Circle stock soars over 160% after IPO as stablecoin giant makes market debut

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Circle stock soars over 160% after IPO as stablecoin giant makes market debut.

stock :: 2025-06-06 :: source - yahoo finance

By Myles Udland

Circle's stock (CRCL) is still gaining on Friday after it exploded higher in its first day of trading, rising as much as 200% in Thursday's session after the stablecoin issuer's long-anticipated public market debut.

Shares rose almost 13% in pre-market trading to $93.50 apiece. At market close on Thursday, they settled at $83.23, up 168% from their IPO price of $31.

Trade in the shares was halted more than once on Thursday due to volatility, as the stock rose rapidly after opening at around $69 apiece. Circle's market capitalization stood north of $16 billion at end of the day's trading.

Circle issues the stablecoin USDC (USDC-USD), which is backed by the dollar. There was $60 billion worth of USDC in circulation at the end of the first quarter.

In the first three months of the year, the company's revenue and reserve income totaled $578.6 million, up 58.5% from a year ago. The company makes most of its revenue from "reserve income," which is what it makes on cash backing USDC that is held in banks or invested in Treasury bills. Circle's adjusted EBITA tallied $122.4 million in the first quarter.

In 2021, the company attempted to go public via SPAC before calling off the plans a year later.

Circle is the second-largest stablecoin issuer in the market behind Tether (USDT-USD), which has closer to $150 billion in circulation.

The company's IPO comes amid what's been a significantly more positive environment for cryptocurrency markets, with Trump's election — and his family's business involvement in the space — providing a tailwind to the sector. Bitcoin hit record highs north of $110,000 earlier this month.

Public companies have also ramped up their exposure to cryptocurrencies or pivoted their strategies entirely to mimic the bitcoin treasury technique employed most successfully by Michael Saylor at Strategy (MSTR) in recent years.