Circle targets a valuation of USD 7.2 billion for its US IPO

This move reflects a growing momentum in the stablecoin market, as the IPO indicates a strong investor demand for crypto firms. The current US administration supports crypto projects, promising a friendlier regulatory environment for the sector. However, this sparked controversy regarding a conflict of interest due to several crypto projects associated with Trump.

Circle exceeds its offer of shares for IPO

Representatives from Running Point Capital believe that problems that arise from meme-coin hype and Trump’s ventures into a namesake coin will not affect the outlook for stablecoins backed by hard currency directly. Stablecoins pegged to the USD are used by crypto traders to move funds between tokens.

Circle filed for IPO on the New York Stock Exchange in May 2025, providing 24,000,000 shares of its Class A common stock. The company offered 9,600,00 shares of Class A common stock, and the selling stockholders are participating with 14,400,000 shares of Class A common stock. Regarding the offering, Circle was to grant the underwriters a 30-day option to acquire up to an additional 3,600,000 shares of Class A common stock to cover over-allotments. At the time of writing, the IPO price was projected to be between USD 24 and USD 26 per share. However, Circle and other investors are currently seeking to raise up to USD 896 million from 32 million shares priced between USD 27 and USD 28 each.

Circle's dollar-denominated stablecoin, USDC, is a large asset expected to benefit from the pending stablecoin bill. Running Point Capital mentions that even a slow-moving bill won’t derail the upsizing, which is a calculated risk from the company.

Circle’s primary revenue source, its reserve income, rose 55.1% to USD 557.9 million in Q1 2025 from interest on the Treasuries backing its USDC coin. Transaction costs also jumped 68.2%, outpacing revenue growth for Circle. This distributes USDC primarily via its partnership with Coinbase and other third-party distributors.