BlackRock is Making a Major Move into the Cryptocurrency Market – Acquiring a Huge Stake in One of the Most Important Companies

According to the latest development, the world’s largest asset manager, BlackRock, plans to buy 10% of Circle Internet’s IPO shares.

Circle, the issuer of stablecoin USDC, and some of its existing shareholders, including co-founder and CEO Jeremy Allaire, are looking to raise up to $624 million from the IPO, according to a document filed with the U.S. Securities and Exchange Commission (SEC). The same document also notes that Ark Investment Management, led by Cathie Wood, has expressed interest in purchasing $150 million worth of shares in the IPO.

According to Bloomberg, Circle’s IPO is oversubscribed by a large margin, with pricing set for June 4.

BlackRock currently manages a sovereign money market fund that holds 90% of the reserves of USDC, Circle’s US dollar-backed stablecoin. According to an SEC filing, the Circle Reserve Fund has net assets of approximately $30 billion as of April 30, 2024.

It is stated that the details of the IPO may change and that BlackRock may not make this purchase directly, but through its affiliates or other investment vehicles, or may even abandon it altogether.

*This is not investment advice.