Circle stock surges again on Monday, marking its third straight day of gains following a highly successful IPO. The stablecoin issuer’s shares climbed as much as 15% during the trading session. However, it settled at $115 per share by the close. This price represents a 270% premium over its IPO debut price of $31.
This jump builds on strong momentum from the previous two days. Last Thursday, Circle’s stock saw an intraday surge exceeding 200% shortly after its market debut. The company’s impressive performance has attracted significant attention from investors.
Several factors support this rally. First, the broader cryptocurrency market has gained bullish momentum. Second, the current U.S. administration shows a friendly stance toward crypto regulation. Finally, new legislation in Congress aims to regulate stablecoins, offering more clarity to the market.
Brianne Lynch, head of market insight at EquityZen, explained to Yahoo Finance that these elements act as “tailwinds” for the stablecoin sector. She added that larger financial institutions considering their own coins also boost investor confidence.
Circle previously attempted to go public through a SPAC deal in 2021. However, the company abandoned the plan in 2022. This IPO marks a fresh start for the stablecoin issuer.
Circle is the creator of USDC, a dollar-backed stablecoin. By the end of the first quarter, $60 billion worth of USDC tokens circulated in the market. Circle ranks as the second-largest stablecoin issuer, trailing only Tether, which holds nearly $150 billion.
The company generates most of its revenue through reserve income. This income comes from profits on cash reserves backing the USDC tokens.
More publicly traded firms are increasing their crypto exposure. Many companies are shifting strategies to mirror the bitcoin treasury model adopted by Strategy (MSTR).
Bitcoin recently reached an all-time high above $110,000. On Monday, bitcoin traded near $107,000 per token.
Overall, Circle stock surges highlight strong investor interest and growing confidence in the stablecoin market. The company’s IPO success reflects broader optimism about digital assets and regulation.
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