Investment Company Arca Dumps Circle Shares After Scathing IPO Critique

Digital investment firm Arca has sold its entire stake in Circle, following its public criticism of the stablecoin issuer’s initial public offering (IPO) process.

Arca Chief Investment Officer Jeff Dorman disclosed the move after publishing a sharply worded open letter on June 5, accusing Circle of sidelining the firm during the stock allocation.

Circle, which operates the world’s second-largest stablecoin USDC, debuted on the New York Stock Exchange the same day under the ticker CRCL.

Arca’s $10M Circle Bid Yields Just $135K in Shares, Says Dorman

Dorman claimed Arca had placed a $10 million order for Circle shares in April but was allocated only $135,000 worth of stock.

In the now-deleted post, Dorman wrote: “We pinged you separately two months ago indicating our order, and you thanked us for the support. If you were going to f*** us at the end, the least you could have done was tell us two months ago.”

Following the IPO snub, Dorman said Arca will cut all business ties with Circle, including ending the use of USDC in its operations.

“We will tell every single dealer we work with that we will no longer accept USDC,” he wrote.

UPDATE. They did not.

In the spirit of transparency, Arca has sold its $CRCL shares. https://t.co/F37kxw77Ny

— Jeff Dorman (@jdorman81) June 6, 2025

Circle’s listing marks a major milestone in crypto’s push into traditional finance.

The company raised $1.05 billion in its IPO, with shares jumping 167% on the first day of trading, closing at $82. The rally continued on June 6, with shares changing hands near $115.

USDC currently holds a market capitalization of over $61 billion, cementing its role as a key liquidity instrument in crypto markets.

While Circle’s Wall Street debut drew attention, Dorman’s high-profile criticism has added a layer of controversy to what was otherwise a landmark moment for the stablecoin sector.

Circle’s Public Debut Shows Push Toward Regulated Digital Finance

USDC, the stablecoin issued by Circle in partnership with Coinbase, remains one of the most trusted in the market, backed by regular attestations and adherence to regulatory standards.

Circle CEO Jeremy Allaire called the company’s public listing “a significant and powerful milestone,” adding that “the world is ready to start upgrading and moving to the internet financial system.”

“All along, we’ve aimed to be trusted, transparent, compliant, ethical, and well-governed,” Allaire said. “Meeting NYSE and SEC standards only reinforces that commitment.”

Industry observers expect the capital raised through the IPO will support Circle’s efforts to expand its infrastructure, strengthen global partnerships, and navigate the increasingly complex regulatory landscape.

Circle’s debut comes amid renewed investor interest in crypto-related stocks. The company reported $1.68 billion in revenue and reserve income last year.

Net income declined to $156 million from $268 million in the previous year, but the company remains on solid footing, driven by continued growth in USDC adoption across digital payments and crypto markets.