With the rapid development of cryptocurrency and blockchain technology, Circle has grown to become a major player in digital payments and stablecoins like USDC. As a leading fintech company, Circle provides various digital asset services and its business continues to expand. For investors interested in the cryptocurrency sector, Circle represents an appealing investment opportunity. This article will provide an essential guide on how to invest in Circle stock once its merger deal with a SPAC is complete and it becomes a publicly traded company.
Understand Circle’s business model and competitive advantages
Circle issues USD Coin (USDC), the second largest stablecoin pegged 1:1 to the US dollar. The reserves backing USDC have reached over $50 billion, giving Circle substantial interest income like a mid-size bank. Circle has also launched crypto investing app Circle Invest, crypto OTC desk Circle Trade, and acquired major crypto exchange Poloniex. Its comprehensive suite of digital asset services and regulatory compliance gives Circle competitive edges.
Wait for Circle’s public listing via a SPAC merger
Circle announced plans to go public through a merger with a special purpose acquisition company (SPAC) called Concord Acquisition Corp in 2021. The deal values Circle at $9 billion and is expected to close in 2022 or early 2023 after shareholder and regulatory approval. This will allow public trading of Circle stock and direct investment.
Analyze Circle’s financials and valuation once it lists
After Circle goes public, investors can access its financial statements and valuation metrics. Key factors to assess are its user growth, USDC circulation, revenue from interchange fees and interest income, regulatory compliance, and comparisons to crypto peers like Coinbase. Circle’s price-to-sales ratio and growth projections will also determine whether its stock is undervalued.
Use both crypto exchanges and traditional brokers to trade Circle stock
Once Circle lists on a major stock exchange like the NYSE or Nasdaq after merging with the SPAC, investors can buy its shares via traditional brokers like Fidelity, eTrade and Robinhood. Leading crypto exchanges like Coinbase and Binance that provide stock trading may also offer Circle stock, giving convenient access for crypto-focused investors.
Circle presents an appealing way to invest in the crypto and digital payments sector as it eyes going public in 2022-2023. Analyzing its financials, valuations and growth outlook after listing will allow investors to make informed decisions on acquiring its stock. Both crypto exchanges and traditional stock brokers are likely to provide access when Circle conducts its hotly anticipated IPO.