Lots of chatter about the Circle IPO filing today

Here's some commentary below:

"Circle earned ~$1.7b revenue in 2024 and paid out $900M+ to Coinbase as a distribution partner"

Circle earned ~$1.7b revenue in 2024 and paid out $900M+ to @coinbase as a distribution partner

That ~$1B going to Coinbase likely comes with little to no cost/opex to serve. At 10x earnings = $10 B mkt cap and likely contributes ~25% of $COIN valuation

For perspective - https://t.co/2Et3yaSgas

James Ho

Lots of chatter about the Circle IPO filing today

Here's some commentary below:

"Circle earned ~$1.7b revenue in 2024 and paid out $900M+ to Coinbase as a distribution partner"

https://x.com/jamesjho_/status/1907187974594240647?s=46

Executive compensation for Circle is interesting considering their income, revenue and profits 

Net Operating Income was $150M in 2024

$32M in exec comp in 2024 

Circle has paid ~135M in exec comp from 2022-24

Stay Curious // iixii // Head of Crypto at https://www.lazertechnologies.com/  // Prev: CoinDesk, Roc Nation // based @basedevo

"USDC was initially issued by the Centre Consortium which was a 50/50 JV between Circle and Coinbase. 

Circle bought out Coinbase's interest in 2023 for $210M cash + 3.5% of Circle equity (valued at ~$175M if Circle is worth $5B). That transaction effectively valued USDC at $770M (or 15% of Circle's targeted $5B IPO valuation).

As part of that restructuring, the two formalized the revenue sharing structure under a "Collaboration Agreement". 

TLDR: Circle's revenue share is more generous than it might be with normal arms-length partnerships given Coinbase's history in cofounding and bootstrapping USDC."

"USDC was initially issued by the Centre Consortium which was a 50/50 JV between Circle and Coinbase. 

Circle bought out Coinbase's interest in 2023 for $210M cash + 3.5% of Circle equity (valued at ~$175M if Circle is worth $5B). That transaction effectively valued USDC at $770M (or 15% of Circle's targeted $5B IPO valuation).

As part of that restructuring, the two formalized the revenue sharing structure under a "Collaboration Agreement". 

TLDR: Circle's revenue share is more generous than it might be with normal arms-length partnerships given Coinbase's history in cofounding and bootstrapping USDC."

https://x.com/shawnwlim/status/1907312186336428423

Full S1 here

https://www.sec.gov/Archives/edgar/data/1876042/000119312525070481/d737521ds1.htm