BlackRock (BLK) Seeks 10% Ownership in Circle’s IPO, Teams Up with ARK as Possible Acquirer: Bloomberg

BlackRock Inc. is reportedly contemplating the acquisition of approximately 10% of the shares from Circle’s forthcoming initial public offering (IPO), as indicated by sources with knowledge of the situation.

The IPO documentation, publicly disclosed on Tuesday, reveals intentions to sell 24 million Class A shares, consisting of 9.6 million shares from Circle itself and an additional 14.4 million from current shareholders.

According to the same filing, ARK Investment Management, led by Cathie Wood, has shown interest in purchasing shares valued at up to $150 million during the IPO. The anticipated price range for these shares is between $24 and $26, and they are expected to be traded under the ticker symbol ‘CRCL’.

While BlackRock’s potential investment is noteworthy, its exact involvement remains uncertain. There are indications that BlackRock may choose to invest directly or through a subsidiary, and it has not ruled out the possibility of opting out of the investment entirely.

CoinDesk’s request for a statement from BlackRock did not elicit an immediate response.

The investment firm has an established partnership with Circle, managing the Circle Reserve Fund, which holds the majority of reserves that back Circle’s USDC stablecoin. USDC is a prominent cryptocurrency with a dollar peg, frequently utilized in trading and decentralized finance activities.

Should BlackRock proceed with its investment, it would signify a significant stride for traditional finance into the realm of digital assets, reinforcing the presence of stablecoins like USDC in the wider financial landscape.

This IPO could position Circle among the select few substantial crypto-related entities to enter the public markets in the U.S., especially following a protracted period of inactivity regarding public listings in the sector. Circle had previously sought to list via a SPAC merger in 2021, which was ultimately abandoned.