Circle's stock price rose significantly on its first day of trading, providing early investors with substantial returns.

On June 5th, stablecoin giant Circle officially listed on the New York Stock Exchange, becoming another important participant in the traditional capital market after several crypto-related companies. This marks a significant milestone in the development of the stablecoin industry.

Circle's IPO strategy has been ultimately adjusted to a more aggressive plan. The issue price has been raised to $31, and the total number of shares issued has increased to 34 million, with total fundraising nearing $1.1 billion. The oversubscription ratio for this IPO reached as high as 25 times, reflecting strong market interest in Circle.

On its first day of listing, Circle's stock performed strongly. It soared to over $100 shortly after opening, triggering the circuit breaker mechanism multiple times. The closing price was $83.23, up 168% from the issue price, with a total market capitalization reaching $18.4 billion and a trading volume exceeding 47.78 million shares, amounting to approximately $4.014 billion.

From a market capitalization perspective, although Circle's closing market value on the first day did not exceed that of some peers, it has significantly surpassed that of other crypto-related companies. In terms of stock price rise, Circle's stock surged 168% on its first day, far exceeding the performance of similar companies on their debut.

Circle CEO Jeremy Allaire stated at the listing that the company has focused on building a trustworthy, transparent, compliant, and well-governed enterprise since its inception. Adhering to strict regulatory standards will further deepen Circle's commitment to these principles. He believes this is not only an important moment for the company but also a crucial juncture in the integration of the global economic system and the internet.

Some analysts believe that the phenomenon of Circle's stock price exceeding expectations on its first day is mainly due to the current popularity of the stablecoin sector and the previous underestimation of this field by many investors.

Circle has completed multiple rounds of financing to date, with a total financing amount exceeding $2.2 billion. This listing has also provided early investors with substantial returns. Based on the current market value, the paper return rate for Series C investors is as high as 91.78 times, Series D is about 43.7 times, and Series E is about 6.33 times. Even the later rounds of financing have achieved several times returns.

It is worth noting that Circle has chosen the conventional IPO path for listing, which means the company is willing to accept stricter scrutiny and compliance processes. At the same time, early investors, the founding team, and employees' shares usually face a certain period of "lock-up" to prevent concentrated cashing out in the short term from causing drastic fluctuations in stock prices.