Stablecoin giant Circle (CRCL, Financial) made a remarkable debut on the U.S. stock market, significantly exceeding expectations and invigorating the IPO landscape. The IPO was priced well above the anticipated range, with subscriptions over 20 times the offering. The stock surged more than twofold shortly after opening, closing with a 168% increase.
Circle's $1.1 billion IPO is the most notable in the cryptocurrency sector since Coinbase (COIN) went public in 2021. This success may inspire other crypto firms to consider going public. Reports suggest that BitGo Inc. is contemplating an IPO later this year, and Kraken plans for a 2026 debut. Gemini has reportedly filed for an IPO in secret, potentially launching later this year.
Unlike other crypto companies like Coinbase and Galaxy Digital (GLXY), Circle derives most of its revenue from U.S. Treasuries and instruments supporting its token value. Investors are attracted to its scarcity value, especially amid recent market rebounds. Circle's IPO coincides with U.S. legislative considerations on stablecoin regulation, enhancing trust and transparency in its network.
Looking ahead, Chime Financial (CHYM) is preparing for a major IPO, with a valuation potentially reaching $11 billion, despite being significantly lower than its 2021 valuation.
