Circle Seeks Additional Funding to Boost Valuation
Circle, a leading stablecoin issuer, is on the hunt for more investments. The company has already secured $624 million. Now,it aims to raise even more,potentially reaching a $7.2 billion valuation.
On June 2,Circle announced plans to issue up to 32 million shares. These shares are priced between $27 and $28 each. This move could bring in an additional $896 million. Previously, Circle raised $624 million by selling 24 million shares at $24 to $26 each.This earlier funding pushed the company’s valuation to $6.7 billion.
Circle’s USD Coin (USDC) is the second-largest stablecoin globally. It has a market cap of $60.93 billion. The stablecoin’s value has surged 40% as January 2025. this growth reflects the increasing confidence in the crypto industry under the current management.
The proposed STABLE Act could provide more regulatory clarity for stablecoins like USDC. This could further boost investor interest. Circle’s main income comes from interest on U.S.treasuries backing its stablecoin reserves. In Q1 2025, this generated $557.9 million, a 55.1% increase from the previous year.
J.P. Morgan, Citigroup, and Goldman Sachs are handling the offering. It’s set to close on June 4. Circle will trade on the New York Stock Exchange under the ticker CRCL.
In 2021, Circle tried to go public through a SPAC merger. However, the U.S. Securities and Exchange Commission didn’t approve it in time, leading to the deal’s failure.
