Circle Employees Missed Out on $3B as IPO Route Favored Outsiders, Says Palihapitiya

In Brief:

Circle insiders sold shares at $31 IPO price; those shares are now worth $240+, creating a $3B value gap.

Critics say a SPAC or direct listing could’ve preserved more upside for early employees.

Circle’s IPO has sparked backlash after early employees reportedly missed out on nearly $3 billion in unrealized gains. Venture capitalist Chamath Palihapitiya pointed out that insiders sold 14.4 million shares at $31 each during the IPO, pocketing $446 million. However, with the stock now trading over $240, those shares would be worth roughly $3.45 billion. Palihapitiya called it a “$3 billion gift” to outside investors who had no role in Circle’s growth, blaming the traditional IPO model. He argued that a SPAC or direct listing would have allowed insiders to retain more control and value. Despite the controversy, Circle’s stock (CRCL) has soared over 675%, with strong market optimism fueled by the GENIUS Act’s potential to cement stablecoin regulation in the U.S.

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