Circle Chases $6B Valuation in IPO After Walking Away From $5B Deal With Ripple and Coinbase

Key Takeaways

• Circle is chasing a $6.4 billion valuation in its new IPO filing.
• The company will offer 24 million Class A shares, with Cathie Wood’s ARK Invest set to buy $150 million worth.
• The filing follows reports that Ripple and Coinbase had tried to acquire Circle for $5 billion.

Circle, the company behind the USDC stablecoin, is taking another shot at going public.

On May 28, it filed to offer 24 million shares of Class A common stock in an IPO that could value the company at up to $6.7 billion.

This is not Circle’s first attempt at a public listing. In 2022, the company abandoned plans to go public via an SPAC merger.

Now, with crypto markets on a stronger footing and investor appetite returning, Circle is trying again, with a more traditional IPO route.

Circle’s IPO Plan

Of the 24 million shares on offer, Circle will sell 9.6 million, while existing shareholders will sell 14.4 million.

Underwriters also have the option to buy up to 3.6 million additional shares to cover over-allotments. The proposed share price is between $24 and $26.

If successful, Circle will list on the New York Stock Exchange under the ticker “CRCL.”

JPMorgan, Citigroup, and Goldman Sachs are leading the deal, joined by Barclays, Deutsche Bank, and Société Générale.

Cathie Wood’s ARK Invest is planning to scoop up as much as $150 million worth of shares, according to the filing.

Ripple and Coinbase Were Spot On

Circle’s IPO would give it a fully diluted valuation of around $6.7 billion , or about $5.65 billion in terms of just outstanding shares—roughly in line with the rumored $5 billion acquisition bids from Ripple and Coinbase earlier this year.

Both companies reportedly approached Circle with buyout offers, but Circle denied receiving any such bids.

Still, the proposed IPO valuation suggests those offers weren’t far off the mark.

The valuation also aligns with earlier estimates from crypto analysts, who told CNN they expected Circle to land somewhere below $10 billion.

Notably, this IPO marks a significant drop from Circle’s earlier valuations. In 2022, a venture round pegged Circle at $7.7 billion, and the now-defunct SPAC deal valued it at $9 billion, according to PitchBook data.

Why Go Public Now?

Circle’s timing seems strategic.

With the broader crypto market rebounding and institutional interest picking back up, especially after Bitcoin’s (BTC) new highs, Circle appears to be betting that the window for crypto IPOs has reopened.

Another key motivation: liquidity.

A large portion of the shares being sold come from insiders, including CEO Jeremy Allaire and venture backers.

After years of limited exits in crypto, VCs are hungry to cash in—though major holders like Accel and General Catalyst will maintain significant stakes.

Despite the selloff by insiders, the IPO could help Circle strengthen its position in the stablecoin market, where it currently sits behind Tether’s USDT but remains a key player thanks to partnerships with Coinbase and others.

And for Coinbase, who co-founded USDC with Circle, the IPO could have broader implications.

Coinbase splits USDC revenue with Circle and captures all interest generated on USDC balances held on its platform.