Circle Denies Reports Suggesting It Is Engaged in Informal Discussions Regarding a Potential Sale to Either Coinbase or Ripple

Circle, the issuer of the USDC stablecoin, has firmly denied reports suggesting it is engaged in informal discussions regarding a potential sale

Circle, the issuer of the USDC stablecoin, has firmly denied reports suggesting it is engaged in informal discussions with either US-based crypto exchange Coinbase (NASDAQ:COIN) or blockchain payment company Ripple (NYSE:PYPL) regarding a potential sale of the company.

This denial comes in light of a report by PYMNTS, which highlighted that Circle is currently focused on completing its initial public offering (IPO), which it initially disclosed in April.

Circle Focuses On IPO Despite Ongoing Acquisition Interest

A spokesperson for Circle confirmed to the news outlet that the company is not for sale and that its long-term goals remain the same. This statement follows claims made by Seeking Alpha, which referenced a paywalled article from Fortune.

The report by Fortune, written by Jane Street's Manuel Alvarez, Jr., stated that people familiar with the matter said Coinbase and Ripple were among the companies that approached Circle in recent months about a potential acquisition. However, according to the report, executives at Circle were interested in an IPO valuation of at least $5 billion.

Earlier reports had indicated that Circle rejected a takeover bid from Ripple, which was in the range of $4 billion to $5 billion, as the cryptocurrency firm's executives deemed the offer too low. While Ripple is still interested in acquiring Circle and may make a new offer, Circle is pressing ahead with its IPO plans.

Circle’s IPO plans have seen a resurgence following a previous delay in December 2022. The company announced on April 1 that it had engaged investment banks to underwrite the IPO, although the exact timing for the public offering has yet to be determined.

This move follows a period of megadeals in the cryptocurrency sector, largely driven by a crypto-friendly administration under President Donald Trump, which relaxed regulations in the US.

Ripple, Coinbase, Pursue Major Growth Strategies

In recent weeks, Ripple has been focused on expanding its operations. The company completed the acquisition of prime brokerage Hidden Road for $1.25 billion, making it the first cryptocurrency firm to own and operate a multi-asset prime broker.

Coinbase, on the other hand, is aiming to strengthen its position in the global derivatives market with the pending acquisition of Dubai-based crypto derivatives exchange Deribit for $2.9 billion, which is expected to close in the second half of 2024.

In addition to its IPO endeavors, Circle has also been pursuing strategic acquisitions. Earlier this year, on January 21, the company announced its acquisition of Hashnote, the issuer of the USYC stablecoin, which is incubated by Cumberland Labs, the largest tokenized treasury and money market fund worldwide.

The stablecoin issuer’s CEO Jeremy Allaire noted that this acquisition would unlock significant potential in a market being rapidly adopted by institutions, with participants expecting market structures to be built out like those in traditional finance.

At the time of writing, XRP, the fourth-largest cryptocurrency in terms of market cap, is trading at $2.31, failing to capitalize on Bitcoin’s (BTC) momentum after reaching a new all-time high, with the altcoin registering losses of 9% in the past fourteen days.