Circle's IPO Filing Faces Scrutiny Over Bitcoin Strategy and Financial Stability

Circle's IPO filing is under fire from industry experts who question its Bitcoin strategy and overall financial stability. As of December 31, 2024, Circle held only 73 BTC (approximately $6.78 million) and 1,746 ETH (around $5.82 million), significantly less than Tether's 92,000 BTC. The company's focus on altcoins, including 6.25 million Sei tokens and 2.3 million Sui tokens, totaling $18.7 million, raises concerns about its confidence in Bitcoin and Ethereum. Critics like Dragonfly's Omar Kanji also question Circle's $5 billion valuation, citing high compensation costs ($250 million annually) and reliance on potentially peaking interest rates. VanEck's Wyatt Lonergan points out that Coinbase takes nearly $900 million of Circle's $1 billion USDC-related income, further impacting its IPO prospects.