Stablecoin Issuer Circle Submits US IPO Application Despite 42% Drop in Profit

Circle, the issuer of USDC stablecoin, has submitted its Form S-1 registration with the U.S. Securities and Exchange Commission (SEC), formally announcing plans to go public on the New York Stock Exchange (NYSE) under the ticker "CRCL".

Yet, Circle hasn't revealed the number of shares it will be offering in the initial public offering (IPO) or its anticipated listing price, making its valuation unclear.

Second Try at Public Listing

This isn't Circle's first try at being public. The company was going to list in 2022 through a special purpose acquisition company (SPAC) merger with a valuation of $9 billion, but the transaction collapsed.

In the meantime, Coindesk reports that privately traded Circle shares are now worth between $5 billion and $5.25 billion in secondary markets.

Established in 2013, Circle is the second-largest stablecoin issuer, with its USD-pegged stablecoin USDC having a market capitalization of over $60 billion. Circle and Coinbase originally co-governed USDC under the Centre Consortium, which collapsed in August 2023. Coinbase currently has an equity stake in Circle, whose amount remains undisclosed.

The SEC filing also disclosed that Circle paid out close to $908 million to its major distribution partner Coinbase for USDC circulation.

Revenue Increases, but Profit Drops

Circle's revenue in 2024 jumped to $1.67 billion, a 16% year-over-year growth. But net income fell 41.8% to $155.6 million. Though Circle was profitable in 2023 and 2024, the company incurred a net loss of $761.7 million in 2022.

As per the filing, 99% of Circle's revenue were driven by stablecoin reserves, with the rest being earned from keeping U.S. Treasury bills.

Crypto IPOs Mounting

At the moment, Coinbase is among the top publicly traded crypto companies in the U.S. But Circle does not go alone. Crypto exchange operator Kraken and blockchain security company BitGo are also considering IPO plans for late 2025 or early 2026.

Moreover, Israeli investment site eToro also recently submitted a U.S. listing with the SEC. Though eToro provides various trading instruments, 38% of its 2024 commission was derived from cryptocurrency trading and it closed the year with a net profit of $192 million.

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