Overview
BlackRock Inc. is exploring the possibility of acquiring approximately 10% of the shares in Circle’s forthcoming initial public offering (IPO), as reported by Bloomberg.
Circle has announced its plans to offer 24 million Class A shares in its IPO, with 9.6 million coming directly from the company and 14.4 million from current stakeholders.
Key Points
- BlackRock is considering a stake while ARK Invest has stated its desire to purchase $150 million in shares.
- The estimated price for the shares is between $24 and $26, with trading expected under the ticker CRCL.
- BlackRock’s involvement, while significant, is still uncertain; it’s unclear if they will operate directly or through an affiliate, and they may ultimately choose not to invest.
Stripe’s background and relationship with Circle include managing the Circle Reserve Fund, a government money market fund that underpins 90% of the reserves supporting Circle’s USDC stablecoin, a significant player in the crypto market.
If BlackRock proceeds with the investment, this would further integrate traditional finance into the digital asset landscape, solidifying the role of stablecoins like USDC within the larger financial ecosystem. This IPO stands out as one of the rare opportunities for crypto-native entities to go public in the U.S. after a lengthy hiatus in the sector’s public offerings.
