Circle (CRCL) Makes a Splash with IPO
Circle stock (CRCL) skyrocketed in its inaugural trading session on Thursday, June 5, 2025, surging by as much as 200% at its peak. The stablecoin issuer made its much-anticipated public market debut, with shares ultimately closing at $83.23, marking a staggering 168% increase from its initial public offering (IPO) price of $31.
Trading was halted multiple times during the day due to extreme volatility, as shares opened at approximately $69 and quickly climbed. By the end of the day, Circle's market capitalization soared past $16 billion.
Circle's Revenue and Market Position
Circle is known for issuing the stablecoin USDC (USDC-USD), which is dollar-backed. As of the end of Q1, there were $60 billion worth of USDC in circulation. During the first three months of the year, Circle reported a revenue and reserve income of $578.6 million, a remarkable 58.5% increase from the previous year. The majority of this revenue comes from 'reserve income,' which is generated from cash backing USDC held in banks or invested in Treasury bills. The company's adjusted EBITA for Q1 stood at $122.4 million.
In 2021, Circle attempted to go public through a SPAC but postponed the plans a year later. Now, with a successful IPO behind it, Circle has solidified its place as the second-largest stablecoin issuer in the market, trailing only Tether (USDT-USD), which has approximately $150 billion in circulation.
Positive Market Environment
The IPO arrives during a notably favorable period for cryptocurrency markets, partly fueled by the recent election of Trump and his family's involvement in the industry, which has benefitted the sector. Bitcoin recently reached record highs exceeding $110,000. Public companies are increasingly integrating cryptocurrency exposure into their strategies, following the successful bitcoin treasury approach adopted by Michael Saylor at Strategy (MSTR).
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