- Circle’s stock jumped 168 percent from its IPO price, closing at $83 after peaking near $104 during its NYSE debut.
- Coinbase, MicroStrategy, and Marathon saw declines between 2 and 5 percent amid shifting investor focus toward Circle.
- Analysts suggest the strong IPO could be part of a broader capital rotation as traders reallocate liquidity into new crypto-related listings.
Circle, the USDC stablecoin issuer, made a striking entrance on the New York Stock Exchange on Thursday. The stock opened at $69, soaring 168% from its IPO price of $31. At its peak, Circle’s stock touched $103.75 before closing the session at $83. The debut saw trading volumes near 46 million, far exceeding the publicly available float.
While Circle attracted strong investor interest, top crypto-linked stocks experienced heavy selling. Shares of Coinbase fell 4.61%, ending Thursday at $244. The drop comes after Coinbase recorded a 25 percent gain over the past month. Marathon Digital, a leading Bitcoin miner, also faced pressure, losing more than 5% by the close.
Strategy (MSTR) Drops Despite Bitcoin Accumulation
MicroStrategy, led by Michael Saylor, declined 2.46%, erasing gains made earlier in the week. The drop occurred despite the firm adding 705 more Bitcoins to its holdings. Over the past six months, MicroStrategy’s stock has underperformed other major Bitcoin-holding firms, including Japan’s Metaplanet.
The simultaneous drop in crypto stocks and Circle’s strong debut reflects a likely capital rotation. Market participants appeared to move funds from established crypto equities into newly listed firms. Analysts interpreted this trend as a typical liquidity reshuffle following a high-profile IPO.
Experts Urge Caution Post-IPO Surge
Despite the robust performance, financial experts advised caution. Former Goldman Sachs executive Dom suggested retail investors avoid entering at peak IPO prices. He noted that post-IPO performance often settles after a 90 to 180-day period of price discovery. Arthur Hayes, former BitMEX CEO, compared the current IPO wave to the 2017 ICO boom, indicating early signs of a potential mania phase.
Circle’s listing marks one of the most notable crypto IPOs in recent times, attracting strong attention on its first day. The broader market reaction highlighted a shift in sentiment, where newer entrants are briefly capturing more investor capital than legacy crypto firms. This development may set the tone for how Wall Street engages with future crypto listings.
