Ripple Attempts $5 Billion Acquisition of Circle; Offer Rejected

Ripple Labs made an unsuccessful bid of $4 to $5 billion to acquire Circle, the issuer of USDC, which holds a market value of approximately $61.7 billion. The bid was deemed undervalued by Circle, which is currently focusing on its IPO. Ripple, however, is still considering a potential acquisition and aims to grow without pursuing a public offering at this time, despite the competitive landscape in the crypto sector.

Ripple Labs has made headlines recently with its $4 to $5 billion bid for Circle Internet Financial, the issuer of the prominent USDC stablecoin. This report emerged from Bloomberg sources, including Matthew Sigel from VanEck, who stated Circle rejected the offer as undervalued—especially given its USDC holding a massive market capitalization of $61.7 billion.

Despite the setback, Ripple continues to eye Circle for potential acquisition, although it remains uncertain whether a revised offer will be made. The timing of this bid comes as mergers, acquisitions, and IPO activities within the crypto industry are on the rise, driven by increasing interest from investors and the climbing prices of several cryptocurrencies.

Several crypto firms, including Kraken, BitGo, and Gemini, are reportedly contemplating public listings in 2025, encouraged by a business-friendly atmosphere promoted during the Trump administration. Meanwhile, Circle filed with the SEC for its own IPO, aiming for a New York Stock Exchange listing with the ticker ‘CRCL’.

However, just days after the filing, concerns surrounding the macroeconomic landscape and recent US trade policies have led Circle to consider delaying its IPO plans. This situation isn’t isolated, as other notable companies like Klarna and StubHub are also re-evaluating their public offering timelines amid market uncertainties.

Adding to Ripple’s acquisition ambitions, the company has also recently agreed to purchase Hidden Road, a prime brokerage firm, for $1.25 billion. Ripple President Monica Long, in a conversation with CNBC, stated that going public is not currently on Ripple’s agenda. She highlighted that the company is in a solid financial position, boasting substantial cash reserves, negating the need for an IPO at this moment.

Long remarked that firms usually seek public listings to raise capital or enhance brand visibility—neither of which Ripple needs right now. The firm aims to focus on internal growth and strategic acquisitions instead of entering the public market. Despite settling its legal issues with the SEC, Ripple seems intent on solidifying its business model through acquisitions.

Ripple recently jumped into the stablecoin space with its own digital currency, RLUSD. Yet, it still has considerable distance to cover before rivaling Circle’s USDC, which commands a remarkable market cap of around $62 billion. By contrast, as of May 1, RLUSD’s market cap languished significantly at just $317 million, according to CoinGecko.