Circle, a well-known stablecoin issuer based in the United States, has announced plans to conduct a secondary public offering involving the sale of 10 million shares. The sale price has been set at $130 per share, more than quadruple the initial offering price from June.
Details of the Stock Sale
Circle has filed with the U.S. Securities and Exchange Commission ( SEC ) to indicate its plans for selling 2 million Class A common shares as part of this offering. The remaining 8 million shares will be sold by current shareholders. Company officials clarified that proceeds from the shares Circle sells will be used for general corporate purposes while funds from other shareholders’ sales will not be funneled back into the company.
“Proceeds from the sale will be allocated to meet the general needs of our business. Amounts from shares sold by existing shareholders will not be transferred to our company,” Circle stated in their announcement.
Circle’s shares were first priced at $31 and began trading on the New York Stock Exchange in June. On the first trading day, the shares soared 235% to reach a high of $83. By June 23, the shares had achieved a record high of $298.99.
Market Reactions and Current Status
Fluctuations in the share price continue after the news of the secondary offering. On the last trading day, CRCL shares fell over 9% to close at $139.23. In pre-market trading, the stock price further declined by 1.63% to $136.98.
“We closely monitor market movements and post-offering price processes,” stated Circle’s finance department.
The volatility surrounding Circle’s shares underscores the sustained interest from investors in the company’s growth potential and financial performance. Large-volume shareholder sales are anticipated to influence stock pricing in the short term on the exchange.
Experts believe that Circle’s sale of 2 million shares, which will directly benefit the company, could bolster its stance financially. Existing shareholders aim to capitalize on market conditions to maximize their returns.
Circle’s future market performance remains closely tied to its activities within the stablecoin and digital asset sectors. Analysts are keenly observing how funds raised from the offering will be channeled into new strategies.