Circle in the Hot Seat: Coinbase and Ripple Eye Acquisition Amidst IPO Buzz

Holy smokes, Circle is playing the field, and it looks like Coinbase might just be the lucky one to take them home! Word on the street is that Circle, the mastermind behind USDC, is not only gunning for an IPO but also flirting with the idea of being scooped up by none other than Coinbase and Ripple.

These guys are not messing around, aiming for a cool $5 billion valuation, whether they hit the public markets or get snatched up in a blockbuster deal.

Coinbase: The Frontrunner in the Race

“If Coinbase wanted to buy them, Circle would sell in a heartbeat,” spilled one insider. Sure, the IPO plans are still on the table, but no concrete details or flashy roadshows have been rolled out yet.

Why Coinbase? Well, these two have been tight since they co-founded the Centre Consortium back in 2018 to launch USDC. They’re not just partners; they’re practically family, sharing revenue from those sweet reserve interests.

Coinbase isn’t just a casual suitor either. They’ve got the upper hand with a 100% share of the revenue from USDC parked on their platform. Plus, they’ve got a say in Circle’s partnerships and even the juicy IP rights.

But wait, Ripple’s also in the mix, throwing around offers between $4 billion and $5 billion. Circle said “no thanks” to that, though. Could Ripple make a comeback? They’ve got a stash of XRP worth over $100 billion, including those tokens chilling in escrow, ready to fund a mega-deal.

Yet, it’s Coinbase who’s holding the stronger hand with a whopping $8 billion in cash and the power to pull in more dough from the public markets. Brian Armstrong, the big boss at Coinbase, mentioned on May 14 that Circle’s IPO won’t rock their boat, but he’s not closing the door on future shenanigans.

Coinbase has been on a roll with M&A this year, snapping up Deribit and Spindle like it’s nothing. Circle might be dreaming of a killer IPO, especially after eToro’s stellar debut, but a strategic sale? That’s still very much on the table.