Circle Considers 2024 Initial Public Offering As USDC's Market Cap Dips
Summary:
Circle, the company behind USD Coin (USDC), is reportedly considering an initial public offering (IPO) in early 2024. The possibility still remains uncertain after the $4.5 billion merger with Concord Acquisition fell through in 2021. Currently, USDC has a market cap of $24.6 billion, down 56% from June 2022. Circle received investments from leading financial services firms and experienced a temporary price dip due to exposure to the now-defunct Silicon Valley Bank.
Circle, the organization behind the USD Coin (USDC), is reportedly considering launching an initial public offering (IPO) at the start of 2024, as stated by Bloomberg. On November 7, Bloomberg's undisclosed insiders reported the current discussions with advisors about a potential IPO by the stablecoin issuer. However, the possibility of this leading to an actual public listing remains uncertain.
Reflecting on Circle's history, it attempted to venture into the public market through a merger with Concord Acquisition worth $4.5 billion in July 2021, which unfortunately didn't proceed as planned. A Circle spokesperson expressed to Bloomberg that becoming a public entity in the U.S. has always been in their strategic plans. Further details on the matter are restricted as the representative kept their comments limited to declining rumors.
If Circle does proceed with the IPO, it will mark their first-ever offering of public shares. The company, valued at $9 billion in February 2022, made adjustments to its merger terms with Concord. However, in contrast, USDC's market cap has taken a 56% dip from its high of $55.9 billion in June 2022 to its current value of $24.6 billion.
Circle's success stories include recognition at #DCFintechWeek for their research, conducted by their Chief Economist @gordonliao and his team, highlighting a 90% decline in stablecoin's use for speculative crypto trading since 2019. Further stating, the utility era of $USDC is in effect.
Big financial firms such as BlackRock, Fidelity Management, Goldman Sachs, General Catalyst Partners, and Marshall Wace have made investments in Circle. The USDC experienced a temporary divergence from the U.S dollar in March due to its $3.3 billion exposure to the now-defunct Silicon Valley Bank. Falling to $0.87 on March 11 before regaining its standing at $1 on March 14, as tracked by CoinGecko, USDC has had its share of ups and downs.
Published At
11/8/2023 2:49:46 AM
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