Original translation: Lei Jianping

USDC stablecoin issuer Circle (stock code: "CRCL") has recently opened its IPO and is preparing to list on the New York Stock Exchange this week. Circle's issuance range is between $27 and $28, issuing 32 million shares, with a maximum fundraising of $896 million. Among them, Circle will issue 12.8 million shares, raising up to $358 million; existing shareholders will sell 19.2 million shares, cashing out $538 million.

ARK Investment Management, LLC and its affiliated entities have expressed their intention to subscribe for up to $150 million of Class A common stock at the IPO price, with subscription terms the same as other purchasers in this issuance. Circle's target valuation has been raised from $5.65 billion to $7.2 billion. Circle CEO Jeremy Allaire stated, "For Circle, becoming a publicly listed company on the New York Stock Exchange is a continuation of our desire to operate with maximum transparency and accountability."

Previously planned to go public through a SPAC: Company valued at $9 billion

Circle races to the NYSE

Circle was founded in 2013 in Boston and has a product called Circle Pay, which provides fiat currency transfer services, also known as "the American Alipay." Circle collaborated with Coinbase, and in 2018, the two established the Centre Consortium to create USDC.

In August 2023, the Centre Consortium alliance was dissolved, and Circle acquired the remaining 50% stake in the Centre Consortium from Coinbase for a total price of $209.9 million, acquiring approximately 8.4 million shares measured at fair value, with Coinbase receiving Circle's equity.

After the acquisition, Centre became Circle's indirect wholly-owned subsidiary, and Circle fully controlled the USDC ecosystem. In December 2023, Circle dissolved Centre, and its net assets were distributed to another wholly-owned subsidiary of the company. Circle announced in June 2016 that it had raised $60 million in Series D funding, led by IDG Capital, which also led Series C. Breyer Capital and General Catalyst Partners continued to participate in the investment.

Circle's Series D funding also attracted several strategic investors from China, including Baidu, CICC, Everbright Holdings, Wanxiang, and Yixin, as well as two significant individual investors: former IBM Chairman and CEO Sam Palmisano and Glenn Hutchins, co-founder of SilverLake.

In May 2018, Circle announced the completion of $110 million in Series E funding, led by Bitmain. IDG Capital, as a co-investor in both companies and the lead investor in Circle's Series C and D rounds, continued to follow up in this round, with other investors including Breyer Capital, Accel, and new entrants Blockchain Capital and Tusk Ventures. On May 31, 2021, Circle announced it raised $440 million, with participants including Digital Currency Group, Fidelity Management and Research Company, and cryptocurrency exchange FTX.

Circle was valued at $9 billion in a transaction to go public through a special purpose acquisition company in 2022. The transaction concluded in December 2022. At that time, Jeremy Allaire expressed disappointment over the "overdue" proposed transaction, but the company still intended to go public.

Annual revenue of $1.676 billion

As of March 31, 2025, Circle held USDC valued at $59.976 billion, with an average USDC value of $54.136 billion. The prospectus shows that Circle's revenues for 2022, 2023, and 2024 were $772 million, $1.45 billion, and $1.676 billion, respectively; operating profits were -$38.12 million, $269 million, and $167 million.

Circle's business model is simple: the company issues USDC stablecoins pegged 1:1 to the US dollar and invests the $60 billion deposited by users in short-term U.S. Treasury bonds to earn risk-free returns. Circle primarily invests in U.S. Treasury bonds and cash, generating approximately $1.6 billion in interest income ("reserve income") in 2024, accounting for 99% of Circle's total revenue.

Circle's net income from continuing operations for 2022, 2023, and 2024 was -$760 million, $271 million, and $157 million, respectively. Circle's Adjusted EBITDA for 2022, 2023, and 2024 was $96 million, $395 million, and $285 million, respectively. Circle's revenue in the first quarter of 2025 was $579 million, a 58.6% increase from $365 million in the same period last year.

Circle's distribution and trading costs in the first quarter of 2025 increased by $144.6 million compared to the same period in 2024, a 71.3% increase, primarily due to an increase of $101.8 million in distribution costs paid to Coinbase, attributed to the increase in reserve income and its platform balance, as well as an increase of $42.5 million in other distribution costs related to new strategic distribution partnerships.

Circle's profit from continuing operations in the first quarter of 2025 was $92.94 million, a 77.6% increase from $52.32 million in the same period last year; net income from continuing operations was $64.79 million, a 33.2% increase from $48.63 million in the same period last year. Circle's Adjusted EBITDA for 2022, 2023, and 2024 was $96.28 million, $395 million, and $285 million, respectively; Adjusted EBITDA for the first quarter of 2025 was $122 million, compared to $76.26 million in the same period last year.

IDG Capital and Accel are shareholders

Circle's board chairman and CEO is Jeremy Allaire, CFO is Jeremy Fox-Geen, and president is Heath Tarbert. Before the IPO, Jeremy Allaire held 77.1% of Class B shares, with 23.1% voting rights; Nikhil Chandhok held 1% of Class A shares; Accel held 6.9% of Class A shares, with 4.8% voting rights; Breyer held 9% of Class A shares, with 6.3% voting rights;

General Catalyst held 12.8% of Class A shares, with 8.9% voting rights; P. Sean Neville held 22.9% of Class B shares, with 6.9% voting rights. IDG Capital held 12.6% of Class A shares, with 8.8% voting rights; Oak Investment held 7.5% of Class A shares, with 5.3% voting rights; FMR held 7.2% of Class A shares, with 5.1% voting rights; Elisabeth Carpenter held 2.8% of Class A shares, with 2% voting rights.

After the IPO, Jeremy Allaire held 78.9% of Class B shares, with 23.7% voting rights; P. Sean Neville held 21.1% of Class B shares, with 6.3% voting rights. Accel held 5.4% of Class A shares, with 3.8% voting rights; Breyer held 6.7% of Class A shares, with 4.7% voting rights; General Catalyst held 10% of Class A shares, with 7% voting rights.

IDG Capital held 10.4% of Class A shares, with 7.3% voting rights; Oak Investment held 5.9% of Class A shares, with 4.1% voting rights; FMR held 6.7% of Class A shares, with 4.7% voting rights; Elisabeth Carpenter held 2.1% of Class A shares, with 1.5% voting rights.