Circle S-1 filing

Centralised institution Circle going trad, it was to be expected. And then this boring American insignificant government org SEC, where a part of crypto space is always so happy to get approval from. Hello, we are building a world computer here! ;)

Some interesting numbers here:

Yeah coming back here to also say that I‘m surprised how modestly Circle is evaluated. Here‘s ChatGPT with some great insights:

Circle is targeting a valuation between $4 billion and $6 billion for its IPO, based on its recent SEC filing. This range reflects an EBITDA multiple of approximately 13x to 20x, aligning with fintech peers like Coinbase and PayPal . 

Key Financials (2024):

• Revenue: $1.68 billion 

• Net Income: $157 million 

• USDC Circulating Supply: $44 billion 

Considerations:

• Circle incurred over $1 billion in distribution costs, with $900 million paid to Coinbase due to a revenue-sharing agreement. 

• This agreement grants Coinbase 100% of interest on USDC held on its platform and 50% on USDC held elsewhere, potentially limiting Circle’s profitability and flexibility until at least 2029 . 

Despite these challenges, Circle’s position as the issuer of USDC—the second-largest stablecoin with a $60 billion market cap—positions it as a significant player in the stablecoin market . 

The IPO is anticipated to raise approximately $750 million, with trading expected on the NYSE under the ticker CRCL .