Circle in the Crosshairs: Will It Go Public or Be Bought Out?
Circle, the issuer of the USDC stablecoin, recently filed for an initial public offering (IPO) on April 1, 2025, at a valuation of $4-5 billion, based on its S-1 filing with the U.S. Securities and Exchange Commission.
The company reported $1.678 billion in revenue for 2024, up 16% from 2023, and $157 million in net income, down 42%.
Initially planned for late April 2025, the IPO has been delayed and postponed due to economic uncertainty, including market reactions to tariff announcements on April 2, 2025, with no set timeline as of May 20, 2025.
This is the company’s second attempt to go public, following a failed $9 billion SPAC deal in 2022.
Circle Says “Not for Sale†Following Coinbase, Ripple Chatter
Recent reports show that the USDC issuer has also held informal talks with Coinbase and Ripple about a potential sale, also at a $4-5 billion valuation.Â
Ripple’s $4-5 billion offer, made on April 30, 2025, and comprising cash and XRP, was rejected as insufficient. Coinbase, a strategic partner since co-founding the Centre Consortium for USDC in 2018, holds an equity stake and revenue-sharing agreement, making it a logical buyer.
A banker suggested Circle would seriously consider a Coinbase bid.
However, Circle denied the sale reports on May 20, 2025, stating, “Circle is not for sale. Our long-term goals are unchanged,†leaving the status of any discussions unclear.
USDC Soars, but Market Woes Test Circle’s IPO Hopes
Circle operates in a changing crypto landscape, with USDC’s circulating supply rising 80% to $44 billion in 2024. Its market capitalization, which currently stands at $60 billion in May 2025 according to data from coinmarketcap, is behind Tether’s estimated $151 billion market capitalization.
Top stablecoins by market cap (Source: CoinMarketCap)
Regulatory developments, including SEC Chair Paul Atkins’ commitment to a “rational†crypto policy, boost Circle’s IPO chances. However, economic uncertainty, such as Nasdaq declines linked to tariff concerns in April 2025, has closed the IPO window.
A US-China tariff rollback on May 12, 2025, may ease some pressures.
Meanwhile, 2025 is looking promising for crypto IPOs, with Gemini and Kraken eyeing IPO listings as well.
IPO or Acquisition? Circle’s Big Decision Looms Large
The company’s simultaneous pursuit of an IPO and reported sale talks brings a strategic uncertainty, which could potentially unsettle investor confidence. The $4-5 billion valuation applies to both paths.
A successful IPO would bring the USDC issuer into the ranks of crypto public firms like Coinbase, while a sale to Coinbase or Ripple would potentially reshape the stablecoin or XRP ecosystems. While Circle has denied discussions of a sale, reports of sale discussions suggest some flexibility.Â
As of May 20, 2025, with the IPO delayed and no new developments, Circle’s future—whether as a public company or acquisition target—remains uncertain.
