The post Circle crypto IPO: Can $5B valuation overcome 42% profit drop? appeared on BitcoinEthereumNews.com.

Circle crypto aims to list on the New York Stock Exchange under the ticker symbol “CRCL.” Analysts speculate that Ripple or Coinbase could acquire Circle after the IPO. Circle, the issuer of the USDC stablecoin, is making a bold move toward public trading with its recently filed initial public offering (IPO). The company has submitted its prospectus to the SEC, aiming to list on the New York Stock Exchange under the ticker symbol “CRCL.” This marks Circle’s second attempt at going public after a failed special purpose acquisition company (SPAC) merger in 2022 due to regulatory hurdles. Circle’s revenue spikes Circle, supported by financial giants JPMorgan Chase and Citigroup, is aiming for a valuation of up to $5 billion. Despite its rising revenue, concerns about Circle’s financial stability have surfaced as the company prepares for its IPO. In 2024, Circle reported $1.68 billion in revenue and reserve income, demonstrating consistent growth from $1.45 billion in 2023 and $772 million in 2022. However, its net income dropped significantly to $156 million—a 42% decrease from the previous year’s $268 million—highlighting a decline in overall profitability. Critics question Circle’s growth — Why? That being said, Matthew Sigel, Head of Digital Assets Research at VanEck, further highlighted a 29% drop in EBITDA, attributing it to rapid expansion, costly service integrations, and the discontinuation of revenue streams like Circle Yield. These financial challenges have raised questions about the company’s valuation and long-term sustainability, making its IPO a crucial test for investor confidence.  Remarking on the same, Sigel added, “Costs related to restructuring, legal settlements, and acquisition-related expenses also played a role in the decline in EBITDA and net income, despite overall revenue growth.” Echoing similar sentiments, Farside Investors noted, Source: Farside Investors/X Not everyone shared the same line of thought However, Wyatt Lonergan, General Partner…

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Filed under: News - @ April 2, 2025 10:29 am