Circle, the issuer of stablecoins, firmly denied reports suggesting it was in talks regarding a potential sale to either Coinbase Global or Ripple. The company remains focused on its initial public offering (IPO), which they filed for in April. A spokesperson for Circle emphasized, “Circle is not for sale. Our long-term goals remain the same.”
The speculation around a potential sale surfaced after Seeking Alpha referenced a paywalled article from Fortune, which claimed that Circle was aiming for a valuation of no less than $5 billion in negotiations. Previously, Circle rejected a takeover bid estimated between $4 billion and $5 billion from Ripple, citing the offer as insufficient. While Ripple remains interested in pursuing a deal, no new offer has been confirmed as Circle continues its IPO efforts.
Earlier in the year, Circle announced it was reviving its plans for a public offering after postponing it in December 2022, and has engaged investment banks to help facilitate the process. The timing of the IPO remains undecided.
The digital asset landscape has seen increased activity, fueled by a supportive regulatory environment and growing institutional interest. Ripple’s recent acquisition of prime brokerage Hidden Road for $1.25 billion and Coinbase’s plan to acquire crypto derivatives exchange Deribit for $2.9 billion reflect the ongoing trend of significant mergers and acquisitions within the industry.
In January, Circle also acquired Hashnote, which issues the USYC stablecoin, expanding its influence in the market amid rising institutional adoption. Circle CEO Jeremy Allaire characterized this merger as a pivotal development for a sector increasingly mirroring traditional finance’s market structures.
The continued interest from major players in the cryptocurrency realm highlights the industry’s vibrant and evolving nature, suggesting a promising future for digital assets as they gain mainstream recognition and acceptance.