Circle Lays Off 6% of Workforce Amid Bitcoin Price Surge
Circle Internet Financial, the issuer of the second-largest stablecoin by market capitalization, USDC, has laid off 6% of its workforce. This decision follows a recent surge in Bitcoin's price to $100,000 and a total crypto market cap of $3.69 trillion.
A Bloomberg report indicates that Circle, which had 882 employees in June, is making these cuts as part of a strategy to reduce expenses while investing in geographical growth and efficiency through artificial intelligence. A Circle spokesperson stated:
“This includes investing in teams and operational infrastructure that need to grow, while marginally reducing spend and some roles in other areas of the business.”
Circle plans to pursue an initial public offering (IPO) in the United States and submitted a draft registration with the Securities and Exchange Commission (SEC) earlier this year. CEO Jeremy Allaire confirmed that IPO plans are ongoing without seeking private market funding.
The potential for Circle's IPO may increase following Donald Trump's 2024 presidential election victory and his nomination of former SEC Commissioner Paul Atkins as the new SEC Chair, signaling a more crypto-friendly regulatory environment. Additionally, Circle is considering expansion into Hong Kong due to its favorable crypto policies.
Previously, Circle had reduced its workforce in July 2023 due to the impact of the crypto winter from 2022 to 2023.
Crypto Market Surge
Bitcoin recently surpassed the psychological resistance level of $100,000, reaching an all-time high of $103,900.47. As of now, Bitcoin is trading at $102,469.65, reflecting a 6% increase in the past 24 hours.
Simultaneously, stablecoin exchange flows, including USDT by Tether and USDC by Circle, have significantly increased, indicating that investors are converting fiat to fiat-pegged cryptocurrencies, contributing to the ongoing uptrend in the crypto market.