Key Takeaways
- BlackRock is seeking a 10% stake in Circle's $624M IPO.
- ARK Invest plans to buy $150M worth of Circle shares.
- Circle's net income dropped 41.8% in 2024 despite a rise in revenue.
BlackRock is reportedly preparing to acquire a 10% stake in Circle’s initial public offering (IPO), as the stablecoin issuer seeks to raise $624 million.
Institutional interest
According to a May 28 Bloomberg report, BlackRock is among the institutional investors planning to purchase a sizable portion of Circle’s IPO shares.
Cathie Wood’s ARK Invest is also reportedly eyeing $150 million worth of shares.
Circle’s IPO details
Circle, issuer of the USDC stablecoin, began offering 24 million shares of Class A common stock on May 27.
The offering includes both newly issued shares and those held by existing stakeholders, including CEO and co-founder Jeremy Allaire.
Demand appears to be high, with multiple times the available shares already ordered.
IPO delays & acquisition rumors
The company had initially filed for its IPO on April 1 but delayed the move citing economic uncertainty.
Rumors had circulated that Ripple and Coinbase were exploring a potential acquisition of Circle, though the company denied those claims, stating…
It is not for sale.
Market position & financial performance
Circle’s USDC currently holds a 24.6% share of the stablecoin market, with a market capitalization of $60.9 billion, second only to Tether’s USDt.
Despite generating $1.67 billion in revenue in 2024—a 16% increase from 2023—Circle’s net income fell sharply, down 41.8% year-over-year to $155.7 million.
Tether’s different strategy
Tether, Circle’s main competitor, has shown no interest in going public.
CEO Paolo Ardoino mentioned that the two stablecoin giants have different strategies.
He stated on April 4:
Tether doesn’t need to go public.
