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Circle officially applies for IPO
Company performance remains unremarkable
Previously attempted SPAC listing but failed
The stablecoin issuer Circle has submitted an IPO application to the U.S. Securities and Exchange Commission (SEC), planning to go public on the New York Stock Exchange. According to its prospectus submitted on April 1, the USDC issuer plans to list its Class A common stock under the ticker symbol “CRCL.” The prospectus does not detail the number of shares to be issued or the target price for the initial public offering.
The document indicates that Circle’s revenue for 2024 is projected to be $1.67 billion, a year-on-year increase of 16%. Its net income for the previous year was $155.6 million, down 41.8% compared to 2023, while in 2022 it recorded a net loss of $761.7 million. Dragonfly Capital partner Omar Kanji believes that, based on the data in the document, there is nothing particularly impressive, and it is difficult to understand how Circle’s IPO could be priced at a $5 billion valuation; overall, it feels more like Circle is trying to seize the last opportunity to raise funds before stronger competitors enter the market and secure more liquidity.
On the other hand, the document also shows that Circle paid nearly $908 million to its primary distribution partner, Coinbase, in 2024 to circulate USDC on the cryptocurrency exchange. Agora CEO Nick van Eck pointed out that this enormous cost means “Coinbase is making more money from USDC than Circle.” VanEck Digital Asset Research Director Matthew Sigel stated that the high costs partly explain why Circle’s revenue increased in 2024, while its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization), pre-tax profit, and net income declined.
The document reveals that over 99% of Circle’s revenue last year came from its stablecoin reserves. The company generates some revenue by holding interest-bearing treasury bills. Circle also holds $6.2 million in Bitcoin, $5.6 million in Sui, and over $3.3 million in Ethereum, while also holding Sei, Aptos, and Optimism.
The company previously attempted to go public in 2021 through a special purpose acquisition company (SPAC) merger but abandoned the effort in December 2022; it again attempted to go public in January 2024 by submitting confidential documents to the SEC. Reports indicate that cryptocurrency exchange Kraken and blockchain security company BitGo are also among the industry participants planning to go public this year or early 2026.