Circle share offering at $130 raises $1.3B to back USDC
Circle share offering at $130 per share was priced on the NYSE under the ticker CRCL.
The deal covers 10 million shares with a 30-day option for 1.5 million more, raising $1.3 billion in gross proceeds from this capital raise.
Circle will use funds to strengthen its balance sheet, support USDC expansion, and fund general corporate purposes.
This Circle share offering underscores market confidence in USDC’s growth but brings dilution risk for existing shareholders.
Traders should monitor CRCL share performance, volume and potential volatility as the offering closes on May 15, 2024.
Neutral
While the $1.3 billion capital raise via share offering strengthens reserves backing USDC and demonstrates institutional confidence, it is unlikely to move USDC’s market price, which remains pegged. In the short term, the announcement may bolster sentiment and reduce peg–risk volatility. Over the long term, a stronger balance sheet could improve market stability for USDC but will not alter its stable value. Therefore, the impact on USDC price is neutral.