📊 Circle Internet Group, Inc. – IPO Overview

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📊 Circle Internet Group, Inc. – IPO Overview

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Jatslo wrote:📊 Circle Internet Group, Inc. – IPO Overview

Industry: Technology
Security Type: Class A Common Stock
Offering Type: Initial Public Offering (IPO)
Distribution By: The Issuer
Exchange: NYSE
Ticker Symbol: CRCL

Offering Details:
  • Expected Offering Size: 24,000,000 shares
  • Expected Price Range: $24.00 – $26.00
  • Expected Pricing Date: 06/04/2025 (after market close)
  • Indication of Interest Period: 05/27/25 to 06/03/25 by 4:00 PM ET
  • Lead Underwriters: J.P. Morgan, Goldman Sachs, Citigroup
💰 Valuation & Capital Structure
  • Implied Market Cap (Fully Diluted): Up to $6.71 billion
  • Estimated Gross Proceeds: Up to $624 million (including underwriters' option)
  • Share Allocation:
    • Issuer: 9.6 million shares
    • Selling Shareholders (Accel, General Catalyst, etc.): 14.4 million shares
  • Share Classes:
    • Class A – 1 vote/share (Public)
    • Class B – 5 votes/share, capped at 30% total voting control
    • Class C – Non-voting
📈 Financial Performance (2023–2024)
  • 2023 Revenue: $1.45 billion
  • 2024 Revenue: $1.68 billion
  • 2023 Net Income: $267.5 million
  • 2024 Net Income: $155.7 million
  • Primary Revenue Source: Interest on reserves backing USDC stablecoin
🏦 Business Model & Operations
  • Core Product: USDC – a fiat-backed stablecoin pegged 1:1 to the U.S. Dollar
  • USDC Circulating Supply: ~$60 billion
  • Revenue Generation: Primarily from yield on U.S. Treasuries and cash equivalents
  • Partnerships: Coinbase – receives over 60% of Circle's interest income through a revenue-sharing agreement
  • Competitive Landscape: Competes with Tether (USDT) and other stablecoin platforms
⚠️ Investment Considerations
  • Volatility in Interest Income: Earnings fluctuate with macroeconomic rates and reserve composition
  • Stablecoin Dependence: Circle's business model is centered around the performance and trust of USDC
  • Regulatory Sensitivity: Subject to evolving rules; current sentiment favors digital assets under recent federal leadership
  • IPO History: Previously attempted a SPAC deal in 2021; later withdrawn
  • Voting Control: Class B shares consolidate voting power among founders, which may concern some investors
🔗 Resources & Filings
Want further breakdowns? Ask for:
  • Comparison with similar IPOs (e.g., Coinbase, Robinhood)
  • Projected earnings per share (EPS) and valuation metrics
  • Long-term outlook for stablecoins in public markets
"The pessimist complains about the wind; the optimist expects it to change; the realist adjusts the sails." ~ William Arthur Ward
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