Ripple Proposed an Acquisition of Stablecoin Rival Circle Internet Group Inc. for $4 Billion to $5 Billion

Circle rejected the offer for being too low, according to Bloomberg. The two companies held talks in recent months, though Ripple has not decided whether to make a follow-up offer.

According to Bloomberg, Ripple proposed to acquire stablecoin competitor Circle Internet Group Inc. for $4 billion to $5 billion. However, Circle reportedly turned down the offer as it deemed the valuation too low.

The two companies engaged in discussions over recent months regarding a potential merger. However, Circle's primary focus at present is on completing its initial public offering, which it filed for earlier in April.

A spokesperson for Circle declined to comment directly on the deal, citing regulatory quiet periods for the IPO. However, they mentioned that the company's "long-term goals remain the same."

Meanwhile, a spokesperson for Ripple declined to comment further.

Circle's IPO

Circle officially submitted paperwork for its IPO on April 1, aiming for a listing on the New York Stock Exchange (NYSE) with the ticker "CRCL." The company is reportedly hoping to achieve a valuation of $4 to $5 billion with the IPO.

Despite generating revenue of $1.68 billion in 2024, Circle's net income and EBITDA declined last year. This has led to concerns about high operational costs and slowing growth at the company.

The offer from Ripple comes amid a broader wave of dealmaking in the crypto industry as token prices recover and firms prepare for public listings.

Other crypto firms that are reportedly considering IPOs include BitGo, which is planning to go public through a SPAC merger with Payoneer at a valuation of $1.5 billion, and crypto exchange Gemini, which is planning a direct listing later this year.

Moreover, Charles Eisenstein, a writer and speaker known for his work on economics, culture, and spirituality, penned an opinion piece warning against the "unfolding catastrophe" of a new Bretton Woods system. Eisenstein argued that the existing system is failing, leading to a search for alternatives. However, he believes that the proposed alternatives, such as a crypto-based Bretton Woods, will ultimately be worse.

Finally, Bullish Global, a cryptocurrency trading firm backed by hedge fund giant Point72, is also considering an IPO and could apply to list as early as this quarter, according to two people familiar with the matter. The firm, which began operations last year, is known for its large-scale, systematic crypto trading and investing activities.