Circle Internet stock shares slide after stock offering launched

[Cryptocurrency Crypto Apps - Binance, Circle, Coinbase]

Circle Internet Group (NYSE:CRCL [https://seekingalpha.com/symbol/CRCL]) shares dropped 3.9% in Wednesday morning trading after the stablecoin-focused company launched a stock offering just two months after its initial public offering. [https://seekingalpha.com/news/4455675-circle-raises-11b-in-upsized-ipo-prices-shares-above-marketed-range---report]

The company is offering 2M shares of class A common stock [https://seekingalpha.com/news/4484218-circle-launches-public-offering], and selling stockholders are offering 8M shares, the company announced on Tuesday. Stocks generally fall when new shares are added into public markets, reducing the percentage stakes of existing stockholders.

Circle (NYSE:CRCL [https://seekingalpha.com/symbol/CRCL]) estimates net proceeds to the company [https://seekingalpha.com/filing/10295048#D839239DS1_HTM_rom839239_13]will be ~$309.4M, or ~$542.6M if the underwriters exercise their option for addition shares in full. The proceeds are expected to be used for working capital and other general corporate purposes, which may include: potential acquisitions of new products and technologies; marketing investments; investments in new products and capabilities; and payment of tax withholding and remittance obligations related to periodic vesting and net settlement of outstanding restricted stock units granted to employees.

Of course, the company does not receive proceeds from the shares offered by selling stockholders.

In the offering, Circle (NYSE:CRCL [https://seekingalpha.com/symbol/CRCL]) directors and executive officers are selling a total of 764K shares, including Chairman and CEO Jeremy Allaire offering almost 358K shares.

Of non-corporate holders, IDG Capital is offering 1.17M shares (potentially reducing its stake to 9.0% from 9.6%) and General Catalyst Group IV LP is offering 1.12M shares (potentially reducing its stake to 6.1% from 6.6%).

MORE ON CIRCLE INTERNET GROUP

* Circle: My Bull Case Is Now Broken (Q2 Earnings Review) [https://seekingalpha.com/article/4812990-circle-my-bull-case-is-now-broken-q2-earnings-review]
* Circle: Q2 Earnings Not Good Enough [https://seekingalpha.com/article/4813005-circle-q2-earnings-not-good-enough]
* Circle: Golden Buying Opportunity Before Earnings [https://seekingalpha.com/article/4811746-circle-golden-buying-opportunity-before-earnings]
* Circle Internet stock jumps after Q2 revenue beats, as stablecoin demand builds [https://seekingalpha.com/news/4483768-circle-internet-stock-jumps-after-q2-revenue-beats-as-stablecoin-demand-builds]
* FIS partners with Circle on stablecoin use for financial institutions [https://seekingalpha.com/news/4472981-fis-partners-with-circle-on-stablecoin-use-for-financial-institutions]