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Stablecoin giant Circle Internet Group has taken a major step toward becoming a publicly traded company. On April 1, the issuer of USD Coin (USDC) filed its Form S-1 registration statement with the U.S. Securities and Exchange Commission (SEC), announcing plans to list its Class A common stock on the New York Stock Exchange under the ticker symbol “CRCL.”
However, the filing did not disclose the number of shares to be offered or the target price of its initial public offering (IPO). Circle’s attempt to go public comes after a previously abandoned effort in 2021 through a Special Purpose Acquisition Company (SPAC) merger. The company also filed a confidential IPO application earlier this year.
Despite regulatory uncertainties surrounding stablecoins in the U.S., Circle’s move signals confidence in the growing adoption of USDC. The company recently became the first stablecoin issuer to receive regulatory approval in Japan, launching USDC on SBI VC Trade on March 26.
Circle Records High Revenue, But Profitability Declines
Circle’s financial performance in 2024 highlights both its revenue strength and profitability struggles. The company reported $1.67 billion in revenue for the year, marking a 16% increase compared to 2023. However, net income fell sharply to $155.6 million—a 41.8% decline year-over-year.
One key reason for this drop is the substantial cost of distributing USDC. According to the filing, Circle paid Coinbase nearly $908 million in 2024 as part of its revenue-sharing agreement. This means the crypto exchange is earning more from USDC transactions than Circle itself, a trend that has raised concerns among analysts.
Matthew Sigel, head of digital asset research at VanEck, pointed out that these high costs help explain why Circle’s revenue increased while its EBITDA and net income took a hit.
Despite this, over 99% of Circle’s revenue continues to come from its stablecoin reserves, which are primarily backed by U.S. Treasury bills.
Crypto Holdings and the Road Ahead
Beyond its stablecoin operations, Circle also holds a diversified crypto portfolio. The company owns $6.2 million worth of Bitcoin, $3.3 million in Ethereum, and smaller holdings in projects like Sui, Sei, Aptos, and Optimism.
With an estimated $60.1 billion in market capitalization, USDC remains the second-largest stablecoin, trailing behind Tether (USDT) at $143.9 billion.
