YEREVAN (CoinChapter.com) — Circle Internet Group Files for IPO
Circle Internet Group, the company behind the USDC stablecoin, filed for an initial public offering (IPO) on the New York Stock Exchange. According to the April 1 Form S-1 filing, the firm plans to list under the ticker CRCL.
The document, submitted to the U.S. Securities and Exchange Commission (SEC), did not mention the number of shares or the offer price. The Circle IPO marks another attempt by the company to go public. It previously pursued a SPAC merger in 2021, which was canceled in December 2022. In January 2024, Circle submitted a confidential filing to the SEC.
The filing comes as other crypto firms, including Kraken and BitGo, also prepare for potential listings.
Circle Revenue Reached $1.67 Billion in 2024
The Circle financials show $1.67 billion in revenue for 2024, a 16% increase from the previous year. However, net income fell by 41.8%, down to $155.6 million. In 2023, Circle earned more, while in 2022, it reported a net loss of $761.7 million.
One key cost listed in the filing is the $908 million paid to Coinbase in 2024. Coinbase is Circle’s main partner in distributing USDC. This cost was higher than Circle’s own profits from the stablecoin.
Agora CEO Nick van Eck commented that Coinbase made more money from USDC stablecoin circulation than Circle did.
Matthew Sigel, head of digital asset research at VanEck, explained that high distribution costs affected both Circle’s EBITDA and net income.
Over 99% of Circle Revenue Came From Stablecoin Reserves
The filing showed that more than 99% of Circle revenue came from its stablecoin reserves. Circle holds assets like Treasury bills to generate income tied to USDC.
The company’s balance sheet also includes crypto holdings. Circle owns $6.2 million in Bitcoin, $5.6 million in Sui, and $3.3 million in Ether. Other holdings include Aptos, Sei, and Optimism. However, these do not represent the main revenue source.
Circle continues to use stablecoin reserves to earn most of its income. No change in strategy was outlined in the filing.
USDC Circle’s Public Listing Follows International Expansion
Circle recently expanded internationally. On March 25, it became the first stablecoin issuer approved in Japan. The next day, USDC went live on SBI VC Trade, a local crypto exchange.
The USDC stablecoin is now the second-largest by market cap. Data from CoinGecko shows it holds a $60.1 billion market cap. Tether (USDT) leads with $143.9 billion.
While the IPO filing focuses on U.S. financial data, the listing follows this regulatory milestone in Japan. The Circle public listing adds to the list of crypto firms entering public markets.