Circle, the American company known for its USDC stablecoin, has officially filed for an initial public offering (IPO) on the New York Stock Exchange.
Details of the IPO Filing
According to the April 1 filing, Circle intends to list its Class A common stock on the NYSE under the ticker ‘CRCL.’ The company’s filing indicates that some current shareholders will also sell shares, though the quantity and price range have not been disclosed yet. Major banks like JPMorgan and Citigroup will underwrite the IPO, with a 30-day window for additional share purchases.
Circle's Financial Performance
Circle's financial disclosures show that reserve income and total revenue increased from $1.45 billion in 2023 to $1.68 billion in 2024. Interest on reserves backing USDC accounted for a significant portion of its profits. Despite the revenue growth, net income for 2024 fell to $156.9 million, down from $271.5 million in 2023, though still a major improvement from a $761.8 million loss in 2022.
Share Structure and Future Plans
Circle's IPO will introduce a three-tiered share structure. Each Class A share, offered for sale, carries one vote. Co-founders Jeremy Allaire and Patrick Sean Neville own Class B shares, limited to 30% of the total voting power but carrying five votes each. Class C shares are convertible under specific circumstances but have no voting rights. The money raised from the IPO will support potential acquisitions, operational growth, and product development.
Circle's IPO on the New York Stock Exchange marks its first attempt at a public listing following the cancellation of a $9 billion SPAC merger in 2021. This public debut represents Circle's intent to further integrate into the financial sector as stablecoin adoption continues to grow.
