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Circle Internet Financial, the issuer of USD Coin (USDC), has filed for an initial public offering (IPO) amid analyst concerns over the company’s profitability.
The firm submitted an S-1 form to the Securities and Exchange Commission (SEC) yesterday, which, if approved, will see the company’s stock trade on the New York Stock Exchange under the symbol “CRCL.”
Not USDC Issuer’s First Attempt To Go Public
Circle, the issuer of the second-largest stablecoin by market capitalization, has been trying to go public since 2021. Its first attempt was a SPAC merger, which failed because the company did not complete the SEC’s “qualification in time,” said CEO Jeremy Allaire.
Reports at the time suggested that the SEC simply chose to not sign off on Circle’s plans, but the company denies these claims.
Circle then tried a different approach for its second attempt, filing a draft registration for an initial public offering with the SEC in January last year. This process dragged on until now due to the regulator’s hostile stance towards the crypto industry under former Chair Gary Gensler.
Analysts Highlight Profitability Concerns
While Circle’s move to file for an IPO marks a significant moment for the entire crypto industry, analysts have raised concerns regarding the company’s long-term prospects.
The company’s filing revealed 2024 revenues of $1.67 billion. While this is a notable increase compared to previous years, a closer examination shows challenges for the company.
VanEck’s Head of Digital Asset Research Matthew Sigel noted that Circle’s earnings before interest, taxes, depreciation and amortization (EBITDA) declined by 29%. Additionally, the company’s net income has dropped 42%.
🚨 Circle Files for IPO
$1.7B revenues (+16% y/y)
$285M EBIDTA (-29% y/y)
$155M Net Income (-42%) pic.twitter.com/qHldPakfRr— matthew sigel, recovering CFA (@matthew_sigel) April 1, 2025
Sigel attributed the decline in net income to rapid expansion, expensive service integrations as well as the discontinuation of revenue streams, including Circle Yield.
Agora CEO and co-founder Nick van Eck also noted in an April 1 X post that leading US crypto exchange Coinbase makes more money off of USDC than Circle does.
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