Stablecoin USDC issuer Circle Internet Financial (CRCL) performed brilliantly in its initial public offering (IPO) on the New York Stock Exchange (NYSE), with its stock price reaching $123.51 on the second day of listing, nearly four times the issue price of $31. This IPO raised nearly $11 billion for Circle and set the best record for a cryptocurrency company's listing in recent times.
Market Response Extremely Hot
Circle was listed at a higher-than-expected price of $31 per share. On June 5th, it opened at $69, reached a high of $103.75 during the day, and closed at $83.23, a 168% increase. According to Bloomberg Terminal data, trading was temporarily suspended multiple times due to extreme volatility. On June 6th, the stock price continued to rise to $123.51.
Circle's performance far exceeded other recent cryptocurrency and fintech company IPOs. For example, Fold rose about 30% on its first day, Coinbase (2021) rose 31%, eToro (SPAC listing in 2023) rose only 4%, and Robinhood (2021) even dropped over 8% on its first day.
Analysts: Stablecoin Business Confirmed
Analysts point out that Circle's success reflects the market's recognition of the stablecoin business and investors' optimistic expectations for the industry under rumors of Trump's pro-crypto policy. Casper Johansen, partner at Spartan Group, stated:
"The opening of the IPO market has an important ripple effect on the entire crypto M&A and financing market, not only releasing liquidity for early investors but also providing new listed companies with the firepower to conduct M&A transactions through cash and stock."
Traditional financial institutions also acknowledge the importance of stablecoins. Visa's CEO has stated that combining Visa technology could revolutionize global finance. According to Visa data, they have processed $3.8 trillion in stablecoin transactions over the past month.
Institutional Investors Actively Participating
Well-known institutions have also shown strong interest. Cathie Wood's ARK Investment Management intends to purchase up to $150 million in stocks, while BlackRock plans to buy 10% of the IPO shares.
