Circle already raised the cap for its IPO after it was initially oversubscribed 25x. It’s now offering 34 million Class A common shares at $31 per share, attempting to raise over $1 billion.
The company’s IPO success is inspiring other firms, as Plasma increased its own deposit cap earlier today. Corporate investment is flowing into the crypto sector, and Pump.Fun’s ICO also aims to raise $1 billion.
Circle Sets Ambitious IPO Goals
Of all the long-awaited IPOs in the crypto industry, Circle’s has been the most highly anticipated. Rejecting earlier buyout offers (although the facts are disputed), the USDC issuer set an initial target of raising $624 million at a per-share price of $24-26.
However, the intense level of oversubscription caused it to set higher goals, and it’s currently shooting for $8.1 billion in fully diluted valuation.
Circle, one of the world’s largest stablecoin issuers, has a lot of reasons to be confident about this IPO. Its payments network is quite robust, breaking new records for trading volume in May and cross-chain bridging earlier this week.
Now that its IPO is doing so well, it added 8 million new shares and raised the price to $31 per share, potentially letting it raise over $1 billion.
Naturally, Circle’s IPO success is reverberating through the broader crypto community. Plasma, a purpose-built blockchain to process stablecoin payments, announced an increase in its public sale today.
Indeed, a few metrics suggest that inflated corporate investment benefits the whole crypto industry. Despite scandals and market manipulation concerns, Pump.fun’s new ICO is aiming to raise $1 billion.
With this kind of optimism in the market, it’s very rational for Circle to pursue its own aggressive IPO.
If Circle manages to reach these ambitious IPO goals, the company will have ample resources to undertake new ventures.
Over the last few months, IPO planning has consumed a lot of the firm’s attention, but it has expressed an interest in contending for Tether’s share of the stablecoin market. This seems even more difficult, but the sky’s the limit.
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