Circle Internet, the parent company behind the USDC stablecoin, has revealed ambitious plans for an initial public offering (IPO) that might place its valuation at approximately $6.71 billion. Based in New York, the company aims to raise nearly $624 million by offering 24 million shares, with the anticipated pricing set between $24 and $26 each.

Circle’s IPO Strategy: Offering 9.6 Million Shares

This development arrives amidst a growing enthusiasm for cryptocurrency, largely attributed to a more supportive approach from the current administration towards digital assets.

The administration’s pledge for a more “rational” framework regarding cryptocurrency regulations is emboldening companies in the field to seek public offerings, mirroring the bold moves made by firms like Strategy (previously MicroStrategy).

According to Matt Kennedy, a senior strategist at Renaissance Capital, the outlook for crypto IPOs has improved significantly compared to the past three years. He attributes this renewed confidence to favorable trade negotiations between the US and its global partners, revitalizing the IPO landscape and mitigating prior tariff effects.

In its upcoming offering, Circle intends to sell 9.6 million shares, while existing stakeholders, including venture capital powerhouses Accel and General Catalyst, are set to offer an additional 14.4 million shares.

Moreover, ARK Investment Management, founded by Cathie Wood, has expressed an interest in acquiring up to $150 million worth of shares during Circle’s IPO.

Renewed Market Confidence

Circle’s IPO is poised to become one of the largest cryptocurrency offerings since Coinbase went public in 2021. In addition, Mike Novogratz’s Galaxy Digital marked its entry onto Nasdaq, underscoring the rising trend of cryptocurrency activity in public markets.

“Circle’s debut in the public arena signals a recovery of market confidence, even at a 25% lower valuation, representing a more realistic perspective,” commented analyst Bo Pei from US Tiger Securities.

The timing aligns conveniently with advancements in stablecoin legislation, particularly the GENIUS Act, which aims to bolster cryptocurrency acceptance within the United States. J.P. Morgan has projected the stablecoin market could balloon to somewhere between $500 billion and $750 billion in the upcoming years.

Once the IPO concludes, Circle plans to be listed on the New York Stock Exchange under the ticker symbol “CRCL.” The major underwriters for this offering include renowned financial institutions such as J.P. Morgan, Citigroup, and Goldman Sachs.

This bullish sentiment towards digital currencies has notably contributed to Bitcoin hitting a new all-time high near the $112,000 mark, with the total cryptocurrency market capitalization surging to an impressive $3.5 trillion.

Featured image sourced from DALL-E, with charts provided by TradingView.com.