Will Circle Stock Come Around to an IPO in 2025?
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Explore ways to invest in Circle stock as the company approaches its IPO date in 2025. Linqto* removes barriers to private markets and gives you access to invest in pre-IPO companies. Circle is recently available on the platform.
Table of Contents
Recent Circle News
01/11/2024: Circle confidentially files for US IPO
11/07/2023: Stablecoin Issuer Circle Internet Considering 2024 IPO
08/21/2023: Coinbase buys equity stake in Circle
Older news…
About Circle
Circle is a Boston-based global financial technology startup best known as the curator of the USDC cryptocurrency stablecoin.
Its mission is:
To promote economic growth, reduce poverty, and improve financial stability by transforming the way money moves. Together, we can create a world that is accessible, efficient, and inclusive.
Cryptocurrency companies tend to bloviate their missions, and Circle is no exception. Like most other cryptocurrencies and exchanges, Circle aims to encourage the adoption of its coin (as opposed to the hundreds of others). It makes money by earning interest on the fiat currencies it converts to the stablecoin and charges small fees.
Non-crypto folks may struggle to understand why such coins are necessary when fiat currencies are sufficient for their daily lives.
The reason lies in the complicated legacy financial networks that facilitate international transactions. Moving money over international borders is traditionally slow and expensive. Circle aims to streamline the process, making the transaction instant and nearly free.
Another way to think about it — Circle’s stablecoin is not a speculative investment. It’s a utility to transform digital international financial transactions that could used by companies such as Revolut or other global financial services firms. Ripple is also launching a similar stablecoin.
Circle’s APIs enable developers and various financial institutions to build applications that bridge traditional banking and internet-native money transactions.
Questions have been raised about how Circle handles its reserve investments. In response, the company has increased transparency to give users the confidence to redeem the coin for a 1:1 ratio for U.S. Dollars or Euros.
Circle CEO Jeremy Allaire makes a case for stablecoin regulation in the following video.
Ownership
Circle is a venture-backed startup, counting several venture capital firms as investors. The founders and employees make up the balance of equity owners.
The company has raised about $1.2 billion in venture capital funding since its founding. The latest round was a Series F completed in April 2022, raising $400 million.
Notable venture capital investors include Coinbase, BlackRock, Goldman Sachs, Fidelity, Marshall Wace, Fin Capital, Accel, Baidu, FTX, General Catalyst, Oak Investment, Pantera Capital, and the Society for Worldwide Interbank Financial Telecommunication (SWIFT).
Valuation
The latest confirmed Circle valuation is $8.0 billion based on the Series F funding round completed in April 2022.
However, pre-IPO platform data provided by Hiive indicates Circle equity changed hands at a 40% discount to that valuation in early 2024.
IPO Potential
The Circle IPO date has yet to be determined. But Circle has filed confidentially for an IPO, as reported by Reuters on January 11th, 2024.
This follows a previous Bloomberg report in early November, 2023, that the company is talking to advisors and considering an IPO in 2024.
With the transfer of U.S. leadership in early 2025, crypto fans believe reduced regulations are on the way, calling for a fresh round of crypto IPOs.
Circle pursued a SPAC merger in 2021, but the deal fell through due to several internal and external factors, including the sharp decrease of many cryptocurrencies.
We’ll get clues about a potential Circle IPO date if the company hires an underwriter, files an S-1 (confidentially, or public), or if reporting discloses a Circle IPO date range.
How to Invest in Circle Stock
Most individuals are not eligible to own Circle stock via pre-IPO investing platforms because of the SEC accreditation requirement.
Furthermore, if and when the Circle IPO date arrives, it will still be difficult for most investors to acquire IPO shares due to high demand.
Therefore, the most likely way investors can own Circle stock is to wait for the IPO and buy shares after it goes public.
But savvy pre-IPO investors may find other opportunities to own the company before the IPO.
Here are some potential options to own Circle stock before, during, and after the IPO.
1. Access Circle Stock pre-IPO
Pre-IPO investment platforms may offer Circle stock for early purchase as employees or early investors seek to sell some of their shares before the Circle IPO.
Accredited investors may access shares, provided they are registered on the platform and receive notifications about their availability.
Monitor pre-IPO investing platforms such as Linqto (recently available), Forge Global, EquityZen, and Hiive for availability.
If an opportunity becomes available, expect to invest a minimum of $2,500 to $50,000. It’s free to sign up for data and deal alerts.
Pre-IPO investment platform memberships are free, but deal-specific minimum investment amounts may apply and vary.
Non-accredited investors can invest in pre-IPO companies via venture capital funds targeted at retail investors.
The Fundrise Innovation Fund (review) is the most promising for patient, long-term investors.
Circle is not a current holding in the Fund. But the company has indicated that financial technology (FinTech) companies will be a foundational target sector.
Please note: This is a testimonial in partnership with Fundrise. We earn a commission from partner links on AccessIPOs.com. All opinions are my own.
2. Participated in the Circle IPO through a broker
When a company goes public, investors can buy the stock during the IPO at the IPO price.
Before, only Wall Street’s top customers could invest in IPOs. But now, retail investors can access IPOs through participating discount brokers.
Some online brokers (like the ones listed below) allow investors to invest in IPOs for free, even if they have limited funds in their accounts.
Brokers negotiate exclusive access to IPO shares. The chances of getting access to specific high-demand IPOs increase by the number of brokerage accounts you have.
TradeStation has a more established track record of accessing more than 360 IPOs and secondary offerings via its partnership with ClickIPO.
Robinhood has the advantage of Silicon Valley networks and a history of getting allocations for high-profile IPOs.
Check out this list of best brokers for IPO investing to learn more about IPO access for retail investors.
3. Buy the stock after the Circle IPO
Waiting for the IPO has advantages, such as access to more established financials after the first quarter of trading. Pre-IPO investing has limited financials.
High-demand companies may have exaggerated valuations. Investors can benefit by attempting to sell near the peak but may suffer when prices revert to fair valuations.
IPOs often start with high valuations, but stock prices may fall after the first and second-quarter earnings reports expose significant numbers and trends.
For example, in 2021, Rivian and Robinhood were high-flying IPO stocks but fell more than 80% below their peak stock prices just six months after their respective IPOs.
Stock price declines can be excellent entry points for recent IPO stock. Avoid buying overvalued shares immediately after the IPO due to lockup expirations and earnings disappointments.
However, the most disruptive companies may perform better over a decade, so patience is key.
4. Invest Indirectly via Coinbase, BlackRock, or Goldman Sachs Stock
Coinbase announced the purchase of an undisclosed equity amount in Circle stock on August 21st, 2023. Investors can buy Coinbase stock to indirectly own Circle stock today.
Both BlackRock (BLK) and Goldman Sachs (GS) are other publicly traded companies with stakes in Circle stock. By owning either stock, you’ll have indirect exposure to Circle equity, albeit a minuscule amount.
Frequently Asked Questions (FAQs)
Is Circle Publicly Traded?
No. Circle is not publicly traded. It is a private startup.
What is the Circle Stock Price?
A public Circle stock price does not exist. It’s a private company.
Private stock price information is becoming more available and reliable based on pre-IPO marketplace data and other sources.
However, the stock price is only the value of one share. Like public companies, the underlying valuation metrics, revenue, profitability, and market sentiment toward private companies are more significant factors than the share price.
What is the Circle Stock Symbol?
We’ll learn what the Circle stock symbol will be if the company pursues an IPO. The Form S-1 filing with the SEC will contain the information, if and when it is released to the public.
The company has not indicated it is ready or interested in a traditional IPO. However, we can speculate about what the Circle ticker will be.
Here are some suggestions which seem likely and are available in the U.S.:
- CRCL
- CCLE
Where is the Circle IPO S-1 Filing?
The Circle S-1 filing has not been released to the public, and there is no indication of a confidential filing.
The document will become available if the company submits filings to the SEC and the regulatory commission approves and releases it to the public.
We’ll post a copy of the S-1 filing on this page when it becomes available.
You can monitor the most recent S-1 IPO filings on this website.
Circle News Archive
07/09/2022: The Financial Bubble Era Comes Full Circle
04/12/2022: Circle Announces $400M Funding Round
12/05/2022: Why Circle’s $9 Billion Plan To Go Public Was Dead On Arrival
07/08/2021: Circle to go public in SPAC deal
05/28/2021: Circle Completes $440 Million Financing
06/23/2016: Circle takes $60M to grow its social payments biz
Additional Resources
- 11 Fintech startups in the IPO Pipeline
Conclusion
Investors may be enthusiastic when they discover companies capitalizing on macroeconomic trends like cryptocurrency platforms.
But buying stock early on can be challenging for retail investors, despite wanting to own the company.
Pre-IPO platforms provide more investor opportunities. But venture capital investment is still primarily reserved for the ultra-wealthy, necessitating significant wealth to invest in seed and early funding rounds.
When pursuing IPO shares and early equity in Circle stock, have reasonable expectations.
Invest in pre-IPO and IPO companies with caution. Good luck if the Circle IPO is on your watch list.
Craig Stephens is a former IT professional who left his 19-year consulting career at the IRS to be a full-time finance writer. A DIY investor since 1995, he started Access IPOs in 2016 to provide a resource for ordinary investors pursuing access to IPOs. Craig studied Finance at Michigan State University and lives in Northern Virginia with his wife and three children. Learn more about Craig.
Risk Statement: Investing in IPOs and pre-IPO startups involves significant risk. Do not invest in companies based solely on what is included in this article. Only invest in IPOs and pre-IPO companies with money you can afford to lose. Access IPOs is for informational purposes only. Mentions of specific investments should not be construed as financial advice. Conduct personalized research and consider consulting with an investment advisor before investing.
