In 2022, Circle Internet Financial, the issuer of the stablecoin USDC, was valued at approximately $9 billion during an attempted public offering through a Special Purpose Acquisition Company (SPAC) deal. However, this SPAC deal, involving Concord Acquisition Corp, was terminated in December 2022 due to the U.S. Securities and Exchange Commission’s (SEC) delay in approval, and the market downturn following the collapse of FTX and the onset of the “crypto winter.”

Currently, Circle’s privately held stock is being traded in the secondary market with an implied valuation between $5 billion and $5.25 billion, according to sources familiar with the situation. This secondary market trading is limited and case-specific, primarily involving early investors seeking liquidity and Circle employees looking to monetize stock options prior to the company’s planned Initial Public Offering (IPO). The company is reportedly restricting trades to maintain a valuation floor of $5 billion.

Despite the substantial drop from its 2022 valuation, insiders advise against concern over this discrepancy, attributing the lower secondary market valuation to overall market conditions and a high demand for liquidity among investors. Secondary markets facilitate the trading of already-issued securities, including stocks and bonds.

Circle has not commented on these developments. However, the company’s growth is evident in its January report, titled “State of the USDC Economy,” which highlighted a 59% increase in USDC wallets holding at least $10, reaching around 2.7 million. Additionally, the number of transactions in 2023 totaled 595 million by the end of November.

In preparation for its IPO, Circle filed a confidential draft S-1 document with the SEC in January. The document does not specify the number of shares or the price range for the IPO, and the exact timing remains uncertain. Additionally, Circle plans to relocate its legal domicile from Ireland to the U.S., as reported by Bloomberg in May.

In summary, Circle Internet Financial’s journey to go public has faced significant hurdles, including a failed SPAC deal and fluctuating valuations influenced by broader market conditions. Despite these challenges, the company continues to grow and is taking strategic steps towards a future IPO, reflecting its ongoing commitment to expanding its presence in the financial market.

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