2025 Turning Into a Bumper IPO Year for Crypto
After the frosty scepticism surrounding the "crypto winter," the digital assets market isn't just warming up; it's plotting a historic resurgence.
The cryptocurrency market has surprised even the most seasoned financial experts with its extraordinary run-up and tenacity from the beginning of 2024 to the middle of 2025.
The new foundation is stronger.
There are fewer fraudsters plaguing crypto platforms, the technology is more developed, crypto has the support of a US president, and the investors and players are significantly larger this time around.
Naturally, listings and dealmaking in the crypto sector are flourishing amidst the raging adoption of cryptos by traditional wealth custodians and equally enthusiastic regular mom-and-pop investors.
Circle's Euphoric IPO Leads The Way
Circle's blockbuster IPO signals a major crypto public offering wave, in which Wall Street failed to notice the enormous pre-IPO undervaluation.
Now, crypto behemoths and Wall Street biggies are well-positioned to profit from the oncoming wave of initial public offerings (IPOs).
The market's thirst for crypto equities was on full display in the first week of trading for Circle, the issuer of the USDC stablecoin. Its shares soared from an IPO price of $31 to finish at $107.
On the first day of trade, Circle's shares soared by more than 168%, well above market forecasts.
Circle's phenomenally successful offering will likely prompt many more cryptocurrency companies to follow suit or accelerate their plans to go public.
That bumper IPO emphasizes the wider influence on the cryptocurrency market, as Circle achieved a first in the present crypto-positive atmosphere in the US by developing captivating stories.
The Circle IPO has set a new standard for the sector, and the general public is starting to accept digital assets more and more.
IPOs in the Pipeline
In recent weeks, several prominent firms, particularly in high-risk industries like cryptocurrency and financial technology, have achieved successful listings, showcasing a resurgence in capital market activity and significant demand.
The recent increase in cryptocurrency IPOs marks a pivotal moment for the sector, showcasing heightened confidence among digital asset companies in their ability to engage mainstream investors.
This trend also introduces greater transparency, regulatory oversight, and capital influx, which could strengthen cryptos' position within conventional financial markets.
In the latest news, a crypto exchange supported by Peter Thiel, Bullish, has submitted a confidential filing for an IPO with the US Securities and Exchange Commission, according to a report by the Financial Times on Tuesday.
A division of the blockchain software firm Block.one, Bullish sought to enter the public market in 2021 through a special purpose acquisition company arrangement.
However, this initiative collapsed in 2022 due to a regulatory crackdown and a sharp increase in interest rates that unsettled the equities market.
The Trump administration's approach differs significantly from that of Joe Biden. It has adopted a more lenient position on cryptocurrency regulation and has supported the industry's policy goals, evidenced by the SEC halting multiple investigations.
According to the FT, Bullish aims to leverage the resurgence of investor enthusiasm for digital assets in light of the current administration.
Bullish's filing follows Gemini's announcement. Gemini is a cryptocurrency exchange operated by billionaire twins Tyler and Cameron Winklevoss, which revealed last week that it had confidentially submitted for a US IPO.
Gemini, a cryptocurrency exchange where users can purchase, trade, and store over 70 different tokens, has stated that it has not yet settled on an offering size or pricing range.
The Winklevoss twins rose to fame after suing Facebook and its CEO, Mark Zuckerberg. They claimed that Zuckerberg had stolen their idea for the social media site.
According to the twins, they reached a settlement in 2008 and were compensated with Facebook shares and cash.
With Bitcoin trading strongly over the crucial $100,000 per unit milestone, the current valuation of the global cryptocurrency industry is around $3.3 trillion.
Institutional investors seeking exposure to the asset class have poured billions of dollars into the market, especially since the US approved spot bitcoin ETFs.
When Coinbase joined the S&P 500 in May, it was a landmark event for the cryptocurrency business in the United States.
Businesses in the crypto industry are increasingly integrating into more conventional marketplaces as the industry develops financially and secures a legislative footing.
While no official paperwork has been submitted, rumours have circulated that Kraken, a San Francisco-based exchange, is preparing for an IPO in early 2026. The most recent pricing round that the company completed was in 2019 when it garnered $13.5 million at a valuation of $4 billion. Reports indicate that the firm has been in talks with financial institutions to finalize a debt offering to accelerate growth before the listing.
Reports surfaced in February that the US-based custodian Bitgo was considering an IPO "as early as this year," although no official paperwork has been submitted yet. In August 2023, Bitgo completed its most recent pricing round, valued at $1.75 billion.
You can bet that more will announce plans to list soon after Circle's enthusiastic welcome since these are just a few of the companies among many.
Given the impressive performance of Bitcoin Treasury business stocks and ETFs, investing in shares from companies that support the industry's infrastructure appears reasonable.
Crypto Dealmaking Surges
Dealmaking in the digital currency area is booming due to robust business growth, political support, and regulatory support.
After a time of stringent regulatory restrictions, the cryptocurrency industry in the United States is entering a golden age.
Many in the industry hope that President Trump's second term will finally end the governmental crackdown on cryptocurrency that has been ongoing for the past few years.
For example, after Trump's election, the price of Bitcoin surged by almost 50%, reaching a record high of over $111,000 last month.
Rising institutional adoption, public interest, and technological advancement are the three main factors predicted to propel the US crypto dealmaking market from $9.8 billion in 2024 to $29.8 billion in 2033.
Europe is following the same path as the US.
Supportive legal frameworks are anticipated to play a significant role in the anticipated growth of the European cryptocurrency market, which is projected to increase from $6.9 billion in 2024 to $27.6 billion by 2033. For
For instance, at the tail end of 2024, the European Union enacted the "Markets in Crypto-Assets" law in an effort to "put order in the Wild West of crypto-assets. "
Amidst the continuous push for digital transformation and the intensifying competition to provide innovative services to clients, the volume of transactions in the technology and financial services sectors saw significant expansion in 2024 and the initial quarter of this year across both the US and Europe.
Companies within the financial industry experienced significant growth in overall deal value compared to the previous year as they pursued advanced digital technologies.
In 2024, there was a notable increase in crypto transactions in the US and Europe, propelled by favorable market conditions.
93 agreements were announced in the previous year, amounting to a total value of $4.1 billion. According to Mergermarket data, this reflects a 2.5-fold increase in value and a 19% rise in volume compared to the year before.
Upon closer examination, it became evident that the United States played a pivotal role in the substantial rise in overall value in 2024.
The 45 announced crypto deals were valued at just over $3.2 billion, nearly five times the amount in 2023. During this period, 48 transactions were noted in the EMEA region, an uptick of 8 transactions compared to the prior year. Nonetheless, the total value experienced a minor decline, decreasing by 5% compared to the previous year, reaching $918 million.
In light of the challenges faced in the wider M&A landscape, the initial quarter of 2025 has demonstrated robust performance. Twenty-three transactions valued at $655 million were completed across the United States and Europe.
In the March quarter this year, Europe took the lead with 12 transactions amounting to $348 million, reflecting year-on-year growth of 9 percent and 21 percent, respectively.
US dealmaking experienced a slowdown, with 11 transactions amounting to $307 million, reflecting year-on-year declines of 26 percent and 66 percent, respectively.
The decline in US value can be attributed to several significant transactions in 2024, the most notable of which was the acquisition of a stablecoin infrastructure provider.
Bridge Ventures by the US-Irish fintech powerhouse Stripe. The deal, valued at $1 billion, marks the largest acquisition in the crypto sector to date.
Stripe aims to improve its stablecoin services, which have proven to be a viable method for conducting international transactions via blockchain. Thanks to their lower fees and immediate settlement capabilities, stablecoins provide a secure and reliable alternative to traditional payment methods.
Outlook for Crypto Deals
Driven by favorable government initiatives across the Atlantic, the merging of fintech and cryptocurrency is poised to be a significant trend to monitor as we progress into 2025.
Financial institutions and payment companies are striving to enhance efficiencies in their digital offerings, while emerging crypto firms will leverage mergers and acquisitions to gain scale in a more competitive market.
The dynamics at play are poised to reshape the market rapidly, and mergers and acquisitions will play a pivotal role in realizing this objective.
Elsewhere
Blockcast
Fideum's Anastasija Plotnikova on Building Regulated Crypto Infrastructure
In this episode, your host Takatoshi Shibayama sits down with Anastasia Plotnikova , CEO of Fideum , a regulated digital asset infrastructure company operating across Lithuania and Canada. They dive into what it's like to build in Europe under the new MiCA regulation, the practical challenges of regulation, and the global dichotomy between CeFi and DeFi. Anastasia shares her journey from law enforcement to crypto, and how growing up in the post-Soviet era shaped her deep appreciation for decentralized finance.
Blockcast is hosted by Head of APAC at Ledger, Takatoshi Shibayama . Previous episodes of Blockcast can be found here , with guests like Davide Menegaldo (Neon EVM), Jeremy Tan (Singapore parliament candidate), Alex Ryvkin (Rho), Hassan Ahmed (Coinbase), Sota Watanabe (Startale), Nic Young (Oh), Jacob Phillips (Lombard), Chris Yu (SignalPlus), Kathy Zhu (Mezo), Jess Zeng (Mantle), Samar Sen (Talos), Jason Choi (Tangent), Lasanka Perera (Independent Reserve), Mark Rydon (Aethir), Luca Prosperi (M^0), Charles Hoskinson (Cardano), and Yat Siu (Animoca Brands) on our recent shows.
Blockhead is a media partner of Coinfest Asia 2025. Get 20% off tickets using the code M20BLOCKHEAD at https://coinfest.asia/tickets .
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