Circle Secondary Offering of $1.3B for 10M Shares at $130
Circle, di US-base stablecoin pipo dem behind USDC, don file SEC registration for $1.3 billion secondary offering of 10 million Class A shares at $130 each. Di company go sell 2 million shares to fund general corporate purposes, but di old investors plan to offload di remaining 8 million, money wey no go directly benefit Circle. Di shares price na more than four times di $31 IPO price for June. Circle shares don experience sharp wahala—dem soar 235% to $83 for debut and peak at $298.99. After di announcement of di secondary offering, CRCL shares close down 9% at $139.23 and fall to $136.98 for pre-market trading. People wey dey observe talk say di capital raise go strengthen Circle balance sheet and support USDC growth, but big insider sales fit weigh down di stock short term, wey go give mixed signals for traders.
Neutral
Circle secondary offering dey combine strong fundamentals—dem raise $1.3 billion to support im USDC business and balance sheet—wit potential wahala from di sale of 8 million shares by ogbonge investors wey already dey. Di drop for share price wey happen after di announcement na short-term selling pressure, but di money wey dem put in go help di long-term growth for stablecoins and digital assets. Traders suppose expect mixed market reactions: short-term wahala plus possible downward pressure cos of dilution, balance out by better financial status and investor confidence for USDC.