Summary:
Circle's IPO skyrocketed by 167%, closing at $83.23 per share on its first day
The surge reflects strong investor interest in stablecoins amid supportive crypto policies
Could set a precedent for higher IPO pricing for upcoming listings like Omada Health and Klarna
Despite a lower initial valuation than its last private round, Circle's market cap hit $16.7 billion
Circle's success story includes overcoming a failed 2022 SPAC merger, highlighting resilience
Circle, a leading issuer of the USDC stablecoin, made headlines with its IPO soaring 167% above its initial price, closing at $83.23 per share on its first trading day. This remarkable performance underscores the growing investor interest in cryptocurrencies and stablecoins, especially in light of the Trump administration's favorable crypto policies.
Image Credits: KTSDESIGN/SCIENCE PHOTO LIBRARY / Getty Images
The IPO's success could influence upcoming listings, including Omada Health and Klarna, by encouraging higher IPO pricing. Despite starting with a market value of $6.1 billion, below its last private valuation of $7.7 billion, Circle's market cap surged to $16.7 billion by the close, raising $1.1 billion in the process.
Circle's journey to the public market wasn't straightforward. After a failed SPAC merger attempt in 2022, this IPO marks a significant milestone. Major shareholders like General Catalyst and IDG Capital played pivotal roles, with other notable investors including Accel and Breyer Capital.
This event adds Circle to the list of companies that went public at valuations lower than their private peaks, a trend seen with Hinge Health, ServiceTitan, and Reddit. Yet, Circle's stellar debut offers a glimmer of hope for startups contemplating going public in the current market climate.
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