Circle’s IPO Surged Nearly 300% In Its First Two Days.

USDC issuer’s public listing becomes the strongest crypto IPO since Coinbase, raising $1.05 billion amid bullish sentiment.

Circle (NYSE: CRCL) has stunned investors with an explosive start to public life, surging nearly 300% over its first two trading days. The stablecoin issuer debuted on the New York Stock Exchange on June 5 at $31 per share and quickly soared to highs above $120 before closing Friday at $94.50.

This makes it one of the most successful IPOs for a fintech or crypto firm, outpacing the public market debuts of Airbnb, Meta, and Robinhood.

A Record-Breaking IPO Performance

• IPO Price: $31/share (above expected $24–$28 range)
• First Day Close: $83.23 (+168%)
• Second Day High: $123.51 (+298%)
• Final Close (Day 2): $94.50
• Total Raised: $1.05 billion
• Fully Diluted Valuation: $32.1 billion

Circle sold 34 million shares — 14.8 million newly issued and 19.2 million from existing holders. Trading volume triggered volatility halts, as investor demand overwhelmed expectations.

Why Investors Are Bullish

• Stablecoin Dominance: Circle’s USDC has a $61.5 billion supply and is increasingly used in digital payments, DeFi, and cross-border settlements.
• Supportive Regulation: The GENIUS Act, nearing U.S. congressional approval, could solidify the role of regulated stablecoins like USDC.
• Revenue Growth: Q1 2025 revenue hit $578.6 million, up 58% YoY. Most of it comes from interest earned on reserves.
• Big Backers: BlackRock, ARK Invest, Fidelity, and General Catalyst supported the IPO.

The Trump administration’s pro-crypto stance, coupled with strong market momentum, has also boosted investor appetite.

Risks Still Remain

Despite the hype, analysts warn that falling interest rates could squeeze Circle’s core revenue stream. With 90–99% of income tied to USDC reserve yields, macroeconomic shifts may hurt margins.

Other risks include:

• Regulatory changes, especially from central banks launching their own digital currencies.
• Future selling pressure from early investors once the 90–180 day lockup expires.
• IPO underpricing: Circle left an estimated $1.72 billion on the table, one of the highest gaps since 1980.

Market Impact & Sector Moves

Circle’s blockbuster listing rippled through the broader market:

• Coinbase (COIN): +2.7%
• Riot Platforms: +6.2%
• Marathon Digital: +3.1%

The IPO is seen as a green light for other crypto firms like Kraken, Gemini, and infrastructure players to explore public offerings. Ethereum, which hosts USDC, could also see renewed institutional confidence.

What It Means for Crypto [NFA]

Circle’s performance could reinforce stablecoins as key pillars of digital finance. With major backing, regulatory momentum, and rising integration into fintech, USDC’s footprint may grow far beyond DeFi.

This IPO might also:

• Attract more institutional capital into Ethereum-based protocols.
• Inspire renewed interest in regulated stablecoin innovations.
• Encourage crypto-native IPOs, especially from firms seeking U.S. market legitimacy.

Investors eyeing crypto-aligned equities or stablecoin infrastructure plays may find this moment a signal that traditional markets are finally warming up to digital assets — but the volatility isn’t gone.

As always, DYOR and proceed with caution.