The long-awaited IPO filing revealed $156.9 million in net income from last year, down from $271.5 million in 2023.
Circle Files for IPO Amid Rising Stablecoin Adoption and Crypto Industry Growth
Circle, the issuer of USD Coin (USDC), has officially filed an S-1 registration statement with the U.S. Securities and Exchange Commission (SEC) for its highly anticipated initial public offering (IPO). According to the April 1 filing, Circle plans to list its Class A common stock on the New York Stock Exchange (NYSE) under the ticker symbol “CRCL.”
Key Details of Circle’s IPO Filing
The filing outlines Circle’s plans to offer an undisclosed number of Class A shares, while certain existing shareholders are also registering shares for sale. However, the expected share price range has not yet been determined.
Proceeds from shares sold by Circle will support its business expansion, while funds from shares sold by existing stakeholders will not benefit the company. The IPO will be underwritten by leading financial institutions, including JPMorgan and Citigroup, with a 30-day option to purchase additional shares to cover over-allotments.
Financial Performance & Revenue Growth
Circle’s IPO filing provides an in-depth look into its financial performance, revealing impressive growth in recent years:
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Total revenue and reserve income for 2024 reached $1.68 billion, up from $1.45 billion in 2023 and $772 million in 2022. The majority of this revenue was derived from interest earned on reserves backing USDC.
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Operating expenses in 2024 totaled $491.7 million, with the highest costs allocated to:
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Employee compensation: $263.4 million
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General and administrative expenses: $137.3 million
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IT infrastructure: $27.1 million
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Net income for 2024 stood at $156.9 million, a decline from $271.5 million in 2023, but a significant recovery from the $761.8 million loss in 2022.
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Adjusted EBITDA for 2024 was reported at $284.9 million.
Circle also recorded $4.3 million in digital asset losses and impairments, alongside $54.4 million in other income, primarily from non-core operations.
Strategic Plans for IPO Proceeds
Circle plans to use funds raised from the IPO to enhance its blockchain technology, support USDC adoption, and expand its role in the digital payments sector. The company will focus on product development, working capital, operational scaling, and potential acquisitions to strengthen its presence in the crypto economy.
Circle’s Three-Tier Share Structure
Upon going public, Circle will implement a three-tier share structure to maintain balanced governance:
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Class A shares (IPO shares) will carry one vote per share.
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Class B shares, held by co-founders Jeremy Allaire and Patrick Sean Neville, will carry five votes per share, but are limited to 30% of total voting power.
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Class C shares will have no voting rights and will only be convertible under specific conditions.
This structure ensures that Circle does not qualify as a “controlled company” under NYSE governance regulations.
A Long-Awaited Public Listing
Circle’s IPO announcement follows years of delayed listing attempts, including a terminated 2021 SPAC merger. This marks its first attempt at a traditional IPO, coinciding with the rising adoption of stablecoins and increasing regulatory focus on blockchain-based financial infrastructure.
As of now, Circle’s shares have no prior public market, and the listing remains subject to regulatory review and market conditions. Further details on pricing, share volume, and valuation will be disclosed in a future filing ahead of the official listing.
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