Circle’s IPO Buzz: Can Shares Really Hit $300?

$300.

That's what some in the crypto world are speculating Circle could reach.

Now Circle started trading here a few weeks ago at the New York Stock Exchange and is at new highs this morning after spiking on Friday.

In New York morning trade, Circle shares are rallying, and we are looking at it hovering right around the 159 level considering the company.

Originally sought a valuation of as low as $24 a share, $300 seems like a hefty price target.

Well, the SEC has wrapped up its crypto task force roundtables.

Its leader Paul Atkins, Hester Purse, and Mara used the meetings as a way to express their desire to ease DI restrictions.

The agency wants to provide.

More clarity surrounding blockchain to crypto traders.

Well joining me on this Monday morning to weigh in is Kyle Chasse, CEO at MV Capital.

Good morning, Kyle.

Thank you so much for joining us.

Well, Circle's IPO generated a lot of buzz over here on Wall Street.

So what is your reaction and thoughts of a price target on shares of that company at $300?

Well, I think that depends on, on exactly, you know, what's going to happen with Circle, but I think right now the primary, you know, the primary use case is the USDC stablecoin and with the coming uh GI Act that we have in Congress right now.

Very likely to pass bipartisan support, you know, that will only open up the potential revenue for the company a lot more.

And so right now it's trading at a pretty high price earning ratio and so at the current current level, it might be some might say it's overbought.

However, when we look at the potential for stablecoins currently sitting a total market cap of $250 billion 251 billion dollars.

And Circle's share of that is about $61 billion and I would expect now that we have the US leading the way with creating a legal framework for stablecoins, this is going to open up the entire sector tremendously and we could see a lot more, a lot more.

Total market cap growth in USDC and therefore the way that Circle makes money is just putting that those cash deposits and short-term treasuries usually, uh, which is the easiest way for them to generate money.

You know, if you look at, if you look at tether, for example, tether has, go ahead, sorry.

No, go ahead.

I was going to say if you look at Tether, for example, Tether's market cap is about 3 times the size of USDC, so USDC has a lot of catching up to do.

I think a lot of people would consider USDC circle the more kind of regulatory friendly version of the stablecoin, and therefore I do expect a lot of growth in it.

So if it catches up, it has 3 times more growth just to get the tether's market cap, but I think both of them will see continued a lot of growth over the next several years.

Yeah, and Kyle, you mentioned regulation and there are a lot of expectations heading into tomorrow, but break down what the SEC is striving for when it comes to defy regulation.

Well, we saw, we saw the other day Paul Atkins come up and say that's, you know, they're going to actually respect D5 regulation and currently we've had this tied gray zone.

In fact, stablecoins have been in the gray zone as well.

We just haven't known and that's the thing like for me personally as a builder who's been building in the crypto industry since 2013, you know, I actually went overseas and I brought my companies overseas and my fund overseas and everything we've been doing has been operating from overseas.

So what They're trying to do in the back of the Trump administration that's promised to make America the crypto capital of the world is create clarity, you know, and that's actually one of, one of the other acts in Congress right now alongside the Genius Act is the Clarity Act, and the Clarity Act aims to give us clarity on what we're allowed to do in this industry from DFI, from other blockchain applications and things like that.

So we can actually finally You know, come to the United States like I've moved back recently to the United States so I can operate, and these bills in Congress right now are really important for the future of growth and so there's a lot riding on it.

Luckily we do see bipartisan support.

It looks like both of them are likely to pass.

Certainly the stablecoin bill will likely pass, but DI is very important, you know, it's, it's upgrading the entire traditional financial system.

No longer does it take days to settle transactions from point A to point B, but we can do it now in seconds.

And I do want to get your take on Bitcoin before I let you go, Kyle.

So I understand that you're quite an early adopter of Bitcoin, and this month, the month of June, we still have yet to see an all-time high for Bitcoin.

So any price targets in mind?

And just out of curiosity, how much was Bitcoin when you first got it?

Yeah, so I first gotten Bitcoin in 2012, and at that time it was more just, uh, it was more just acknowledging the fact that it exists.

By 2013 is when I went really down the rabbit hole and I started accumulating.

I sold the business at the time that I had to buy Bitcoin and, you know, my average entry price was around, around $80 to $100.

Uh, now, when we look at You know, moving forward, I've always been a big optimist because how can you not watching everything that I've seen since that time, but I've always kind of been a little bit ahead of the ball when it comes down to My expectations for adoption.

So if you ask me my price target, it's going to be an optimistic one, you know, I think that's and it's because of everything on the horizon.

When we look at global adoption, governments, I do think that the US will pretty soon start to accumulate Bitcoin for the Bitcoin Strategic reserve.

One from the executive order that was made from Trump earlier, 2, from the Bitcoin Strategic Reserve bill that Senator Cynthia Lammas and others have proposed.

And so I do think that within the next 6 months or so we will start to see some accumulation, and when that happens, I think that'll start a chain reaction amongst other governments that are buying as well.

We've also seen over 60 publicly traded companies now adopt Bitcoin Treasury strategies just like former former micro strategy Michael Sayler's company.

And so we're seeing this crazy daily bid, but your question is why is the price not reacting in a way where we see Bitcoin now at $120,000 plus.

And I think it's just because mostly the global uncertainty and we're seeing a steady control.

Bid before we've always seen this very parabolic run up and so I'm sorry to interrupt you, but we will have to end this interview there, but I look forward to speaking with you again soon.

OK, thank you.