Circle share offering for $130 raise $1.3B to back USDC
Circle dey offer share for $130 each for NYSE under ticker wey dem call CRCL. The deal cover 10 million shares plus 30-day option to buy 1.5 million more, e go bring $1.3 billion gross proceeds from this capital raise. Circle go use the money to make their balance sheet strong, help USDC grow well well, and take care of general company matters. This Circle share offer show say market still get confidence for USDC growth but e fit cause dilution wahala for old shareholders. Traders suppose dey watch how CRCL shares dey do, the volume and how e fit get shakara as the offer go close for May 15, 2024.
Neutral
Di $1.3 billion wey dem raise through share offering don strong the reserves wey dey back USDC and e show say institutional confidence dey, e no too likely say e go move USDC market price because e still dey pegged. For short term, the announcement fit make people get better feeling and e fit reduce peg-risk volatility. For long term, stronger balance sheet fit improve market stability for USDC but e no go change the stable value. So, the impact on USDC price na neutral.