The world’s major stablecoin-powered cross border payments provider Ripple is interested in buying Circle, the USDC stablecoin issuer. The firm made a deal of $5 billion to purchase Circle. However, the stablecoin issuer declined this offer saying it’s too low. This acquisition offer made by Ripple has started a debate in the XRP community. Ripple’s the most reputable lawyer John Deaton, however, has explained why this offer was rejected.
Circle Believes Ripple’s Offer To Buy Circle Is Low
The pro-XRO lawyer John Deaton has appeared on the social media platform X to explain the main reason behind the rejection of Circle to the offer of $5 billion made by Ripple. He said that this rejection has come from Circle due to the fact that the company believes the price offered by Ripple is low and that the valuation of the company is going to surge in the long-term case scenario.
Circle filed its S-1 with the SEC on April 1, 2025, planning to list on the NYSE under the ticker “CRCL,” with JPMorgan Chase and Citigroup as lead underwriters. The IPO is expected this summer. Circle is aiming for a valuation between $4 billion and $5 billion for its IPO.… https://t.co/G8WijZzg9g
— John E Deaton (@JohnEDeaton1) May 2, 2025
Adding on to this, John Deaton said that the company believes that the value of Circle is like to cross the figure of $5 billion or most likely it can even go above the mark of $9 billion as well. The target of $9 billion valuation was set by Circle back in the year 2022 in a failed SPAC deal. Deaton thinks that the valuation of the IPO of the company is around $4B to $5B after it failed to reach the target of $9 billion in SPAC deal.
Circle Plans to Make Debut On NYSE
The stablecoin issuer is planning on making debut on The New York Stock Exchange (NYSE) under the ticker “CRCL”. The major investment banking companies JP Morgan Chase and Citigroup are the benefactors of the company.
Circle made $156 million in yearly profits in the year 2024. While on the other hand, it was able to make a revenue of $1.67 billion in the same year.
