Stablecoin USDC Issuer Circle’s Stock Continues to Surge on NYSE, Reaching Over $120
Stablecoin USDC issuer Circle Internet Financial (CRCL) performed impressively in its initial public offering (IPO) on the New York Stock Exchange (NYSE), with its stock price peaking at $123.51 the day after listing, nearly quadrupling from the issue price of $31. This IPO raised nearly $1.1 billion for Circle and set a record for cryptocurrency companies going public in recent times.
Market Reaction Exceeds Expectations
Circle priced its shares at $31, above expectations. On the first day of trading on June 5, the price opened at $69, reached an intraday high of $103.75, and closed at $83.23, marking a 168% increase. According to Bloomberg terminal data, trading was temporarily halted multiple times due to extreme volatility. On June 6, the stock price continued to rise to $123.51.
Circle’s performance far surpassed other recent IPOs in the cryptocurrency and fintech sectors. For instance, Fold surged approximately 30% on its first day, Coinbase (2021) saw a 31% increase, eToro (2023 SPAC listing) rose only 4%, and Robinhood (2021) even dropped over 8% on its first day.
Analysts: Affirmation for Stablecoin Business
Analysts noted that Circle’s success reflects market recognition of the stablecoin business, alongside optimistic investor sentiment regarding industry prospects under rumored pro-crypto policies from Trump. Spartan Group partner Casper Johansen stated:
“The opening of the IPO market has significant ripple effects for the entire crypto M&A and financing landscape, not only providing liquidity for early investors but also empowering newly public companies to pursue M&A transactions using cash and stock.”
Traditional financial institutions also recognize the importance of stablecoins. Visa’s CEO has indicated that combined with Visa’s technology, stablecoins are expected to revolutionize global finance. According to Visa data, stablecoin transactions worth $3.8 trillion have been processed in the past month.
Institutional Investors Show Strong Interest
Notable institutions have demonstrated significant interest. Cathie Wood’s ARK Investment Management aims to purchase up to $150 million in stock, while BlackRock plans to acquire 10% of the IPO shares.
