Circle, a leading issuer of USDC—a stablecoin tied to the U.S. dollar—closed its first day of public trading at $83.23 per share, marking a 168% increase over its IPO price of $31 set just a day earlier.
The strong debut highlights growing investor enthusiasm for cryptocurrencies, especially stablecoins, fueled in part by the Trump administration’s favorable outlook on digital assets.
First-Day Surge in Circle’s Stock Could Boost Valuations for Upcoming IPOs
The sharp rise in Circle’s stock on its first day of trading may encourage institutional investors to assign higher valuations to upcoming IPOs. Notable forthcoming listings include Omada Health, set to price on Thursday, and fintech firm Klarna, which is expected to go public next week.
Circle’s IPO price gave the company an initial market capitalization of $6.1 billion—below its $7.7 billion private valuation from 2021, when it secured a $400 million Series F round, according to PitchBook.
However, the strong first-day rally more than made up for the lower initial valuation. By the end of trading, Circle’s market cap (excluding employee stock options) had reached $16.7 billion, and the company raised approximately $1.1 billion through the IPO.
Circle Joins Growing Trend of IPOs Priced Below Private Market Valuations
Circle now joins a broader trend of companies going public at valuations below their previous private market peaks—a pattern seen with recent down-round IPOs from health tech firm Hinge, contractor platform ServiceTitan, and social media company Reddit. Still, startups looking for signs that the timing is right for a public debut will likely continue undeterred.
Circle’s successful IPO comes three years after its earlier bid to go public. In 2022, the stablecoin issuer had planned to merge with a SPAC in a deal that valued the company at $9 billion.
The company’s biggest external shareholders are General Catalyst, which owned about 8.9% of the total shares prior to the offering, and IDG Capital, holding 8.8%. Other notable venture investors include Accel, Breyer Capital, and Oak Investment Partners, as detailed in the S-1filing.
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