Asset management giant BlackRock is reportedly planning to acquire approximately 10% of Circle’s upcoming initial public offering (IPO), signaling a significant move into the stablecoin market. Circle, the issuer of the USDC stablecoin, is aiming to raise $624 million through the sale of 24 million Class A common shares. The offering includes shares from both the company and existing stakeholders, including co-founder and CEO Jeremy Allaire. According to reports, the IPO has already attracted orders exceeding the number of shares available.
In addition to BlackRock, Cathie Wood’s Ark Investment Management has expressed interest in purchasing $150 million worth of shares in the offering. Circle had initially filed for an IPO on April 1 but delayed the plans due to economic uncertainty. Recent reports suggested that crypto firms Ripple and Coinbase were exploring a potential acquisition of Circle, but the company has dismissed these speculations, stating it “is not for sale.”
As of May 28, Circle’s USDC stablecoin holds a market capitalization of $60.9 billion, representing 24.6% of the stablecoin market, second only to Tether’s USDT. According to its Form S-1 registration statement, Circle reported $1.67 billion in revenue for 2024, a 16% increase year-over-year. However, net income declined from $267.6 million in 2023 to $155.7 million in 2024, marking a 41.8% decrease.
Circle’s IPO and the involvement of major institutional investors like BlackRock and Ark Invest underscore the growing interest in the stablecoin sector and its potential impact on the broader financial landscape.
