Circle Internet Financial, the issuer behind the USDC stablecoin, is seeing its privately held stock trade at a valuation of $5 billion to $5.25 billion on the secondary market. Sources close to the company confirm this valuation as Circle’s plans to go public later in the year enter top gear. According to these sources, Circle is allowing limited trading of its shares in the secondary market. This means that the transactions are selectively approved, albeit on a case-by-case basis.
Those with inside knowledge confirm that the secondary sales are been driven by two sets of people. They are either early-stage investors seeking liquidity or Circle employees looking to monetize stock options.
Either way, Circle has set a minimum valuation threshold of $5 billion for these trades.
Stablecoin Issuer Circle Preps for Market Debut
As of publication, Circle was yet to issue an official statement regarding this latest development. However, it might be worth noting that the company’s earlier attempt at an Initial Public Offering (IPO) saw it reaching a $9 billion valuation in 2022. That was at the time of its proposed merger with Concord Acquisition Corp, a special purpose acquisition company (SPAC).
The proposed deal was later dropped in December 2022 after it failed to bag SEC approval coupled with the market downturn that the FTX collapse brought about.
Optimism Remains
Speaking about the obvious dip in valuation since 2022, sources with good knowledge of the matter believe that hope remains for the long-term prospects of Circle. A spokesperson insisted that investors need not worry about the figures implied by the secondary-market trades. With many investors in the secondary market forced to sell assets under pressure, the current trading prices may not fully reflect what the future holds for Circle’s real valuation.
Another noteworthy development around Circle is its USDC stablecoin, which has continued to gain traction. This is reflected in its fast-growing user base as well as the transaction volumes. According to a January report, the number of USDC wallets with at least $10 surged by 59% over the past year, reaching around 2.7 million. By the end of November 2023, USDC transactions had also hit 595 million, the report added.
Looking ahead, Circle’s IPO plans remain intact and appear to be in good order. The company filed a confidential draft S-1 document with the SEC in January. However, the specifics regarding the IPO’s share count, price range, and timing remain undisclosed.
Circle has hinted that it is planning to relocate its headquarters from Ireland to the U.S. in anticipation of its public market debut.
