Circle Upsizes IPO to $896 Million, Targets $7.2 Billion Valuation

Circle Internet Group, the issuer of the USD Coin (USDC), the second-largest stablecoin by market capitalization, has significantly increased the size and price range of its initial public offering (IPO) on the New York Stock Exchange (NYSE). According to a filing with the U.S. Securities and Exchange Commission (SEC) on June 2, Circle now plans to offer 32 million shares of its Class A common stock at a price range of $27 to $28 per share, up from the previously announced 24 million shares priced between $24 and $26. This adjustment raises the potential proceeds to $896 million and positions the company for a valuation of approximately $7.2 billion, reflecting robust investor interest and favorable market conditions for stablecoin-focused firms.

Details of the Upsized IPO

The revised IPO structure includes 24 million new shares issued by Circle and 8 million shares offered by selling stockholders, a shift from the initial split of 9.6 million new shares and 14.4 million from existing shareholders. If priced at the top end of the range ($28 per share), Circle could raise $358 million directly, while selling shareholders would receive $538 million. This upsizing, which increases the share count by 33% and the price range by approximately 10%, underscores strong demand from institutional investors.

Circle’s shares will trade under the ticker “CRCL” on the NYSE, with the IPO managed by prominent investment banks, including BNY Capital Markets, Canaccord Genuity, Needham, Oppenheimer, and Santander, alongside junior co-managers AmeriVet Securities, Drexel Hamilton, Mischler Financial Group, and Roberts and Ryan. Notably, BlackRock, the world’s largest asset manager, is reportedly considering acquiring a 10% stake in the offering, though it remains unclear whether the investment would be direct or through an affiliated vehicle. Additionally, Cathie Wood’s ARK Invest has expressed interest in purchasing up to $150 million in shares, signaling confidence in Circle’s growth prospects.

Stablecoin Adoption Fuels Investor Optimism

The decision to upsize the IPO comes amid a surge in stablecoin adoption, with $94.2 billion in transactions settled between January 2023 and February 2025, as reported by Artemis in its latest May report. USDC, Circle’s flagship stablecoin, has maintained its position as a cornerstone of decentralized finance (DeFi) and cross-border payments, with a market capitalization of approximately $60.93 billion as of June 2. Unlike its closest rival, Tether’s USDT, Circle has emphasized regulatory compliance, positioning itself as a trusted player in the U.S. market. This focus has resonated with investors, particularly as the U.S. regulatory environment for cryptocurrencies becomes more favorable under evolving policies.

Circle’s financial performance further bolsters its appeal. In the first quarter, the company reported a 55.1% increase in returns on its Treasury bond holdings, reaching $557.9 million, driven by higher interest rates and growing demand for USDC in institutional portfolios. While Circle’s revenue trails that of Tether, its strategic partnerships, including with Coinbase through the Centre Consortium, and its role in facilitating stablecoin integrations for traditional finance have strengthened its market position.

Market Context and Sentiment

Circle’s journey to its IPO began with its initial filing on May 27, which outlined a $250 million raise at a $5 billion valuation. The rapid escalation in both size and valuation reflects not only investor enthusiasm but also market expectations of the U.S. smoothly passing the STABLE Act, which would provide clear regulatory guidelines for stablecoins. Such regulations are expected to pave the way for widespread adoption of stablecoins in mainstream finance. According to a prior Citibank forecast, the stablecoin market is projected to reach $3.7 trillion by 2030. According to DeFiLlama data, as of June 3, the current stablecoin market size stands at $248.4 billion, implying a potential growth of around 14 times in the next five years.

The market has shown strong optimism toward Circle’s IPO. China Everbright Limited (0165.HK), a Hong Kong-listed company that co-invested in Circle with IDG Capital in 2016, saw its stock price rise by over 24% in trading on June 3 as of the time of reporting, according to Yahoo Finance.

What’s Next for Circle?

As Circle prepares for its NYSE debut, the upsized IPO signals strong confidence in the stablecoin market’s growth trajectory. Analysts expect the offering to serve as a bellwether for investor sentiment toward crypto-native companies, particularly those bridging traditional and decentralized finance. If successful, Circle’s IPO could pave the way for other blockchain firms to tap public markets, especially as stablecoin usage continues to climb.

Investors will be watching closely for the final pricing and allocation details, expected in the coming weeks. With BlackRock and ARK Invest among the potential buyers, Circle’s IPO is poised to attract significant institutional capital, potentially reshaping the stablecoin landscape.