BlackRock Targets 10% Stake in Circle’s USDC-Backed IPO as Demand Soars
BlackRock is positioning itself to acquire nearly 10% of Circle Internet Financial Ltd.’s upcoming IPO, deepening its involvement with the stablecoin issuer. The asset manager already oversees the Circle Reserve Fund, which holds $30 billion in assets backing USDC. While the investment may be channeled through a related entity, neither party has confirmed final terms.
Circle plans to offer 24 million Class A shares—9.6 million newly issued and 14.4 million from existing stakeholders—with underwriters retaining an option for an additional 3.6 million shares. Pricing between $24-$26 per share could raise up to $624 million, with Circle benefiting from its portion of the proceeds. Demand already outstrips supply, reflecting strong market appetite despite Circle’s year-over-year net income decline.
The USDC issuer reported $1.68 billion in 2024 revenue and capital gains. J.P. Morgan analysts project the stablecoin market could reach $500-$750 billion, with Circle trading under the ticker "CRCL." Lead underwriters include J.P. Morgan, Goldman Sachs, and Citigroup.
US Tiger Securities notes Circle’s IPO valuation appears 25% lower than previous estimates, signaling a tempered market approach. This comes as FTX initiates its second round of creditor payouts amidst ongoing disputes—a reminder of crypto’s volatile landscape even as institutional interest grows.
