Chamath Palihapitiya Says Circle IPO Valued At $7 Billion Means It's A 'Genius' Buy For Coinbase, Here's Why

Tech investor Chamath Palihapitiya suggested Wednesday that Ripple Labs or Coinbase Global Inc. COIN acquiring Circle Internet Financial would be a “genius” move, given the potential value of the stablecoin market.

What Happened: Palihapitiya stated in an X post that the Circle, issuer of the world’s second-largest stablecoin USD Coin USDC/USD, could be a valuable acquisition for leading cryptocurrency companies.

He believed that Circle, which is 25x oversubscribed for its initial public offering and valued at around $7 billion, could be worth much more in the future. “If someone can buy it for even $12-13 billion, that's a steal, imo, for what this business could be worth in 20 years,” Palihapitiya added.

Coinbase and Ripple didn’t immediately return Benzinga’s request for comment on this suggestion.

See Also: Elon Musk, Who Called Trump’s ‘One Big Beautiful Bill’ A ‘Disgusting Abomination,’ Responds To Coinbase CEO’s Warning That Bitcoin Could Replace Dollar If Congress Isn’t Held Accountable

Palihapitiya also predicted a competition for stablecoin dominance among major companies like Stripe, Square (now Block, Inc. XYZ, Ripple, and Coinbase.

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“The company that builds the most efficient infrastructure and sells it for cheapest: cost-plus (with a thin margin on top) will probably take this market,” he added.

Why It Matters: Palhapitiya’s observation comes after Circe priced its IPO at $31 per share, above the previously marketed range of $27 to $28 per share. The company will now offer 34 million shares for $31 each when it debuts on the New York Stock Exchange on Thursday under the ticker “CRCL”, raising about $1.05 billion.

Circle will finally go public after an unsuccessful attempt in 2021. The 2021 SPAC deal was abandoned due to regulatory delays and market turbulence caused by the collapse of crypto exchange FTX.

Circle will join other cryptocurrency-related stocks like Coinbase and Block on Wall Street. Check out Benzinga Edge Stock Rankings score to see how these stocks rank in various metrics like Momentum, Growth and Quality.

Photo Courtesy: Kathy Hutchins on Shutterstock.com

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.