Circle Employees Face $3B Loss Amid CRCL’s 700% Surge, Palihapitiya Criticizes IPO Strategy

Circle's employees have absorbed a $3 billion loss despite the company's shares (CRCL) skyrocketing 700% post-IPO. The USDC stablecoin issuer sold 14.4 million shares at $31 each during its IPO, raising $446 million. These shares, now valued at $3.456 billion, were acquired by IPO banks and distributed to their top clients.

Billionaire investor Chamath Palihapitiya argues Circle WOULD have benefited more from a SPAC merger than a traditional IPO. He criticized the opaque nature of traditional IPOs, where value is often transferred to arbitrary intermediaries. "Banks show more opacity with IPOs," Palihapitiya noted, adding that media hype around first-day stock jumps can be misleading.

Circle's market cap nearly touched $50 billion within 15 days of listing, but the mandatory share sell-off left employees with significant losses. Palihapitiya emphasized that SPACs or direct listings offer clearer terms for both buyers and sellers, unlike traditional IPOs where negotiations are less transparent.