Circle Internet Financial, the issuer of the stablecoin USDC, is reportedly trading around a $5 billion valuation in the secondary market as it prepares for an initial public offering (IPO). This valuation is significantly lower than the $9 billion it was valued at in 2022 when it attempted to go public through a special purpose acquisition company (SPAC) deal with Concord Acquisition Corp, which ultimately failed.
According to sources familiar with the matter, the company’s privately held stock is being traded in the secondary market on a limited basis, with only specific cases being allowed. The sellers are primarily early-stage investors seeking liquidity and Circle employees monetizing their stock options ahead of the public listing. Notably, the company is not permitting trades below a $5 billion valuation.
Circle’s earlier attempt to go public was halted in December 2022 after the U.S. Securities and Exchange Commission (SEC) did not approve the deal in time, compounded by the collapse of Sam Bankman-Fried’s FTX and the broader crypto market downturn. Despite the drop in valuation, one source noted that the secondary market’s depressed state has led many investors to sell at lower prices, making the current valuation less concerning.
In January, Circle filed a confidential draft S-1 document with the SEC to sell shares to the public. While the number of shares and price range for the offering have not been determined, the company has indicated plans to make the U.S. its new legal domicile, moving from Ireland.
In a report titled “State of the USDC Economy,” Circle noted a 59% increase in USDC wallets holding at least $10, reaching 2.7 million by the end of 2023. The company also reported 595 million transactions during the same period.
