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Circle executives urgently sell stocks, cashing out 1.4 billion dollars within two months of going public.
[Coin World] According to reports, while investors are scrambling to snap up the hot crypto asset company IPO this week, executives at stablecoin issuer Circle (CRCL.N) have begun to urgently cash in on the incredible rise since the company's listing. Circle announced on Tuesday that it would sell 10 million shares at the current market price (of which 2 million shares are from the company and the rest from shareholders including CEO Jeremy Allaire), cashing out approximately $1.4 billion. According to insiders, the two-day placement has been oversubscribed, and pricing is expected to be completed by Thursday local time. The company's stock price, which went public in early June, has soared 349% so far, and it delivered impressive quarterly results earlier this week. This stock sale comes much earlier than expected—just two months after Circle's IPO and well before the end of the year lock-up period. However, JPMorgan, as the lead underwriter for the IPO and the decision-maker for lock-up waivers, did not block this sale. Joseph Schuster, founder of the Chicago IPO research firm IPOX, stated: "This is a reasonable arbitrage action, and the risk is thus transferred to the public market."