Circle Persists In Pursuit Of Public Listings
Crypto payments tech company Circle and others are undeterred by the recent action taken by the Securities and Exchange Commission (SEC) against Coinbase, as they continue their pursuit of going public. However, industry executives acknowledge that the current environment presents challenges for companies considering a public listing.
A Circle spokesperson told Blockworks: “We will be taking steps to continue our journey to go public as soon as practicable.” A Circle job listing posted two weeks ago tasked with “assisting with potential going public SEC process” as well as “supporting the building out of our…
— Wu Blockchain (@WuBlockchain) June 10, 2023
Public Listing Plan
Circle CEO Jeremy Allaire had previously announced a plan to merge with a special purpose acquisition company (SPAC) in 2021 with the goal of becoming a public company. However, in December 2022, Allaire tweeted that Circle had not completed SEC qualification in time. Despite this setback, going public remains a crucial part of Circle’s strategy, as confirmed by a company spokesperson and a recent job posting.
The job listing for corporate counsel at Circle, posted two weeks ago, explicitly mentions assisting with the potential SEC process of going public and supporting the development of public company policies and practices. Circle remains committed to its plans despite the SEC’s lawsuit against Coinbase, which alleged that the publicly traded company had been operating as an unregistered exchange, charges that Coinbase has denied.
Galaxy Digital, another company in the crypto space, is also moving forward with its plans to go public. The company intends to become a Delaware-incorporated company and subsequently list on the Nasdaq. Galaxy Digital’s latest registration was submitted to the SEC in February and is currently under review.
Navigating Turbulent Waters
However, the current environment poses challenges for most companies looking to go public, according to Eric Risley, the founder of crypto advisory firm Architect Partners. Risley emphasizes that a strong business momentum and a positive or stable business environment are essential requirements for a successful initial public offering (IPO), which are currently lacking. As a result, the IPO path is likely to be postponed for most companies until these conditions change.
Kraken, a crypto exchange, is also considering an IPO and has hinted at its continued plans through a recent job posting for a senior corporate and securities counsel. The posting highlights “public company preparedness” as a focus area for Kraken’s legal team, indicating their intent to pursue a public listing. However, a spokesperson for Kraken did not provide further comment on the matter.
While the path to going public may be challenging in the current environment, Circle, Galaxy Digital, and Kraken are among the companies in the crypto industry determined to navigate these obstacles as they work towards becoming publicly traded entities.
