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Circle stock surges 180% after IPO

Circle's IPO (CRCL) has been a roaring success.

By Mike Hesp
• 2 min read
Circle stock surges 180% after IPO

The IPO of Circle (CRCL) has proven to be a roaring success. The company behind the stablecoin USDC saw its stock price rise sharply on the first trading day.

CRCL opened at $69, briefly climbed above $100, and finally closed at $87. Compared with the original IPO price of $31, that's an impressive 180% gain on day one.

For many investors, these price swings bring Coinbase's market debut to mind. That one also started spectacularly on Wall Street. The COIN stock rose from $381 to $430, but slid below $200 within a month—a cold splash after the initial euphoria.

Whether Circle faces the same fate remains to be seen.

What’s interesting, anyway, is the close collaboration between the two companies. From the S-1 documents it shows that Coinbase receives 50 percent of the revenue Circle generates from managing the USDC reserves. A lucrative deal for as long as it lasts.

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