Circle said in the regulatory filing that it expects to raise net proceeds of $309.4 million from the offering, or $542.6 million if the underwriters exercise their options.
Stablecoin issuer Circle Internet Group, Inc.’s (CRCL) shares came under selling pressure in Wednesday’s early premarket trading, signaling a potential reversal from the previous session.
The negative sentiment can be traced back to the company’s filing of an S-1 registration statement with the SEC regarding a 10 million common stock offering. The company would offer 2 million shares, and selling shareholders would offload the remaining 8 million shares.
The company went public on June 5, and since its listing on the NYSE, the Circle stock has nearly doubled to $163.21.
Circle said in the regulatory filing that it expects to raise net proceeds of $309.4 million from the offering, or $542.6 million if the underwriters exercise their options. The company plans to use the proceeds for working capital and general corporate purposes, including payment obligations, business investments, and potential acquisitions.
On Tuesday, Circle shares ended up 1.27% at $163.21 after the company reported forecast-beating results for the second quarter of the fiscal year 2025.
Sentiment toward the stock has remained upbeat amid President Donald Trump’s pro-crypto stance. The president signed the stablecoin bill, dubbed the Genius Act, into law in July, thereby bringing the dollar-pegged currencies into the regulatory net and rendering legitimacy to them.
On Stocktwits, retail sentiment toward Circle improved to ‘neutral’ (49/100) by early Wednesday, from ‘bearish’ a day ago. The message volume, however, surged as retail traders discussed the quarterly report and the stock offering.
A bearish watcher cautioned others to sell the Circle stock before it dropped below $100.
Another user, who is bullish on the stock, lauded the company for the “great” earnings but expressed disappointment with the stock offering. “Still – if the stock can ride this out, several upgrades will likely be incoming,” they said.
In Wednesday’s premarket, Circle stock fell 5.67% to $154.
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