Circle, the company behind the second-largest stablecoin, USDC, is gearing up for its initial public offering (IPO) with a target valuation of $7.2 billion, or roughly $28 per share.
A Bullish Outlook
This ambitious valuation is partly attributed to a more positive regulatory climate for crypto under the current administration. Stablecoins like USDC aim to maintain a 1:1 value with the US dollar, unlike volatile cryptocurrencies. While Tether’s USDT holds the top spot in the stablecoin market, Circle is hoping to capitalize on its position and the current market sentiment.
Expert Opinions Vary
Michael Ashley Schulman, Chief Investment Officer of Running Point Capital, believes that recent events like memecoin hype and political involvement in crypto shouldn’t significantly impact well-backed stablecoins. However, a prominent crypto analyst, The Flow Horse, considers the $28 per share price “cheap,” predicting a higher valuation in the coming months. The analyst plans to acquire shares after the initial trading frenzy subsides.
BlackRock’s Big Bet
Adding to the excitement, the world’s largest asset manager, BlackRock, intends to purchase 10% of Circle’s shares when they become available on June 5th. BlackRock already manages the reserves backing USDC, demonstrating their confidence in the company.
Disclaimer: This information is for general knowledge and shouldn’t be considered investment advice. Always conduct thorough research before making any investment decisions.
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