Circle Stock Soars 700% Post-IPO, but Employees Lose $3B in Missed Gains

Circle (CRCL), the company behind the USDC stablecoin, has gone from 0 to 700% in two weeks since its IPO. The company debuted at a $8B

Written by: Arslan Butt • Saturday, June 21, 2025 • 2 min read

• Last updated: Saturday, June 21, 2025

Quick overview

Circle (CRCL) has experienced a remarkable 700% growth in valuation, rising from $8B to $50B following its IPO.
Employees of Circle lost nearly $3B due to being forced to sell shares at a lower price before the stock surged.
Billionaire Chamath Palihapitiya criticized traditional IPOs for benefiting financial intermediaries at the expense of employees and long-term investors.
In contrast, Tron is opting for a SPAC merger to avoid the pitfalls associated with traditional IPOs.

Circle (CRCL), the company behind the USDC stablecoin, has gone from 0 to 700% in two weeks since its IPO. The company debuted at a $8B valuation and is now at $50B. This is in line with the GENIUS Stablecoin Act moving through the US House of Representatives.

Despite the crazy growth, investors are tempering their enthusiasm with a harsh financial reality: Circle employees missed out on $3B. This has sparked a debate about the fairness and transparency of traditional IPOs vs SPACs.

Employees Lost Billions in the IPO Process

According to billionaire Chamath Palihapitiya, Circle employees were forced to sell 14.4M shares at $31 each ($450M) to meet IPO requirements. But once Circle’s stock went up, the value of those shares would have been $3.45B, a loss of nearly $3B.

Palihapitiya criticized the traditional IPO model on X (formerly Twitter) saying that big banks use this to reward select clients with early access to discounted shares – leaving employees and long term investors shortchanged. He said:

“It was a $3B gift from the employees and investors of Circle to people they don’t know, will never know, and have nothing to do with their journey.”

Key points from Chamath’s thread:

Traditional IPOs benefit financial intermediaries more than company insiders.
SPACs and direct listings offer clearer, more negotiable value transfer.
Employees bear the cost of outdated public listing mechanisms.

Tron Opts for SPAC, Avoids IPO Pitfalls

Tron founder Justin Sun is taking a different approach and going the SPAC route. Tron Group will merge with SRM Entertainment, a Nasdaq listed entity, to form Tron Inc. This will allow them to sidestep the financial and structural issues with traditional IPOs.

The reverse merger will be managed by Dominari Securities, a boutique firm linked to former President Donald Trump’s associates. Once public, Tron Inc will launch the Tron Reserve and expand its role in the blockchain ecosystem.Tron avoids the IPO pitfalls.

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ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.