Circle Internet Financial, a Crypto Stablecoin USDC, presented paper works in early April to move forward with a long -awaited primary public offer. Nevertheless, there is an opportunity to subscribe to the general subscription in the department because the company has recently participated in unofficial talks to sell it Coinbase Global, the largest encryption exchange in the United States, or for the Ripple encryption company, according to four executives of banking and private stock shares. These people, who asked not to know the comment on private negotiations, said that the department seeks to obtain at least $ 5 billion, a evaluation targeted by public subscription.
One of the sources, one of the sources, said, “If Coinbase wants to buy it, then Circle will sell in the heartbeat.”
“Things are changing a week after a week,” another person said.
People said that the circle is still committed to the audience. In April, he will kick I presented publicly For the long -awaited general publication. The conditions of the public subscription have not yet been determined and the Roadshow show has not been launched.
Coinbase and Ripple did not return to comment messages. The company said on Monday in a statement sent via e -mail to “a circle not for sale. Our goals remain long as they are,” the company said on Monday. luck.
Coinbase and Circle have a history together Firing Concentrated consortium, a joint venture responsible for the Usdc Stablecoin version, in 2018. When the conditions of this project ended in 2023, Coinbase gained a share in Circle, while Circle assumed all USDC’s governance. luck He has I mentioned. Companies have continued to share revenues from USDC backup revenues, and in general, the arrangement contains many favorable provisions significantly for Coinbase.
The provision of the foundation line for Circle-Coinbase to each party Receive 50 % of the remaining revenues resulting from the dark reserves of the USDC Stablecoin Circle, according to the department S-1 file. However, Coinbase gets 100 % of these revenues if the USDC is stored on the Crypto Exchange platform. This scenario is likely to become more common in recent months, based on the last Coinbase profits that show increasing income from the USDC partnership (although some growth may be more stablecoin pie in recent months).
Meanwhile, Coinbase gives great control over Circle on the other hand. This includes a ruling that Circle cannot form any new agreements for third parties to affect Coinbase’s USDC revenues without the latter’s approval, and the last of that It gives Coinbase Control Control on its intellectual ownership in the event of insolvency. For these reasons, many Coinbase is the most logical buyer of the circle.
“I feel it is one company,” the second source mocked.
More than $ 100 billion in XRP
Ripple, however, comes armed with a wide war box. I have already offered the purchase of a circle for $ 4 billion to 5 billion dollars, but the offer was rejected as very low, which is what Bloomberg I mentioned In April and it was independently confirmed luck.
Any width of the Ripple of XRP is likely to consist, which is an encrypted currency creatureIn addition to criticism. The large public budget for Ripple includes about 4.56 billion XRP (currently $ 11.77 billion) and 37.13 billion XRP (95.7 billion dollars) on March 31, according to Ripple’s QS1 2025 XRP Market report.
On the other hand, Coinbase can be pushed with cash and shares. Coinbase had $ 8 billion in cash in its public budget as of March 31, according to the latest 10Q file. If it needs more cash, Coinbase, because it is a public company, can easily collect funds through several roads including debt issuance or sell shares through a public or private position. The banker said that although Ripple has a “somewhat meaningful public budget”, Coinbase is still more positively seen.
When asked about the acquisition of the potential circuit, Brian Armstrong, CEONBASE CEO, told Coinbase, Bloomberg On May 14, he was very excited about the success of Surke. Armstrong said: “They practice publicly do not change anything about our commercial relationship, but with regard to other deals that we may consider in the future, I mean, of course, it will be up to us and us, but you do not know, nothing we must announce today.”
Armstrong said that Coinbase is always looking for the chances of integration and purchases, noting the “very large public budget” for the stock exchange and the benefits of being a public company. However, “it is not swinging in every stadium” because the difficult part of buying a company is actually “successfully combined.”
The public subscription is bounced
Coinbase, which went general In 2021, through a direct list, it joins the S&P 500 on Monday, May 19. advertisement From its inclusion, Coinbase’s shares helped increase the increase of 25 % last week, but the stock is still at its highest level in 52 weeks at 349.75 dollars reached in December. On Monday afternoon, Coinbase shares were traded by about $ 265 per share, which implicitly means the maximum market of $ 56 billion.
Ripple and Coinbase have been obtained recently. Claiming in April Agree to the purchase Prime Brokerage Hidden Road for $ 1.25 billion. Earlier this month, Coinbase A $ 2.9 billion deal signed For Deribit, the derivative platform that allows traders to betting on future prices for cryptocurrencies such as Bitcoin. Coinbase also was the team’s cliff behind it Iron In January, the spindle bought, onchain ads and the support platform.
The public subscription market, which was largely suspended since 2021, has received some good news last week. Etoro, online trading platform, rose Almost 29 % on the first day of trading. the offer Arise 620 million dollars after pricing at $ 52 per share.
The powerful EToro performance is likely to enhance Circle’s confidence in the advertisement. But one of the investors noticed that the post -sales performance for public companies recently needs more time “to see how they (play).”
Leo Schwartz and Jeff Roberts contributed to this report.
This story was originally shown on Fortune.com
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