Circle Targets $7.2 Billion Valuation in June 5 IPO

Circle is preparing to step into public markets with a valuation target that has already caught the attention of major players. The firm behind USDC, the second-largest USD-backed stablecoin, has priced its upcoming IPO at $28 per share, aiming for a total valuation of $7.2 billion. The offering is expected to land on Thursday, June 5.

Good to know

• BlackRock plans to acquire 10% of Circle shares when trading begins.
• USDC is the second-largest USD-pegged stablecoin, after Tether’s USDT.
• Crypto analysts are calling the $28 per share price “cheap” long-term.

The company’s decision to move forward with its IPO comes at a time when the current US administration appears more open to crypto regulation. That climate may have contributed to Circle’s confidence in the public offering.

Circle filed for its initial public offering on April 1, with plans to wrap up the process before the month ended. But within days, the company signaled a possible delay, pointing to ongoing uncertainty in the broader economy.

BlackRock, already involved with Circle as the reserve manager for USDC, intends to purchase 10% of the newly issued shares. BlackRock’s continued involvement signals a broader institutional interest in crypto infrastructure tied to traditional finance.

Michael Ashley Schulman, Chief Investment Officer at Running Point Capital, weighed in on the general outlook for stablecoins in the current market. He said,

“Issues regarding memecoin hype and more specifically Trump’s ventures into a namesake coin should not directly affect the outlook for stablecoins backed by hard currency.”

Meanwhile, reactions within the crypto community show interest in Circle’s pricing strategy. Pseudonymous analyst The Flow Horse believes the valuation is low considering the company’s potential.

“Circle IPO seems interesting to me. I think $28 is going to look cheap over a multi-month period. Outside of the initial event volume, I will be looking for price to develop a clean range and ideally start to establish a longer-term position.”

USDC has remained one of the most widely used stablecoins for trading, DeFi, and cross-border payments. Although Tether’s USDT leads in overall market cap, Circle’s IPO could shift sentiment if institutions continue backing USDC through public equity.