Stablecoin issuer Circle targets $7.2 billion valuation in upsized US IPO
Crypto firm Circle Internet said on Monday it was targeting a valuation of up to $7.2 billion on a fully diluted basis in its upsized initial public offering in the United States, underscoring growing momentum in the stablecoin market.
The upsized IPO indicates strong investor appetite for crypto firms under U.S. President Donald Trump, who has not only promised friendlier regulations for the sector, but also has several crypto projects associated with him.
New York-based stablecoin issuer Circle and some existing investors are now looking to raise up to $896 million from 32 million shares priced between $27 and $28 apiece, up from their earlier offer of 24 million shares between $24 and $26.
Circle's dollar-denominated USDC, the second-largest stablecoin in the world, is expected to benefit from the impending stablecoin bill, which is expected to catalyze institutional adoption.
Stablecoins are designed to maintain a constant value, usually a 1:1 dollar peg, and are commonly used by crypto traders to move funds between tokens.
Circle's reserve income, its primary revenue source, from interest on the Treasuries backing its USDC coin, rose 55.1% to $557.9 million in the quarter ended March 31.
But distribution and transaction costs for the period jumped 68.2%, outpacing revenue growth for Circle, which distributes USDC primarily via its partnership with Coinbase and other third-party distributors.
J.P. Morgan, Citigroup and Goldman Sachs are the lead underwriters for the offering. Circle will list on the New York Stock Exchange under the symbol "CRCL".
Circle is poised to go public in New York later this week.
Poland’s fiscal deficit is front and center for investors
At more than 6% of economic output, it’s the largest in the EU after Romania’s. Election-campaign promises risk further deepening the budget hole.
The election “will hinder the implementation of necessary reforms and may favor the maintenance of an excessively loose fiscal policy,” said Piotr Bujak, chief economist at PKO Bank Polski SA. This “may worry foreign investors,” he said.
Thwarted Agenda
Tusk’s agenda has been largely thwarted by the outgoing president, who, like Nawrocki, is backed by the opposition Law & Justice party. The election of a more radical successor could exacerbate the paralysis.
“It is feared that this stalemate will continue,” Commerzbank AG currency analysts said. “Similarly, the disbursement of EU funds, from which Poland has benefited significantly in recent years, is likely to be further delayed,” given the conflict between Law & Justice and the EU Commission.
Piotr Matys, a strategist at In Touch Capital Markets Ltd., said the result creates the risk “that Tusk’s coalition may collapse, leading to early general elections,” which would otherwise be due in 2027. The premier may call a parliamentary vote of confidence in his cabinet.
The ballot could also make Polish policymakers more reluctant to extend interest-rate cuts, according to economists at Morgan Stanley, Citigroup Inc., and Banco Santander SA.
State Assets Minister Jakub Jaworowski, who oversees the government’s controlling stakes in seven of the companies in the WIG20 index, said Nawrocki’s victory will prolong a period of “elevated instability.”
“It has been difficult, but it will be now even harder,” he vowed to continue with the government’s agenda focused on improving corporate governance and building shareholder value.
This article has been published in bloomberg.com via Yahoo News
