Circle, a Prime Unicorn 30 Index component currently valued at $5.785B, is pushing forward with its long-awaited initial public offering while simultaneously engaging in preliminary sale discussions with crypto giants Coinbase and Ripple, according to recent reporting from Fortune.
This development creates an interesting crossroads for the private unicorn market, as Circle’s choice between IPO and acquisition could signal broader trends for late-stage private companies in the crypto sector.
Circle’s IPO Plans vs. Acquisition Possibilities
Circle, the issuer of the popular USDC stablecoin, publicly filed paperwork in early April to proceed with its IPO. However, according to banking and private equity sources cited by Fortune, the company has recently participated in informal talks about potentially selling to either Coinbase Global or Ripple.
Circle is reportedly seeking at least $5 billion in any potential deal, matching the valuation it’s targeting for its public offering. While the company appears committed to its IPO path for now, one banking source told Fortune that “if Coinbase wanted to buy them, Circle would sell in a heartbeat.”
The Ripple Connection
Fellow Prime Unicorn Index component Ripple, currently valued at $12.1B following a dramatic secondary market price jump from $28.50 to $70 per share last month, which will likely place the company in the Top 30 Index at the next reconstitution, has already shown serious interest in acquiring Circle. Fortune confirmed earlier Bloomberg reporting that Ripple had previously offered between $4-5 billion for Circle, but this bid was rejected as too low.
Ripple brings substantial resources to any potential negotiation, with approximately 4.56 billion XRP (worth about $11.77 billion) and another 37.13 billion XRP (approximately $95.7 billion) held in escrow as of March 31, according to Ripple’s Q1 2025 report.
The Coinbase Factor
The relationship between Circle and Coinbase, a former Prime Unicorn Index component, runs deep. The companies launched the Centre Consortium together in 2018 to issue the USDC stablecoin. When that venture’s terms concluded in 2023, Coinbase received an equity stake in Circle while Circle assumed governance for USDC.
Their current revenue-sharing agreement heavily favors Coinbase, with provisions that:
- Split USDC reserve interest income 50/50 between the companies
- Grant Coinbase 100% of revenue when USDC is stored on its platform
- Give Coinbase significant operational control over Circle, including veto power on new partnership agreements
These factors make Coinbase a logical potential acquirer, with one source telling Fortune: “I feel like they’re one company.”
What This Means for the Private Unicorn Market
This situation highlights several important trends for private unicorn investors to monitor:
- Exit Optionality: Circle’s parallel pursuit of both IPO and acquisition paths demonstrates how top-tier private companies can maximize shareholder value by maintaining multiple exit options.
- IPO Market Signals: The recent successful IPO of trading platform eToro, which rose nearly 29% on its first trading day after raising $620 million, has likely boosted Circle’s confidence in the public markets. This positive sentiment could benefit other unicorns considering IPOs. However, it’s still a market in which we need some time to see how things will play out.
- Consolidation in Crypto: Both Ripple and Coinbase have been on acquisition sprees, with Ripple recently agreeing to buy prime brokerage Hidden Road for $1.25 billion and Coinbase acquiring derivatives platform Deribit for $2.9 billion. This suggests a maturing phase of consolidation in the crypto industry.
- Valuation Stabilization: Circle’s $5 billion valuation target suggests a stabilization of crypto valuations following the extreme volatility of recent years, providing more clarity for investors in private crypto companies.
What’s Next for Circle?
Circle has not yet set terms for its IPO, and the roadshow has not launched. While public commentary from Coinbase CEO Brian Armstrong was noncommittal, he acknowledged the company’s “pretty large balance sheet” and the benefits of being public when considering M&A opportunities.
For Prime Unicorn Index, Circle’s next moves will be significant, as the company’s decision could influence valuation multiples and exit strategies for other private crypto companies in the index.
We’ll continue monitoring this developing situation closely, especially as Coinbase joined the S&P 500 yesterday– a move that helped its shares surge more than 25% last week, though they remain below their December peak of $349.75 per share.
The Prime Unicorn Index tracks the share price performance of US private, venture-backed companies worth $1B or more. Reach out to learn more about our index-based solutions.
