Recovering from the softness experienced in the early weeks of the year, IPO activity is gaining strength led by the healthcare and technology industries. Circle Internet Group is the latest tech firm to file documents with the Securities and Exchange Commission for an initial public offering. It is a financial technology company focused on building digital currency infrastructure, primarily through its stablecoin.
The company has applied to list its stock on the New York Stock Exchange under the symbol CRCL. Meanwhile, the exact number of shares being offered and the offer price are yet to be revealed. The team of underwriters in the offering is led by JPMorgan and Citigroup.
Proceeds
The company said it plans to use proceeds from the offering for investment in new products and capabilities; investment in expanding awareness, usage, and distribution of its products, and strategic acquisitions. The remainder of the proceeds will be used for working capital and other general corporate purposes.
As per documents submitted with the Securities and Exchange Commission, Circle Internet reported mixed results for fiscal 2024. Revenues and reserve income from continuing operations increased to $1.68 billion in FY24 from $1.45 billion in the prior year. Meanwhile, full-year net income decreased to $155.7 million or $0.30 per share from $267.6 million or $0.78 per share in FY23. Adjusted EBITDA was $285 million in 2024, down from $395 million in 2023, but higher than the $96 million in 2022.
The Company
Circle Internet was founded in 2013 by Jeremy Allaire and Patrick Sean Neville. It operates as a peer-to-peer payments technology company specialized in managing the stablecoin USDC, a cryptocurrency pegged to the US dollar. It is estimated that as of December 31, 2024, USDC has been used for approximately $20.0 trillion in on-chain transactions.
A few years ago, Circle Internet entered into a merger agreement with a special purpose acquisition company to enter the public markets, but the business combination was mutually terminated later, and the company recorded around $44 million in merger termination costs.
The unique business model, focused on disrupting the payments space through its products differentiates Circle Internet from other fintech companies. However, crypto-related regulatory uncertainties and growing competition in that area raise concerns about its prospects.
