Hi everyone! This is Patate talking to you about the future Circle IPO. The creator of USDC, Circle, has been planning to go public in April. According to their earnings, the dollar pegged token issuer had $1.67 billion in revenue for 2024, which is a 16% increase from its 2023 revenue.
According to the Wall Street Journal (WSJ), Circle is going to delay its IPO to a later date because of the economic uncertainty surrounding tarrifs.
The company registered with the United States Securities and Exchange Commission (SEC) on April 1st to take the company public, but amid concerns about Trump’s economic policies, they decided, along with other non crypto companies such as Klarna and StubHub, to delay the IPO until stabilization.
Circle is planning to sell its shares under the ticker symbol $CRCL. This is because of recent volatility in the stock market where in 3 days in a row, we had over 4% decline in the S&P500. A recession might be on the horizon and Circle has decided to not release their IPO in an almost certain market decline. The choice to wait makes a lot of sense because people are more wary of the market right now and going in while the situation is as chaotic as it is might be a bad decision.
I certainly wouldn’t be comfortable in an IPO right now and I think it’s very fair that they are also willing to delay things.
what are your thoughts about Circle? Would you be willing to invest in their IPO? I am pretty bullish on Circle as a whole with how stablecoins have taken a big role in crypto. Thanks for reading.
- Patate
