Circle files for IPO in US

2024-01-11 06:39:07

The USDC issuer Circle is taking another jab at going public after a SPAC agreement with Concord Acquisition broke down in late 2022

Stablecoin operator Circle has filed a confidential S-1 form with the United States Securities and Exchange Commission (SEC) according to a Jan. 11 press release seen by crypto.news. The draft indicates Circle’s intent to go public and offer shares in an initial public offering (IPO).

The number of shares Circle intends to offer and the price range for these shares was undisclosed at press time

This filing is Circle’s second attempt at going public, but the firm’s first direct go at an IPO. Previously in 2021, the stablecoin company announced a special purpose acquisition company (SPAC) agreement with a public firm known as Concord Acquisition, an entity founded by veteran investment banker Bob Diamond in the same year amid a bull run

The stablecoin provider planned to double its market value to over $9 billion by merging with Diamond’s Concord

Although Circle filed an S-4 document with the SEC at the time, the deal ultimately broke down in late 2022/early 2023. Circle CEO Jeremy Allaire said the move was shuttered as his company fell short of the SEC’s qualification period. S-4 documents are submitted when a company seeks authorization for new share sales

At the time, Allaire noted “an awfully long time waiting for approvals” citing delayed feedback from Gary Gensler’s SEC. However, the CEO also maintained that Circle’s plans to go public were unchanged

The USD Coin (USDC) token is the second-largest stablecoin in crypto, making Circle the second-biggest operator behind Tether. Pegged to the US dollar, USDC boasts a market cap of over $25 billion. While this number puts Circle’s product in the top 10 cryptocurrencies in the world, USDC’s market cap has fallen nearly 50% in the past year

Moreover, the token experienced turbulence in Q1 2023 following a series of bank runs and a US banking crisis involving several mammoth financial institutions including Silicon Valley Bank Over a year later, Circle is expanding across Europe, targeting key licenses in a bid to grow its market share.

Circle’s USDC market cap | Source: CoinMarketCap

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