Circle’s Stock Soars 168% on NYSE Debut, Signaling Strong Investor Confidence in Stablecoin Market

On June 5, Circle Internet Group, the issuer of the USD Coin (USDC) stablecoin, made a striking debut on the New York Stock Exchange (NYSE) under the ticker symbol CRCL, with its stock price surging 168% above its initial public offering (IPO) price of $31 per share. Opening at $69 and closing at $81.69, the stock briefly peaked at $103.75 during trading, reaching a high of 234% above the IPO price.

A Milestone IPO for the Crypto Industry

Circle’s IPO, which raised $1.1 billion through the sale of 34 million shares, exceeded its initial target of $896 million, reflecting enthusiastic interest from institutional investors. The offering valued the company at approximately $6.9 billion, with a potential fully diluted valuation of $8.1 billion. The upsized IPO, managed by lead underwriters J.P. Morgan, Goldman Sachs, and Citigroup, included 14.8 million shares from Circle and 19.2 million from existing shareholders.

Circle’s IPO drew strong investor support. Initially targeting a $5.4 billion valuation, Circle raised the IPO price from $24–$26 to $31 per share and increased the share issuance from 24 million to 34 million due to robust demand.

The upsized offering and higher share price reflect strong demand from institutional investors, with major firms like BlackRock and Cathie Wood’s ARK Investment expressing significant interest. BlackRock, an existing Circle backer, reportedly planned to acquire 10% of the IPO shares, while ARK indicated interest in purchasing $150 million worth of stock. According to Bloomberg, the IPO was oversubscribed by more than 25 times, reflecting strong investor confidence in Circle’s business model and the broader stablecoin market.

Regulatory Tailwinds and Market Context

The debut performance reflects the stablecoin market’s growth, which reached a total market capitalization of over $249 billion in 2025. USDC, the second-largest stablecoin with a $61 billion market cap, accounts for 24.5% of the market. Citibank projects the stablecoin market could reach $3.7 trillion by 2030, highlighting Circle’s growth potential.

Circle’s strong market debut also aligns with growing expectations of favorable crypto regulations in the U.S. under the current administration. The proposed GENIUS Act aims to create a clear regulatory framework for stablecoins, potentially boosting adoption. Circle’s focus on compliance and partnerships with BlackRock and Coinbase strengthens its position.

Controversies and Risks

Despite the enthusiastic reception, Circle’s IPO has not been without controversy. According to The Block, Arca’s Chief Investment Officer Jeff Dorman posted an open letter on X, expressing frustration over Circle’s IPO allocation process. Despite Arca’s $10 million investment order placed on the first day of Circle’s roadshow, the firm received only $135,000 in shares. Dorman voiced disappointment and indicated plans to close Arca’s Circle account and shift to competitors like USDT. The post has since been deleted.

Additionally, BitMEX co-founder Arthur Hayes raised concerns about Circle’s long-term stock performance, drawing parallels to the 2017 ICO boom. In an X post, he cautioned that the crypto industry is entering an “IPO craze” from 2025–2027, warning, “This is the start of a mania. It will end with an EOS-like blockbuster IPO that extracts insane amounts of fiat capital and tanks on open”