Circular Entity Allegedly Turned Down $5 Billion Acquisition Proposal from Ripple Corporation
Ripple's Massive Bid for Circle's USDC: A Deal That Never Was
Guess what's been buzzing in the crypto world? It's the news that Ripple proposed to buy out Circle, the issuer of the well-known stablecoin USDC, offering a massive $5 billion. But, Circle ain't biting, folks!
Les see, Circle ain't exactly been saying no to all buyout offers, but $5 billion? That's just peanuts! circuit is estimated to have a staggering market cap of around $61.7 to $62 billion[1][2][3], so it's clear as day they believe their worth is way more than that.
So why ain't Circle jumping at the chance to merge with Ripple? Two words: IPO potential. Yeah, that's right, they're looking to launch an initial public offering (IPO) in the good ol' USA[1][5]. If the IPO goes well, they're expecting a higher valuation, baby!
Now, you might be wondering, how did Ripple know the exact price to offer? Well, rumors have it that Ripple took a cue from Matthew Sigel, a chap from VanEck. Sigel had previously suggested that Circle's IPO had a possible equity valuation of $4 to $6 billion[4]. So, Ripple was trying to match that valuation, but they clearly didn't do their math right.
Unfortunately for Ripple, they missed the boat on this one. But don't count them out! These folks have shown a real knack for acquisitions. Earlier this year, they snapped up the prime brokerage platform Hidden Road for a whopping $1.25 billion[4]. It's clear their expansion plans are serious, peeps!
Ripple has been making moves in the stablecoin market too. They entered the game last year with their own stablecoin, RLUSD, which directly competes with Circle's USDC. RLUSD market cap is currently at $318 million and has been steadily climbing over the past 3 months[4].
There's been some exciting developments with RLUSD, too. It was recently integrated with both Cardano and Chainlink, which is a pretty big deal[4].
All in all, with the SEC lawsuit nearing an end and Trump giving crypto a friendlier stance, Ripple's got its eyes on taking the US market by storm, baby. If they could get their hands on Circle's stablecoin expertise and market share, it'd be a powerful move, no doubt. But for now, we'll just have to wait and see if any more offers get on the table.
Just remember, it's always smart to do your own research, folks. And if you're thinking about making any moves based on this info, you might want to chat with a pro first. Happy crypto-ing, peeps!
Disclaimer
You know the drill. In line with Trust Project guidelines, BeInCrypto is committed to delivering honest, transparent reporting. We're aiming to provide you with accurate, up-to-date info. But it's always wise to verify facts yourself and consult with an expert before making decisions. Just a friendly reminder: our Terms and Conditions, Privacy Policy, and Disclaimers have been updated recently.
- Ripple's failed bid for Circle, the stablecoin issuer, valued at $5 billion, highlights the discrepancy between the two companies' perceived market values,Circle's being significantly higher.
- Despite being open to buyout offers, Circle's decision not to merge with Ripple stems from its intention to launch an initial public offering (IPO), aiming for a higher valuation.
- Matthew Sigel, from VanEck, is allegedly the source of Ripple's valuation guess, having suggested a possible $4 to $6 billion equity valuation for a potential Circle IPO.
- Ripple's acquisition strategy remains evident as they recently bought Hidden Road's prime brokerage platform for $1.25 billion.
- Ripple's entry into the stablecoin market last year with RLUSD, a direct competitor to Circle's USDC, currently has a market cap of $318 million and has shown steady growth over the past 3 months.
- Ripple's strategic moves in the stablecoin market include integrations with Cardano and Chainlink, positioning RLUSD as a credible player in the stablecoin market.
