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We finally have a circle S-1, and honestly, it’s as juicy as I wanted.
It looks like a circle that will be listed on the New York Stock Exchange under the Ticker CRCL, but aims to be valued at around $4 billion to $5 billion.
Some people, including Robert Le from Pitchbook, point out that it is a rather low rating. In Le’s case, he thinks it can be intentionally lowered.
When it was released in 2021, Coinbase began trading at a valuation of nearly $100 billion. Obviously, the two companies are very intertwined, but they have different business models so don’t be too excited that the circles are approaching those levels.
especially If the Stablecoin Act is passed.
But Le told me that Roadshow would be a real test of Stablecoin publishers.
“My guess is that if everything goes well, its rating should be much higher towards the end of their roadshow, and it will be a positive signal,” especially if interest is higher than expected.
As pointed out by Wyatt Lonergan of Vaneck Ventures, publishers face questions about the evolution of the market and what could be the beginning of “Stablecoin Wars,” where everyone, including Big Banks, tries to issue their own Stablecoin.
“It comes down to how the market evolves and starts using stables of scale. If its stability is USDC, it will gain a strong multiple even if the take rate drops.
However, in terms of venture capital, strong demand for listings could open up new exit pathways for crypto investment, which would be a “shift that could drive additional capital inflows to Crypto’s startups.”
Circle, along with others like Kraken, Chainalysis and Fireblocks, appears to be just the beginning of the Crypto IPO boom. Adding pickups in M&A activities opens up the fluidity route for many.
