Circle has fired 6% of its employees and is now focused on geographical growth and efficiency, confirmed Bloomberg in a report.
Prominent digital asset payments firm Circle Internet Financial, which is also the issuer of the second-largest stablecoin by market capitalization USDC has laid off employees. The revelation comes amid a surge in the price of Bitcoin BTC $76 425 24h volatility: 7.9% Market cap: $1.52 T Vol. 24h: $62.99 B , claiming a historical price of $100,000, and the broader crypto market hitting a market cap of $3.69 trillion.
According to a report from Bloomberg on Thursday, December 5, citing a statement from a Circle spokesperson, the blockchain firm licensed as a Money Transmitter by the New York State Department of Financial Institutions has laid off a significant 6% of its workforce. Notably, the firm had a substantial 882 employees in June.
The spokesperson added that Circle actively reviews its investments and expenses, and the job cuts are a part of the firm cutting expenses and investing more money in the stablecoin issuer’s “geographical growth, efficiency, and productivity powered by artificial intelligence,” Bloomberg said. While talking about Circle’s growth strategy, the spokesperson noted:
“This includes investing in teams and operational infrastructure that need to grow, while marginally reducing spend and some roles in other areas of the business.”
It is important to note that Circle is eyeing an initial public offering in the United States and even submitted a draft registration with the Securities and Exchange Commission (SEC) at the beginning of the year. Earlier this year, the chief executive of the stablecoin issuer Jeremy Allaire unveiled that the plans of the IPO are very much alive, adding that Circle will not be looking towards private markets to raise funds.
With Donald Trump securing a victory in the 2024 presidential elections and nominating former SEC Commissioner Paul Atkins as the new SEC Chair, replacing anti-crypto Gary Gensler, the possibility of Circle scoring an IPO in the US is high. Along with an IPO in the US, the stablecoin issuer also eyes expansion in Hong Kong due to its crypto-friendly policies and regulatory framework.
Last year, in July 2023, Circle revealed that it had to cut down its workforce slightly due to the adverse effects of the crypto winter that lasted from 2022 to 2023.
Crypto Market Surge
Bitcoin broke above the significant psychological resistance of $100,000 and made a new all-time high of $103,900.47 on Thursday while claiming a market cap of $2 trillion. At the time of writing, the digital asset is trading at $102,469.65, up by more than 6% in the past 24 hours.
Meanwhile, stablecoin exchange flows, including USDT by Tether and USDC by Circle, have skyrocketed, suggesting that investors are exchanging their fiat for fiat-pegged cryptocurrencies, pouring more money into the crypto market. As a result, the continuation of the uptrend is very much possible.
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