By Paul R. La Monica

Circle, the stablecoin company, has nearly quadrupled since it debuted a week ago -- from $31 to about $113.

If you missed that gangbusters initial public offering, don't worry. The crypto world has others in the pipeline -- possibly a lot of others.

Wall Street's appetite for companies that trade or invest in digital assets is hearty -- or at least certainly growing: Circle listed on June 5; crypto brokerage firm eToro on May 14; and Galaxy Digital, the crypto investment firm run by Michael Novogratz, listed on the Nasdaq on May 16. Galaxy also trades the Toronto Stock Exchange.

Next up, right now: Gemini, the crypto exchange run by the Winklevoss twins of Facebook/"The Social Network" movie fame, has filed for a confidential IPO with the Securities and Exchange Commission. The company doesn't have to disclose the offering's details -- number of shares and pricing range as well as the company's revenue and earnings -- until closer to the listing.

And there could be other companies tied to Bitcoin and other cryptos that will follow Gemini. The list of contenders is long: OpenSea, KuCoin, Kraken, Bullish, Consensys, and Ripple.

One crypto expert who is predicting a flurry of crypto IPO filings is David Bailey, founder and CEO of Nakamoto, a company that buys and holds Bitcoin in its corporate treasury much like Michael Saylor's MicroStrategy.

"Congrats to Circle. They unlocked billions of dollars in value for investors," Bailey told Barron's in an interview.

Nakamoto -- the name is a nod to the surname (perhaps a pseudonym) of the developer of Bitcoin -- is merging with publicly traded KindlyMD. Other public companies are also investing in Bitcoin. Three big names are Tesla, Square and CashApp owner Block and retailer GameStop.

Bailey believes the time is ripe for more IPOs because of two simple yet key reasons. First, crypto stocks are killing it on Wall Street. Second, the industry is getting a little love from Washington.

President Donald Trump, for example, has already appointed a crypto "czar," established a strategic Bitcoin reserve, and shortened the enforcement leash of the SEC.

"The Trump administration has sent a strong positive message not just for crypto but for capital markets in general," said Bailey. "Our industry had been so restricted and constrained for so long. Companies are eager to go to market right away."

Three names that pop up are OpenSea, KuCoin, and Blockchain.com. All are so-called unicorns, private companies worth at least $1 billion in their last round of financing.

There's also chatter about IPOs later this year from Kraken and Bullish, both crypto exchanges; blockchain software firm Consensys; and Ripple, the company behind the XRP cryptocurrency, according to global market strategists at J.P. Morgan Securities.

"Crypto IPOs also offer opportunities for crypto investors to diversify their crypto exposure beyond bitcoin," they wrote this week.

Like Bailey, the strategists also pointed out "a clearer and more supportive regulatory environment," a stablecoin bill working its way through the Senate.

"The anticipation of such a US regulatory environment is conducive to crypto corporate activity such as IPOs and VC funding," the strategists noted. "The number of crypto company IPOs YTD tracks the pace seen during the hype of 2021."

Hype is an interesting word choice. And maybe something for would-be investors to consider.

Cryptos, particularly Bitcoin, are volatile -- in part because everyday investors want to ride the momentum. These same investors often flee cryptos when prices start to drop.

For Bailey, that's all part of investing in crypto. Actually, that's all part of investing if you think about it.

"Bitcoin has bull and bear market cycles. That is natural," Bailey told Barron's. "The strongest companies will survive and prosper. But you need a forest fire once in a while to clear out the underbrush so the forest can thrive."

The challenge for investors will be separating the winners from the losers. Crypto stocks are riding a bullish tide right now. But it may not last.

Then again, isn't that simply the case when you put your money in any stock?

Write to Paul R. La Monica at paul.lamonica@barrons.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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June 12, 2025 13:01 ET (17:01 GMT)

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