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Bitcoinist 2025-05-01 11:00:37

Ripple Attempts $5 Billion Takeover Of USDC Issuer Circle, Bid Rejected

Blockchain payment firm, Ripple Labs, has reportedly offered to acquire rival stablecoin provider Circle Internet Group for an estimated $4 billion to $5 billion. However, this initial bid was rejected by Circle as being too low. Circle Responds To Ripple’s Interest According to a Bloomberg report , Ripple remains interested in Circle but has not yet decided whether to make a revised offer. A spokesperson for Circle responded to inquiries about the potential acquisition by stating, “We do not comment on market rumors.” They added that due to the ongoing “quiet period” with the US Securities and Exchange Commission (SEC), further details about their corporate financial plans would not be disclosed. Circle’s long-term goals, however, are unchanged. This interest from Ripple comes on the heels of its recent acquisition of Hidden Road, a multi-asset prime brokerage firm , for $1.25 billion. This strategic move is aimed at enhancing Ripple’s capabilities in the stablecoin market, which has been gaining traction amid increasing demand for digital assets that maintain a stable value. Circle’s Second Attempt At Going Public Circle, known for issuing the USDC stablecoin, has experienced fluctuations in its market valuation. Last year, Circle was reportedly valued between $5 billion and $5.25 billion in secondary market trades, a significant drop from the $9 billion valuation achieved in early 2022 during an unsuccessful attempt to go public via a SPAC merger with Concord Acquisition Corp. Recently, Circle filed an S-1 registration statement with the SEC as it prepares for a long-awaited initial public offering (IPO). Reports suggest that Circle aims to achieve a valuation of $4 billion to $5 billion through this public offering , expected to be filed by the end of April. While the exact timing of the IPO remains uncertain, companies that file for an IPO generally begin trading shares about four weeks later, although some may remain in registration for months. This marks Circle’s second attempt to go public . The company previously announced plans for a SPAC merger in 2021, but regulatory issues arose when the SEC did not approve the proposed deal, leading to multiple extensions. If successful, Circle’s IPO could represent the largest cryptocurrency-related public offering since Coinbase went public in 2021 through a direct listing. Notably, financial giants JPMorgan and Citi served as advisors during Coinbase’s IPO process. The current political landscape may also favor Circle’s ambitions. Recent advancements in stablecoin legislation in Congress could provide a bullish signal for the company. The Senate Banking Committee has moved forward with a bill, and the House of Representatives is expected to vote on its version soon. Furthermore, pro-crypto sentiment from President Donald Trump, who has expressed a desire to sign stablecoin legislation by August, suggests potential regulatory support for the industry. As of this writing, Ripple’s associated token, XRP, trades at $2.20, recording a 6% surge in the fourteen-days time frame. Featured image from DALL-E, chart from TradingView.com

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