Circle Upsizes IPO, Targets $7.5B Valuation After BlackRock Interest

Key Insights:

• Circle boosts its public offering size and price as per a new filing with the U.S Securities and Exchange Commission.
• The company now targets a valuation of $7.5 billion after seeking to raise up to $896 million from 32 million shares.
• Crypto industry experts such as believe the move was influenced by BlackRock’s interest in the IPO.

USDC stablecoin issuer Circle boosted its initial public offering size and price, as per a filing with the Securities and Exchange Commission (SEC) on Monday. With the upsized IPO, the firm plans to raise up to $896 million and targets a valuation of $7.5 billion.

JPMorgan, Citi, Goldman Sachs, Barclays, Deutsche Bank, and Societe Generale are the joint bookrunning managers for the IPO.

Circle Boosts IPO Share Price and Size

Circle Internet Group and shareholders have filed Form S-1 with the U.S. SEC to increase the IPO size and price amid increased demand. The firm plans to raise $896 million by offering its 32 million shares at a price between $27 and $28. This is up from the earlier filing, which showed offering 24 million shares between $24 and $26.

The stablecoin issuer could see its valuation at about $7.5 billion on a fully diluted basis (or $6.3 billion undiluted). It plans to list on the NYSE this week under the symbol CRCL.

As per to Bloomberg, the announcement comes as the US sees IPO activity restarting after tariff-induced volatility halted public offerings earlier this quarter.

Notably, Circle’s reserve income, its primary revenue source, from interest on the Treasuries backing its USDC coin, rose 55.1% to $557.9 million in the quarter ended March 31.

Circle IPO Grabs Heavy Demand from Investors

Circle IPO has grabbed heavy demand from institutional investors, with many Wall Street giants planning to buy shares.

Earlier week, BlackRock revealed plans to acquire 10% of the Circle shares through the upcoming IPO. The company will sell its shares, but insiders and investors, including CEO Jeremy Allaire and major VC backers are selling them.

Matthew Sigel, head of research at VanEck, posted on X that the plan to boost IPO size and price comes after BlackRock’s interest in the IPO.

Moreover, Cathie Wood’s ARK Investment Management and affiliates plan to purchase $150 million of shares of Class A common stock.

With many institutions eyeing to buy Circle shares, the IPO is predicted to be oversubscribed. Moreover, investors have not invested in any big public offering due to halt.

Coinbase to Benefit from the IPO Amid Stablecoin Bill Clarity

Crypto exchange Coinbase to potentially benefit from Circle IPO, primarily due to partnership and financial ties between the firms. The crypto exchange receives 50% of the residual revenue generated from the interest earned on reserves backing USDC.

Moreover, Coinbase gets 100% of the interest generated by USDC held on the exchange. Circle IPO will drive mainstream adoption of USDC, with the potential passing of “The Genius Act” stablecoin bill likely to double down on adoption.

USDC is the second-largest stablecoin, with a market cap of over $60 billion at the time of writing. Every unit of the USDC stablecoin is backed by $1 that is held in reserve, mainly liquid cash and short-term U.S. Treasury bonds. Notably, the bonds are custodied at The Bank of New York Mellon and managed by BlackRock.

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