NewsletterCrypto Stocks MSTR, COIN, MARA Crash After Circle (CRCL) Debuts With 168% Gains
Highlights
- The drop in top crypto stocks reflects a liquidity reshuffle as investors rush for Circle's IPO offering.
- On debut, CRCL stock began trading at $31, peaked at $103.75, and closed at $83, with a trading volume far exceeding its freely floating shares.
- Amid the IPO boom, Arthur Hayes draws parallels to 2017 ICO bubble warning about retail FOMO.
Top crypto stocks on Wall Street saw a sharp fall of 4-5% on Thursday, while Circle (NYSE: CRCL) made a stellar debut on the New York Stock Exchange (NYSE) with 168% gains. Coinbase (COIN) stock tanked 4.61%, while shares of Strategy (MSTR) and Marathon Digital (MARA) also tanked with a similar magnitude. This seems a classic capital rotation as Wall Street investors gave a roaring welcome to USDC issuer.
Crypto Stocks MSTR, COIN, MARA Crash
In what seeks to be a classic liquidity reshuffle as USDC stablecoin issuer Circle debuts on Wall Street, top crypto stocks came under selling pressure. Michael Salor’s Strategy (MSTR) was down 2.46%, eroding all of its past week’s gains.
MSTR stock has underperformed other Bitcoin holders like Metaplanet, with negative returns over the past six months. However, this hasn’t deterred Michael Saylor’s resolve to increase the company’s Bitcoin holdings, as the firm added 705 BTC earlier this week.
Similarly, Coinbase stock tanked 4.61% yesterday, ending at $244 levels, after 25% gains over the past month. On the other hand, Bitcoin miner Marathon Digital (MARA) also tanked over 5% yesterday.
Will Circle Stock Rally Sustain?
USDC stablecoin issuer Circle debuted on Wall Street yesterday at $69, at more than 100% gains from its IPO price of $31. At one point, the crypto stock rallied all the way to $103.75, before ending Thursday’s trading session at $83.
By the end of the day, CRCL’s trading volume soared to approximately 46 million, significantly surpassing the number of freely floating shares available for trade. However, market experts warned retail players from FOMOing about CRCL.
Former BitMEX CEO Arthur Hayes has drawn parallels between the 2017 ICO boom and the emerging wave of crypto IPOs in 2025. “This is the start of a mania,” Hayes tweeted. He further noted that this IPO mania would extract significant fiat capital. Hayes warned of potential pitfalls ahead.
Dom, a former Goldman Sachs executive, who worked on pricing tech IPOs cautioned retail participants against jumping into Circle’s stock following its remarkable 168% surge on IPO day. He wrote that bankers often design a “pop” to draw retail attention.
Instead, he recommends waiting 90-180 days after the IPO to invest, as this period allows for better price discovery.
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