BlackRock Eyes 10% of Circle's IPO Shares 📊

BlackRock is setting its sights on acquiring 10% of the shares that Circle, a leading stablecoin issuer, plans to release during its initial public offering (IPO). As revealed by Circle's updated IPO prospectus, they intend to raise up to $624 million by offering shares priced at over $24 each. Circle is preparing for a listing on the New York Stock Exchange under the symbol CRCL, aiming for a valuation close to $5.43 billion at the time of its IPO. USDC, the second-largest stablecoin, is issued by Circle and backed by dollar-denominated assets, including U.S. Treasury bonds. In 2024, Circle reported a net income of $155.7 million on $1.68 billion in revenue. Despite previous bids from Coinbase and Ripple, Circle plans to proceed with its IPO, entering a challenging market affected by economic uncertainties. Circle plans to sell 9.6 million shares, with existing shareholders divesting an additional 14.4 million shares. CEO Jeremy Allaire will sell about 8% of his holdings, while other key executives and venture capitalists like Accel and Breyer Capital also plan to sell portions of their stakes. BlackRock, a current backer of Circle, has shown growing involvement in the crypto space and previously joined Circle's $401 million funding round in 2022. They also manage the Circle Reserve Fund. Circle continues to innovate, including developing a smart contract off-ramp for the BlackRock USD Institutional Digital Liquidity Fund. USDC currently holds a $62.1 billion market cap, though Tether's USDT remains the leader in the stablecoin market.