Circle Shuts Down Acquisition Rumors as Ripple and Coinbase Lurk
Another day, another crypto ’strategic partnership’ dance—this time with Circle playing hard to get.
Ripple and Coinbase eye potential moves as stablecoin giant Circle denies sellout talks. Because nothing says ’bullish’ like rivals circling your carcass.
Meanwhile, Wall Street analysts sharpen their pencils—some things never change.
TLDR
- Circle has officially denied all rumors about selling itself to Ripple Labs or Coinbase.
- The company stated it is focused on its long-term goals and plans to remain independent.
- Reports had suggested that Circle was exploring a sale valued at around $5 billion.
- Circle has resumed preparations for its IPO after delaying its initial plans announced in December 2022.
- The company began working with investment banks in January 2024 to support the IPO process.
Circle has shut down all rumors suggesting it plans to sell itself to crypto firms Ripple Labs or Coinbase. Reports recently hinted that the stablecoin issuer was exploring a potential acquisition at a $5 billion valuation. However, Circle confirmed it remains independent and focused on its long-term goals.
Circle’s IPO Efforts Continue Amid Acquisition Rumors
Circle has resumed preparations for its Initial Public Offering (IPO) after delays in its earlier public listing attempts. The company restarted its IPO process in January 2024, working with investment banks to underwrite the offering. Yet, despite progress, Circle has not announced an official date for its public debut.
The company initially shared IPO plans in December 2022 but paused due to unfavorable market conditions. Circle continues to pursue a public listing, seeking the same $5 billion valuation cited in the acquisition rumors. The spokesperson did not confirm the IPO timeline but emphasized Circle’s intention to remain independent.
The focus on the IPO signals Circle’s growth strategy rather than any shift toward being acquired. As the issuer of USDC, Circle plays a central role in stablecoin infrastructure and aims to expand this position. The company appears committed to achieving this through public markets, not by merging with competitors.
Ripple and Coinbase Showed Interest in Buying Circle
Rumors of Circle’s sale emerged last month when Ripple reportedly offered to acquire the firm for up to $5 billion. According to sources, Circle turned the offer down as too low for serious consideration. Shortly after, Coinbase entered the scene, initiating what many called a bidding war.
Further reports suggested Ripple increased its offer to between $9 billion and $11 billion, boosting market speculation. Analysts noted that Ripple could use cash and XRP tokens to finance the acquisition. However, despite this financial strength, Circle maintained its stance against any sale.
Meanwhile, insider reports described informal talks between the parties, yet Circle stayed firm on independence. While interest from both companies was evident, Circle did not advance any negotiations. Instead, it continued building its IPO strategy and public listing readiness.
Coinbase’s Ties with Circle Raise Speculation, but Sale Denied
Coinbase maintains a strong business relationship with Circle, dating back to their 2018 launch of the USDC stablecoin. Both firms co-founded the Centre Consortium and share profits generated by USDC reserves. This financial partnership gave Coinbase a minority stake and influence over Circle’s key decisions.
According to existing agreements, Circle cannot initiate partnerships that threaten Coinbase’s USDC revenue without approval. This clause WOULD give Coinbase a strategic edge in any potential acquisition deal. Despite this, Circle clarified that no such acquisition is being discussed.
Though Coinbase may hold contractual leverage, Circle stated it will not sell to Coinbase or Ripple. The company reaffirmed its commitment to its IPO and independent growth. Circle emphasized it remains focused on its long-term vision, which does not involve selling to external parties.
