Key Takeaways:
Investment firm Arca has divested its entire stake in Circle following dissatisfaction with the small allocation it received in the stablecoin issuer’s initial public offering (IPO). Additionally, Arca plans to sever ties with Circle, discontinuing the use of USDC in its transactions amid ongoing disputes.
Arca’s Chief Investment Officer, Jeff Dorman, announced the decision after criticizing Circle’s IPO process in an open letter published on June 5. In this letter, Dorman claimed that Circle marginalized Arca during the stock allocation phase of the IPO.
Circle, the operator of the widely utilized stablecoin USDC, made its debut on the New York Stock Exchange on the same day under the ticker symbol CRCL.
Arca’s $10M Investment in Circle Yields Just $135K Worth of Shares
Dorman reported that Arca had placed a $10 million order for Circle shares in April, which resulted in an allocation of only $135,000 worth of stock. In a now-deleted social media post, he expressed frustration, saying, “We pinged you separately two months ago indicating our order, and you thanked us for the support. If you were going to f*** us at the end, the least you could have done was tell us two months ago.”
Following this perceived slight, Dorman indicated that Arca would end its business relationship with Circle, including discontinuing the acceptance of USDC. “We will tell every single dealer we work with that we will no longer accept USDC,” he stated.
UPDATE. They did not.
In the spirit of transparency, Arca has sold its $CRCL shares. https://t.co/F37kxw77Ny
— Jeff Dorman (@jdorman81) June 6, 2025
Circle’s IPO represents a significant advancement in the integration of cryptocurrency with traditional financial systems. The company successfully raised $1.05 billion during its public offering, with its shares surging 167% on the first day of trading, closing at $82. The upward momentum continued the following day, with shares trading near $115.
With a market capitalization exceeding $61 billion, USDC has cemented itself as a critical liquidity tool within the cryptocurrency landscape.
While Circle’s transition to Wall Street has garnered significant attention, Dorman’s public backlash introduces a notable controversy to what could have been a purely celebratory occasion for the stablecoin industry.
Circle’s NYSE Listing Highlights Shift Towards Regulated Digital Finance
USDC, which Circle issues in collaboration with Coinbase, remains a leading stablecoin, bolstered by consistent audits and a commitment to regulatory compliance.
Circle CEO Jeremy Allaire characterized the company’s listing as “a significant and powerful milestone,” stating that “the world is ready to start upgrading and moving to the internet financial system.”
“All along, we’ve aimed to be trusted, transparent, compliant, ethical, and well-governed,” Allaire continued. “Meeting NYSE and SEC standards only reinforces that commitment.”
Market analysts anticipate that the funds raised from the IPO will assist Circle in expanding its infrastructure, strengthening partnerships globally, and navigating an increasingly intricate regulatory environment.
Circle’s public debut occurs during a time of renewed enthusiasm for crypto-related assets, with the company reporting $1.68 billion in revenue and reserve income in the previous year. Despite a drop in net income to $156 million from $268 million, Circle remains well-positioned for growth, benefiting from the rising adoption of USDC in digital payment and cryptocurrency markets.
The post Investment Company Arca Dumps Circle Shares After Scathing IPO Critique appeared first on Finance Newso.
