BlackRock Reportedly Plans to Invest in Circle Internet’s Upcoming IPO

BlackRock, Inc. (NYSE:BLK) is reportedly planning to purchase around 10% of the shares offered in Circle Internet Group Inc.’s upcoming IPO, according to sources familiar with the matter. The move highlights the growing intersection between traditional finance and the crypto sector.

Circle, the issuer of the USDC stablecoin, along with some of its shareholders, aims to raise up to $624 million through the IPO, as revealed in a filing with the US Securities and Exchange Commission on May 27. The filing also noted that Cathie Wood’s Ark Investment Management has expressed interest in acquiring up to $150 million worth of shares.

Circle officially filed for a public listing on the New York Stock Exchange on May 27. The offering includes 24 million Class A shares, of which 9.6 million are being offered by the company and 14.4 million by existing stakeholders. In addition, underwriters are expected to receive a 30-day option to purchase up to 3.6 million more shares.

According to Bloomberg News, investor demand for the offering has significantly exceeded the number of shares available. The IPO is expected to be priced on June 4.

BlackRock, Inc. (NYSE:BLK) currently manages a government money market fund on behalf of Circle, which holds 90% of the reserves backing the company’s USDC stablecoin. As of April 30, 2024, that fund held nearly $30 billion in net assets.

The structure of BlackRock, Inc. (NYSE:BLK)’s potential investment could vary, and the firm may proceed through an affiliated entity or ultimately choose not to participate, the sources said. Both BlackRock and Circle declined to comment on the matter.

BLK is up by nearly 26% in the past 12 months.

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