Circle IPO is reported to be priced higher than expected to bring in $1.1 billion.

Circle Internet Group Raises Nearly $1.1 Billion

Circle Internet Group Inc. and its shareholders have successfully raised around $1.1 billion through expanded initial public offerings, indicating a growing acceptance of Stablecoin issuers.

On Wednesday, the company, along with co-founder and CEO Jeremy Allerle, sold 34 million shares at $31 each, based on prior reports from Bloomberg. This pricing sets a market value of approximately $6.9 billion, calculated from the shares still outstanding. When considering employee stock options, restricted stock units, and warrants, the total valuation is around $8.1 billion.

This development appears significant, particularly as regulations regarding digital tokens tied to the dollar or other currencies are being discussed in Congress, potentially enhancing their legitimacy. There are also indications that leading Wall Street banks may look into issuing their own Stablecoins, according to reports from the Wall Street Journal last month.

Data from CoinMarketCap notes that Circle’s USDC accounts for nearly 29% of the Stablecoin market as of late March. Approximately $61 billion worth of these tokens were circulating by May 29, according to the website.

Circle’s IPO included the sale of 14.8 million shares directly from the company and an additional 19.2 million shares from selling shareholders. Remarkably, demand for shares surged, with orders exceeding supply by over 25 times when trading paused on Tuesday, as informed sources revealed.

The IPO target increased to 32 million shares on Monday, adjusting the price range to $27-28 per share, up from an initial range of $24 to $26 for 24 million shares.

Additionally, filings show that Ark Investment Management, led by Cathie Wood, is interested in acquiring up to $150 million in shares during Circle’s IPO. There are reports that BlackRock Inc. intends to secure about 10% of its IPO stake.

It’s worth noting that BlackRock manages the government money market fund for Circle, which holds a substantial 90% of the reserves supporting the USDC Stablecoin. The Circle Reserve Fund reportedly had a balance of $53.3 billion as of May 29.

Valuation and Previous Offers

According to Pitchbook, Circle had a valuation of $7.7 billion after its funding round in 2022. The company initially filed confidentially for its IPO early in 2024, more than a year after abandoning plans to go public through a merger with a special purpose acquisition company, which would have valued it at about $9 billion.