Circle is being criticised by Jeff Dorman, Chief Investment Officer of digital asset investment firm Arca, for the allocation of only $135,000 received during the stablecoin issuer's recent initial public offering (IPO).
In an open letter posted on social media, Dorman accused Circle and its management of shortsightedness, calling the allocation 'improper' and announcing the closure of all Arca accounts at Circle.
According to Dorman's tweet, against a $10 million purchase order, Arca received only $135,000 in participation. Also according to Dorman, Arca was one of the first organisations to submit a bid. Despite speculation that Circle is postponing the IPO due to the tariff-related macroeconomic shock, the company has supported Circle from the beginning and remained confident. The letter states:
"Like many other companies in the crypto sector, Arca has gone through ups and downs over the past eight years. Most of us have remained united and supportive. To receive a ridiculous one-off distribution from you, after years of helping you grow, is incredible. You are the first crypto company to have treated Arca this way."
"Eight years ago, most of the Arca team left Wall Street to start a crypto company and escape from traditional finance idiots like you. Ironically, you are back to square one," the letter reads.
Dorman added that Arca will discourage other companies from partnering with the stablecoin giant by closing all accounts at Circle.
Circle debuts on the stock exchange: a turnaround for crypto
Being the issuer of the world's second-largest stablecoin by market capitalisation, Circle draws liquidity from traditional finance. According to experts, the 5 June IPO on the New York Stock Exchange (NYSE) represents a turning point for the entire crypto sector.
Circle raises its IPO target twice during the sale
With an initial target of 24 million shares, Circle launched its IPO on 27 May. The company offered 9.6 million shares of Class A common stock, with the remaining 14.4 million coming from early investors.
On 2 June, Circle increased the target to 32 million shares to raise $892 million. On 4 June, it again increased the offering to 34 million shares, for a total of $1.05 billion. In the first hours of trading on the NYSE, the company's shares rose more than 200%.
This aggressive upward revision reflects strong investor demand and growing confidence in the company's future. As an issuer of the stablecoin USDC, Circle has positioned itself at the centre of the digital finance revolution, attracting great interest from institutional and retail investors.
According to analysts, the soaring share price signals optimism for the future of regulated digital currencies and blockchain-based financial infrastructure. In addition to strengthening Circle's financial base, the success of the public listing shows that the market is increasingly looking to crypto-aligned companies with transparent operations and a focus on compliance. Future crypto IPOs could follow the example set by Circle.
