Circle, the company behind the USDC stablecoin, has revised its IPO filing to reflect stronger-than-expected investor demand, according to a June 2 filing with the US Securities and Exchange Commission (SEC).
The updated filing shows Circle now plans to issue 32 million Class A shares, up from the previously announced 24 million. It also raised its proposed price range to between $27 and $28 per share, compared to the initial $24 to $26 range.
If the final pricing lands at the top end, Circle could raise up to $896 million, which is roughly 44% more than the original estimate of $624 million.
This adjustment would also push the company’s valuation to approximately $7.2 billion on a fully diluted basis, up from the earlier $6 billion target.
The offering marks a key milestone for the company as it looks to strengthen its standing in the digital finance landscape. USDC, Circle’s flagship stablecoin, is the second-largest dollar-pegged token globally, with a market cap exceeding $61 billion.
Why Circle upped its IPO
Circle’s decision to expand the IPO comes amid rising institutional interest in stablecoins and growing regulatory clarity.
Market analysts say the stablecoin sector, long considered a niche industry, is entering a new phase of mainstream relevance due to its rising adoption and trust beyond the crypto-native crowd.
As a result, legacy financial institutions like JPMorgan, Citigroup, and others are warming up to stablecoins by exploring a jointly issued dollar-backed asset.
Another substantial evidence of institutional interest in stablecoins is that BlackRock, the world’s biggest asset manager, is one of the largest potential buyers of Circle’s stock.
Sources familiar with the matter say BlackRock intends to purchase roughly 10% of the IPO shares. If that plan materializes, it would further deepen the relationship between the two firms.
BlackRock already plays a key role in managing Circle’s USDC reserves through the Circle Reserve Fund, which holds about 90% of the stablecoin’s backing assets.
However, a stake in Circle would expose the asset manager to the broader stablecoin market and expand its interest in the crypto scene beyond ETFs.
Mentioned in this article
Credit: Source link