XRP: How Circle’s 25x Oversubscribed IPO Impacts Ripple

Ripple’s ambitions in the crypto space may face new challenges following the explosive investor demand for Circle’s IPO, a development that could complicate any future acquisition plans involving XRP and its issuer. The initial public offering of Circle, a major stablecoin provider, is reportedly over 25 times oversubscribed, highlighting the market’s intense appetite and shifting the balance of power amidst merger speculations.

Financial platform Zero Hedge revealed that investors are rushing to secure shares of Circle’s IPO, with demand exceeding available shares by a staggering 2,500%. This exceptional interest builds as Circle gears up to go public under the ticker “CRCL” on the New York Stock Exchange, officially scheduled for June 5, 2025.

To put this momentum in perspective, Circle initially planned to raise $624 million by offering 24 million Class A shares priced between $24 and $26. This translated to a target valuation hovering around $5.65 billion to $6.71 billion. However, due to intense early interest, the offer was expanded to 32 million shares, adjusting Circle’s projected valuation north of $7.2 billion. The oversubscription suggests that Circle may be undervalued at these prices, setting the stage for strong demand and potentially exceptional performance once trading begins.

Investment firms are taking note, with ARK Invest, led by Cathie Wood, reportedly committing $150 million in the IPO. BlackRock’s interest further amplifies the excitement, signaling institutional confidence in Circle’s future within the stablecoin ecosystem.

The IPO arrives at a pivotal moment for the crypto industry as the U.S. government moves forward on stablecoin regulation. Just recently, the U.S. Senate advanced the GENIUS Act, which aims to oversee stablecoin-related activity. President Donald Trump has voiced his intention to sign supportive legislation by August, creating a favorable regulatory tailwind that strengthens Circle’s market position just as it goes public.

Currently managing $62 billion in circulated USDC, Circle commands about 27% of the stablecoin market. For 2024, it reported $1.68 billion in revenue. However, its net income dropped to $155.7 million from $267.5 million the previous year, a detail that may warrant some investor scrutiny but hasn’t dampened enthusiasm for the IPO.

Amid these developments, Ripple finds itself at a crossroads. Rumors have circulated for months that Ripple has been pursuing Circle in a multibillion-dollar takeover attempt, reportedly offering as much as $5 billion initially. As competitive pressure mounted—especially from Coinbase—Ripple reportedly increased its offer to somewhere between $9 billion and $11 billion.

However, Ripple’s CEO officially denied that a $10 billion offer had ever been on the table, though he did not entirely dismiss the notion of acquisition discussions. On the flip side, Circle has categorically rejected the reports, claiming there were no active negotiations with either Ripple or Coinbase.

This IPO oversubscription changes everything. With heightened valuation prospects and strong market reception, Circle may now see little reason to entertain acquisition offers, especially at prior valuations. For Ripple, any hopes of acquiring Circle—or at least integrating more directly into the stablecoin landscape with USDC dominance—just became significantly more expensive and complicated.

Related: Expert Advice: Sell XRP If You’re Confused

Ultimately, this IPO affirms Circle’s credibility and positions it as a key autonomous player in the rapidly evolving digital payments ecosystem. For Ripple and XRP stakeholders, this means adaptive strategy and innovation will be essential if the firm hopes to compete or collaborate meaningfully in a post-IPO landscape where Circle has greater leverage and clearer independence.