Circle officially applies for listing, USDC issuer reaches a new milestone

Circle has submitted an S-1 application to the U.S. Securities and Exchange Commission (SEC), planning to conduct an initial public offering (IPO) on the New York Stock Exchange. As the issuer of USDC, this move by Circle marks an important moment in the development of the stablecoin industry.

According to the application documents, Circle will issue Class A common stock, with the stock code "CRCL". The company will sell an undisclosed number of new shares, while some existing shareholders will also register shares for sale. The price range per share has not yet been determined. The main underwriters for the IPO are two well-known investment banks, which have a 30-day overallotment option.

Financial data shows that Circle's total revenue and reserve income for the fiscal year ending December 31, 2023, reached $1.68 billion, a significant increase compared to the previous two years. Revenue in 2024 will mainly come from interest on USDC-backed assets. The company's operating expenses for 2024 are $491.7 million, primarily for salaries, administrative expenses, and IT infrastructure.

In 2024, Circle achieved a net operating income of $156.9 million, which is lower than in 2023 but represents a significant improvement compared to the loss situation in 2022. The adjusted EBITDA was $284.9 million. The company also recorded a small amount of digital asset losses and other income.

Circle plans to use the proceeds from the IPO for product development, operating funds, business expansion, and potential acquisitions. After going public, the company will adopt a three-tiered equity structure, including Class A, Class B, and Class C shares with different voting rights. This structural design ensures that the company is not viewed as a "controlled company" after going public.

It is worth noting that Circle has previously delayed its listing plans multiple times, including canceling a merger with a SPAC. This IPO is the company's first attempt at a traditional listing path.

Circle's IPO plan coincides with the rising usage of stablecoins and increased regulatory scrutiny on the digital dollar infrastructure. However, the final implementation of the IPO is still subject to regulatory review and market conditions. Specific issuance details, such as the number of shares and pricing, will be disclosed in the updated filings prior to the listing.