USDC Issuer Circle Valued at $5B In Pre-IPO Trading: Details

Circle, the issuer of the second largest stablecoin, USDC, is selling its stock at $5 billion valuation as it gears up for its upcoming IPO. This value is notably lower than the $9 billion reached in 2022 during its unsuccessful SPAC deal attempt.

Circle Selling Pre IPO Stock in Secondary Market

Three insiders recently shared the news that Circle Internet Financial private stocks are up for grabs in the secondary market. For context, a secondary market is where investors trade securities like stocks and bonds initially issued. Oftentimes, these stocks are pre-owned by the firm’s early investors or employees who choose to push out their shares before the public offering. 

The stock value set by Circle, which recently extended its Web3 services to the Solana blockchain, is between $5 billion to $5.25 billion. This year’s market stock price is way lower than the $9 billion valuation in 2022. 

Back then, the firm tried to go public with Concord Acquisition Corp., a SPAC. Unfortunately, the U.S. regulatory agency did not green-light the deal, forcing both parties to call off the proposed merger. 

The valuation difference between 2022 and now has caused an uproar in the market, with many enthusiasts wondering what could have led to it. It is worth noting that the secondary market is faced with a downtrend with many investors selling to raise cash.

Crypto Firms Mulls IPO Launch in the U.S.

Considering this stock valuation crunch and the outlook of the market, it is not certain where Circle currently is with its IPO plans.

Noteworthy, the stablecoin issuer initiated the process to go public again at the beginning of this year. To this end, it submitted a confidential draft S-1 document to the U.S. Securities and Exchange Commission (SEC). A few months later, the Coinbase-backed firm hinted at plans to shift its legal headquarters to the U.S. before the planned IPO. 

So far, the firm has submitted documents to relocate from its current base in Ireland. 

Like Circle, crypto mining company Genesis Digital Asset, is also considering going public in the United States.

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