Circle Internet Group executives are moving swiftly to capitalise on gains in its shares since the stablecoin issuer went public in early June. The company announced on Tuesday a sale of 10 million shares, including 2 million from Circle and the remainder from shareholders such as CEO Jeremy Allaire. The sale is valued at approximately $US1.4 billion ($2.2 billion) at current market prices.
The offering comes sooner than anticipated, just two months after Circle’s initial public offering. Typically, lock-up arrangements would restrict insider selling until the end of the year. However, JPMorgan Chase & Co, the lead bank on the IPO with the authority to waive these lockups, is not impeding the sale. Circle’s stock has risen 349 per cent, and the company recently reported solid quarterly figures.
Circle is a financial technology firm at the forefront of digital currency innovation. It is known for its role as the issuer of USD Coin (USDC), a fully reserved, digital dollar stablecoin. Josef Schuster, the founder of IPO index firm IPOX Schuster, noted, “It’s an opportunistic move by them that makes sense and that’s how risk gets transferred into public market.”
The two-day marketed offering was reportedly oversubscribed and on track to price on Thursday, according to sources familiar with the matter. As of now, a representative for Circle has not provided an immediate response to requests for comments.
