Crypto rocket Circle gets off to a brilliant start on the stock market – 186% price increase!

Crypto rocket Circle gets off to a brilliant start on the stock market – 186% price increase!

Circle Internet Group (NYSE:CRCL) had an impressive debut on the New York Stock Exchange on Thursday. Shares opened at $69.50, well above the original offering price of $31. At the beginning, the price even rose by a remarkable 186 percent, causing quite a stir in the crypto sector. According to a report from Yahoo Finance, Circle raised a total of around $1.1 billion through the IPO and existing shareholders.

Circle's company valuation was around $6.8 billion at the start of trading. If the price rises to $88.88, the market capitalization could rise to around $19.6 billion, and including options and warrants it could even reach almost $23 billion. The price range for the IPO was increased several times, and the final fixing was above the original range of $27 to $28. While the lower target was $24 at the beginning of the week, it is now clear that demand is exceeding supply.

High demand and anchor investors

According to Bloomberg, the order books for the IPO were 25 times oversubscribed, signaling strong investor interest. Originally, 24 million shares were to be offered at a price between $24 and $26. Due to high demand, Circle increased the price range to $27 to $28 and expanded the offering to 32 million shares, which could bring potential revenue up to $896 million.

To promote stability in the first days of trading, Circle plans to allocate the shares primarily to long-term investors. BlackRock was named as an anchor investor and plans to acquire around 10 percent of the shares on offer. These steps are intended to consolidate the value of the shares in the future and ensure positive trading.

Background and market position

Circle is one of the few pure crypto companies listed on the stock exchange, alongside well-known names such as Coinbase, Riot Platforms and Marathon Digital. The board under CEO Jeremy Allaire, who originally founded the company in Boston in 2013, moved its headquarters to New York in early 2023. A previous IPO, which was supposed to take place via a SPAC merger, failed in 2022 due to regulatory hurdles.

For the first quarter of 2025, Circle generated a profit of $64.8 million on revenue of $578.6 million. In the same quarter last year, the figures were $48.6 million in profit and $365.1 million in sales. As the operator of the stablecoin USDC, which is pegged to the US dollar and serves as both a means of payment and a store of value, Circle also operates in a market that is heavily influenced by regulatory debates and technological innovations.

The developments surrounding the IPO demonstrate the growing importance of crypto companies in the financial sector and show that investors have high hopes for Circle's potential. The high demand could be an indication of strong growth and a positive market position in the future.

For more information on the background and developments of Circle's IPO, visit Yahoo Finance as well as Financial trends.