In 2025, the US IPO market showed mixed results, with several companies spanning sectors such as cryptocurrency, artificial intelligence, energy, and healthcare going public one after another. However, the market did not replicate the previous surge in IPOs, and the average returns lagged behind the broader market. This phenomenon indicates that stories are no longer sufficient to support valuations, and investors are returning to fundamentals.
US IPO Revival but Can't Outperform the Market, Precise Stock Selection Becomes Key
Bloomberg reported that although the US IPO market in 2025 successfully shook off the sluggishness of previous years, its performance was not particularly impressive. According to statistics, excluding closed-end funds and SPACs, the weighted average increase of newly listed companies that year was 13.9%, trailing the S&P 500's 16% gain.
In other words, for most investors, betting heavily on new listings is less attractive than focusing on the broader market. The phenomenon of market-wide gains diminishing also significantly increases the risks and difficulty of stock selection for IPOs.
(SpaceX IPO valuation boosts, Elon Musk's net worth surpasses $600 billion)
Does Scale Determine Destiny? Winners Show Mature Companies Are Favored
Further analysis reveals a clear size segmentation in IPO performance. Mid-sized IPOs with fundraising amounts between $500 million and $1 billion only increased by an average of 5.6%; large IPOs raising over $1 billion, on the other hand, saw an average rise close to 20%.
For example, large, mature companies seem to be more favored by the market. Medical device company Medline became the IPO winner of the year with a $7.2 billion valuation, and its stock steadily rose by 40% after listing.
PwC US IPO Head Mike Bellin pointed out that the market currently only opens its doors to companies that are "well-prepared":
Investors are no longer chasing short-term momentum but are instead paying more attention to the quality of the company's business. They have raised their standards for going public, which puts mid-sized companies with less solid fundamentals at a disadvantage.
(2025 US Stock IPO Champion: Medical Supplies Company Medline Soars After Listing)
AI Hype Fades: From Overconfidence to Sharp Price Declines
Artificial intelligence remains one of the core themes for IPOs in 2025, but results vary widely.
For example, data center developer Fermi went public without any revenue, benefiting from the AI craze and raising $785 million. However, confidence has since evaporated, and its stock price has plummeted 69% below the IPO price. Business travel payment platform Navan also failed to sustain its listing momentum, with its stock price still below the offering price.
Conversely, CoreWeave became one of the few successful AI cases. Transitioning from a mining company to a cloud infrastructure provider, this AI giant, dubbed the "Nvidia's love child," now has a market value exceeding $50 billion.
(CoreWeave Founder Shares Rare Symbiotic Relationship with Nvidia and High Leverage Debt Financing Strategy)
Cryptocurrency Listing Wave: Volatile and Underwhelming
Meanwhile, the cryptocurrency industry experienced a long-awaited wave of listings last year, but volatility remains high.
The most notable was stablecoin issuer Circle, which raised over $1.2 billion in its IPO. Its stock price surged 278% in the first week, and although the rally cooled later, it remains about 169% above the issue price, indicating market recognition for compliant stablecoin companies. However, most crypto IPOs performed poorly; for example, exchange Gemini's stock rose on the first day but quickly fell below the issue price, currently down more than 60% from the IPO price.
Other companies, including crypto reserve firm (DAT), also failed to escape high volatility and lack of confidence, reflecting investors' cautious attitude toward the crypto industry, which has not disappeared despite going public.
Looking ahead to 2026 IPOs, which crypto companies will go public?
For 2026, specific crypto companies expected to list include:
Asset management firm Grayscale (valuation $30 billion)
Exchange Kraken (valuation $20 billion)
Cold wallet provider Ledger (2023 valuation $1.5 billion)
Ethereum software developer Consensys (valuation $7 billion)
Custodian BitGo (early 2025 valuation $1.75 billion)
In addition, non-crypto companies such as SpaceX (valuation $800 billion), OpenAI (valuation $1 trillion), and Anthropic (valuation $300 billion) are also highly anticipated.
This article: Cryptocurrency Dragged Down the 2025 US IPO Market Performance, with Poor Returns Compared to Investing in the S&P 500, first appeared on Chain News ABMedia.
