Circle Internet, the issuer of the USD Coin (USDC) stablecoin, is reportedly considering the possibility of going public with an initial public offering (IPO) in early 2024, as reported by Bloomberg. The company is said to be in discussions with advisors to assess the feasibility and timing of this move to the public markets, according to undisclosed sources familiar with the matter. While specific details of the IPO plan remain confidential, the consideration of going public aligns with Circle’s growth ambitions and strategic goals.
A representative for Circle confirmed the company’s longstanding aim to become a publicly traded company and stated, “Becoming a U.S.-listed public company has long been part of Circle’s strategic aspirations. We don’t comment on rumors.”
The USD Coin (USDC) currently boasts a market capitalization of $24.42 billion, making it the sixth-largest cryptocurrency and the second-largest stablecoin, as per CoinMarketCap. Although Circle has not disclosed the exact value it seeks to raise in the IPO, a previous attempt in 2022 to go public through a blank-check deal valued the company at $9 billion.
Circle’s SPAC Attempt and SVB Challenges
Circle’s journey toward going public has seen its share of ups and downs. In 2021, the company agreed to a merger with Concord Acquisition Corp., a Special Purpose Acquisition Company (SPAC). However, this merger eventually fell through. In 2022, Circle successfully raised $400 million in a funding round with participation from major financial institutions such as Goldman Sachs, Blackrock, Fidelity, and others. The company was valued at $7.7 billion leading up to the planned merger, according to Axios.
Earlier this year, Circle faced challenges when it was revealed that $3.3 billion of its $40 billion USDC reserves were held at the collapsed Silicon Valley Bank. The company had requested wire transfers before the bank’s collapse, but these transactions did not go through as intended. This situation caused the price of USDC to drop to an all-time low of approximately 0.8774, a significant deviation from its intended value of $1.
Despite these previous setbacks and challenges, Circle’s determination to pursue a public listing remains intact. However, as of now, no concrete plans for an IPO have been officially confirmed, and the company has not provided public statements in response to recent speculations.