How to Buy Circle Stock in 2024
Circle is a leading financial technology company known for issuing USD Coin (USDC), the second-largest stablecoin by market capitalization. Founded in 2013 by Jeremy Allaire and Sean Neville, Circle has been at the forefront of integrating traditional finance with blockchain technology, providing a stable and reliable digital currency solution. As Circle prepares for a potential initial public offering (IPO), it has garnered significant attention from investors eager to participate in its growth.
How to Buy Circle Stock
Currently, Circle is a private company and does not trade on public stock exchanges. However, accredited investors can purchase shares through Hiive, a platform for investing in private companies.
Accreditation Requirements
To qualify as an accredited investor, you must meet one of the following criteria:
- An individual annual income of $200,000 or a joint income of $300,000.
- A net worth exceeding $1,000,000, excluding the primary residence.
- Status as a qualifying financial professional.
On Hiive, investors can browse listings of Circle stock, negotiate prices, or accept asking prices set by sellers, who may be current or former employees, venture capitalists, or angel investors.
Can Retail Investors Buy Circle Stock?
Retail investors cannot currently purchase Circle stock while the company remains private. They will need to wait for Circle’s IPO to invest. Circle filed for an IPO in January 2024, and it is anticipated that the company will go public soon, pending regulatory approval and market conditions.
Circle’s Growth and Market Position
Circle has established itself as a trusted name in the stablecoin market, with USDC offering a 1:1 peg to the US dollar. The stablecoin is widely used for cross-border payments, providing liquidity and transparency in the cryptocurrency market. As of 2024, Circle is valued between $5 billion and $5.25 billion, a decrease from its previous $9 billion valuation during a failed SPAC merger attempt.
Funding and Valuation
Circle has raised over $1.1 billion from prominent investors, including Goldman Sachs, BlackRock, Fidelity, and Marshall Wace. The company was valued at $7.7 billion in April 2022, but its valuation has since adjusted to reflect market conditions
Founders and Company Background
Jeremy Allaire and Sean Neville founded Circle in 2013. Allaire, who serves as CEO, has a background in technology and finance, having previously taken Allaire Corporation public and founded Brightcove. Sean Neville, initially Circle’s President and CTO, now serves on the board of directors and has co-founded Catena Labs.
FAQs About Investing in Circle
What is Circle?
Circle is a financial technology company that issues USD Coin (USDC), a stablecoin pegged to the US dollar, facilitating seamless digital transactions.
How can I invest in Circle before it goes public?
Accredited investors can purchase shares through Hiive, a platform for private company investments.
When is Circle expected to go public?
Circle filed for an IPO in January 2024, but the exact timing depends on regulatory approval and market conditions.
What are the risks of investing in private companies like Circle?
Investing in private companies involves risks such as limited liquidity, market volatility, and the uncertainty of an IPO timeline.
Who are the major investors in Circle?
Major investors include Goldman Sachs, BlackRock, Fidelity, and Marshall Wace