The company behind the second-largest USD-pegged stablecoin by market cap is naming its price for its upcoming US initial public offering (IPO).
According to a Reuters report, USDC-issuer Circle says it is aiming for a $7.2 billion valuation in its upcoming IPO – about $28 per share – partially because of the current administration’s friendlier outlook on crypto regulations.
US dollar-pegged stablecoins aim to maintain a 1:1 value with the US dollar. Tether’s USDT is the largest USD-pegged stablecoin by market value.
Says Chief Investment Officer of Running Point Capital, Michael Ashley Schulman,
“Issues regarding memecoin hype and more specifically Trump’s ventures into a namesake coin should not directly affect the outlook for stablecoins backed by hard currency.”
According to the widely followed pseudonymous crypto analyst The Flow Horse, the Circle IPO valuation is “cheap.”
“Circle IPO seems interesting to me.
I think $28 is going to look cheap over a multi-month period.
Outside of the initial event volume, I will be looking for price to develop a clean range and ideally start to establish a longer-term position.”
Bloomberg reports that BlackRock, the largest asset manager in the world, plans on accumulating 10% of Circle’s shares when they become available on Thursday, June 5. BlackRock is already the acting reserve manager for the assets backing USDC.
Follow us on X, Facebook and Telegram
Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox
Check Price Action
Surf The Daily Hodl Mix
 
Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.
Generated Image: Midjourney
