Circle insiders sell $1.4B shares after 349% IPO surge
Circle share sale by insiders will offload 10 million shares, valued at $1.4B, just two months after the stablecoin issuer’s June IPO. The offering covers 8 million shares from early investors, including CEO Jeremy Allaire, and 2 million from Circle. JPMorgan waived its usual lock-up to enable the two-day marketed sale, which was oversubscribed and exceeds Circle’s original IPO proceeds.
Since the IPO, Circle’s stock price has surged 349%, peaking at $298.99 and holding above the initial level despite a recent pullback. Experts label the insider sale a rational cash-in exercise with minimal market disruption. The high-volume trading seen over the past two months suggests limited short-term price pressure, and analysts do not view the Circle share sale as a sign of fundamental weakness.
Neutral
Although the Circle share sale could create modest short-term downward pressure on stock, the oversubscribed offering and high trading volume indicate strong investor demand. The two-month surge in Circle’s share price and the absence of wider market concerns point to a neutral impact, as this profit-taking event doesn’t signal any fundamental issues. Traders should view the move as rational insider profit-taking rather than a catalyst for a sustained price decline.