Circle, the stablecoin issuer, has announced a $1.4 billion share sale just two months following its initial public offering (IPO). This move comes in response to a 349% surge in stock price.
Overview of the Share Sale
The offering will include 10 million shares, with 2 million from the company itself and 8 million from early investors, including CEO Jeremy Allaire.
Breaking Lock-Up Norms
Typically, such insider selling occurs six months or more after an IPO. However, JPMorgan Chase, the lead underwriter for Circle, waived the standard lock-up restrictions, allowing the company and its insiders to seize the opportunity. The two-day marketed offering was oversubscribed and expected to price on Thursday.
Expert Commentary
Josef Schuster, Founder of IPOX Schuster, commented: "It’s an opportunistic move by them that makes sense and that’s how risk gets transferred into public market." According to Bloomberg, despite trading below its peak of $298.99, Circle's shares are still up nearly 400% from the IPO price.
Circle's stock sale just two months post-IPO highlights active market dynamics and ongoing investor interest in rapidly growing firms within the crypto space.
