Circle Shares Rise 750% Post-IPO, Market Cap Reaches $60 Billion
Circle's shares (CRCL) reached a record high on Monday, climbing 22% to nearly $299 before closing at approximately $263, a 9% increase for the day. Since their IPO earlier this month at $31, shares have surged 750%.
Key points include:
- Circle's market capitalization peaked around $60 billion, close to the $61.3 billion of its USDC stablecoin.
- The company is approaching the market cap of Coinbase (COIN), currently valued at about $78 billion.
- The U.S. Senate passed the GENIUS Act, promoting regulation for stablecoins and potentially expanding the market significantly.
- Analysts indicate that the stock's valuation multiples are extremely high: 32x revenue, 80x gross profit, 152x EBITDA, and 285x earnings.
- Some analysts caution that the rally may exceed underlying fundamentals.
USDC remains the second-largest dollar-pegged token in circulation, widely utilized in exchanges and DeFi protocols.