Circle's market cap surpasses USDC's supply
Date: 2025-06-25 Author: Henry Casey Categories: BUSINESS
On June 23, Circle's market cap reached $63.9 billion, surpassing the $61.6 billion in circulation of its flagship product, the USDC stablecoin, for the first time. The company's shares jumped 10%, peaking at $298, but closed at $263.5.
Circle went public on June 5, raising $1.1 billion at a valuation of $6.9 billion. On the day of the listing, shares with the ticker CRCL rose from $31 to $82, an increase of 168%. Since then, they have gained more than 750% in value.
However, not all experts are optimistic about these successes. John Ma, CEO of Artemis, noted that Circle's current multiples are too high: its capitalization exceeds its annual revenue by 32 times, its gross profit by 80 times, and its EBITDA by 152 times. According to Ma, such an overvaluation may indicate a developing market bubble.
An important factor contributing to the growth of shares was the approval by the US Senate of the GENIUS Act, a bill aimed at regulating the stablecoin market. Now it is under consideration in the House of Representatives. If the document is adopted, this could strengthen the position of Circle, which initially built its business within the framework of American regulation.
In addition, Circle is actively increasing its presence in the crypto industry: in recent weeks, the company added USDC support to World Chain and XRP Ledger. An alliance was also formed with Fiser, a payment solutions provider. The joint goal is to develop stablecoin-based tools for the financial sector and retailers. The Shopify platform has also introduced the ability to pay in USDC.
However, analysts warn that such a sharp rise may be followed by a correction. One of the largest investors that supported the IPO was Ark Invest, managed by Cathie Wood. On the day of the IPO, three of the company's funds purchased more than 4.48 million shares. Later, on June 23, Ark Invest sold part of its stake - 415,844 shares for $109.6 million, continuing to take profits. Earlier, another 342,658 shares were sold for $51.7 million.
Circle co-founder Jeremy Allaire previously spoke about the approaching technological revolution in the field of stablecoins, which may also fuel investor interest in the company.
