Circle’s $1.1B IPO Soars at $31, Signaling Crypto’s Mainstream Surge

• Circle Internet Group (CRCL) raised nearly $1.1 billion in its upsized IPO, pricing 34 million shares at $31 each, above the $27-$28 range, reflecting strong investor demand for its USDC stablecoin.
• The company’s $7 billion market cap, based on 225.34 million shares, is valued at 4.2 times its 2024 revenue of $1.68 billion, with first-quarter net income rising to $64.79 million from $48.64 million a year earlier.
• Backed by J.P. Morgan (JPM), Citigroup (C), and Goldman Sachs (GS), Circle’s IPO, with interest from Ark Invest for up to $150 million in shares, signals growing Wall Street acceptance of digital currencies.

Circle Internet Group (CRCL), a leading stablecoin issuer, has successfully priced its upsized initial public offering at $31 per share, raising nearly $1.1 billion through the sale of 34 million shares, reflecting strong investor confidence in the growing legitimacy of digital currencies. The IPO, led by underwriters J.P. Morgan (JPM), Citigroup (C), and Goldman Sachs (GS), priced above the revised $27-$28 range and increased from an earlier 32 million shares, driven by oversubscribed demand amid a cryptocurrency market surge, with Bitcoin (BTC) recently hitting a record above $110,000. Circle’s USDC, a stablecoin pegged one-for-one to the U.S. dollar, positions the company as a key player in global payments and 24/7 financial markets, with its IPO signaling Wall Street’s increasing acceptance of digital assets, further evidenced by Coinbase (COIN) joining the S&P 500 (SPX) in May.

The company’s financial performance underscores its growth trajectory, reporting $64.79 million in net income on $578.57 million in revenue for the first quarter, compared to $48.64 million in net income on $365.09 million in revenue a year earlier. At $31 per share, Circle’s market capitalization is approximately $7 billion, based on 225.34 million shares outstanding, assuming underwriters exercise their option to purchase additional shares, valuing the company at 4.2 times its 2024 revenue of $1.68 billion. The enthusiastic market response, including Cathie Wood’s indication to purchase up to $150 million in shares, highlights Circle’s strategic role in expanding USDC’s adoption. As the company prepares to trade on the New York Stock Exchange under the ticker CRCL, its focus on scalable, dollar-backed digital currency aligns with the broader industry’s shift toward mainstream financial integration, positioning Circle to capitalize on the evolving cryptocurrency landscape.

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