Key Points
Circle (NYSE: CRCL) and CoreWeave (NASDAQ: CRWV) are notable tech IPOs that have performed well despite a challenging market. Circle, which went public in June 2022, has seen its stock rise over 300% from its IPO price of $31. CoreWeave, which debuted in March 2023, has nearly tripled from its IPO price of $40.
Circle issues USD Coin (USDC), a stablecoin backed by cash and U.S. Treasuries, benefiting from the demand for cross-border transactions and savings alternatives. Analysts anticipate Circle’s revenue and adjusted EBITDA will grow at CAGRs of 26% and 32%, respectively, from 2025 to 2028, maintaining an enterprise value of $25 billion at 27 times this year’s adjusted EBITDA.
CoreWeave, originally an Ethereum mining company, repurposed its infrastructure for AI tasks, expanding its data centers from three at the end of 2022 to 43 by the end of 2025, utilizing over 250,000 GPUs. With a backlog of $99.4 billion and projected revenue and adjusted EBITDA growth rates of 97% and 101%, respectively, its enterprise value stands at $104 billion, valued at 14 times this year’s adjusted EBITDA.
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