The post Circle May Delay IPO Plans Amid Coinbase Partnership Concerns and Market Volatility appeared on BitcoinEthereumNews.com.

Circle’s decision to delay its IPO highlights the ongoing challenges in the crypto market, prompting critical discussions about its future strategy. Investors are closely monitoring how factors such as distribution costs and partnerships with exchanges like Coinbase influence Circle’s financial viability. As reported by credible sources, “Circle spent more than a billion in 2024 in distribution costs, most of which went to Coinbase,” raising concerns about its profitability. Circle plans to delay its IPO amidst rising costs and market volatility, underscoring challenges in the crypto landscape. Circle Delays IPO Amid Rising Costs and Market Conditions Circle, the issuer of the USDC stablecoin, is facing significant headwinds as it announces a delay in its Initial Public Offering (IPO) plans. This decision comes shortly after filing for the IPO, driven largely by concerns over distribution costs related to its partnership with Coinbase, which reportedly absorbs half of Circle’s residual revenues. Analysts at Ledger Insights highlight that this expense potentially constrains Circle’s ability to attract investors, as over a billion dollars was allocated to distributions in 2024. Market Conditions Lead to Reassessments of IPO Timing The ongoing market volatility, exacerbated by geopolitical tensions such as Trump’s tariffs, has created a less favorable environment for public offerings. Reports indicate that Circle is not abandoning its IPO plans, but is instead postponing filings to ensure a more advantageous market position. Investors are now looking for signs that Circle might renegotiate terms with Coinbase to enhance investor allure. MicroStrategy’s Bitcoin Holdings on the Rise Meanwhile, MicroStrategy is positioning itself to reach another significant milestone in its accumulation of Bitcoin. Having moved from holding 1% of the total supply to 2.5% in a matter of months, the company is now eyeing the 3% mark, which would require an additional 101,815 Bitcoin. With the current average cost of…

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Filed under: News - @ April 4, 2025 10:18 pm