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Arca, a digital asset management firm, has divested all its shares in Circle, the issuer of the USDC stablecoin, following a public outcry from Arca's CIO, Jeff Dorman. Dorman's frustration stemmed from what he described as a "throwaway" allocation in Circle's recent initial public offering (IPO), despite Arca's long-standing support and early bid.
Key Takeaways
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Arca, a digital investment firm, sold all its Circle shares due to dissatisfaction with its IPO allocation.
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Arca's CIO, Jeff Dorman, publicly criticized Circle for a "throwaway" allocation despite a $10 million order.
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Arca plans to close all accounts with Circle and cease accepting USDC.
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Circle's IPO on the NYSE raised $1.05 billion, with its stock price surging significantly on its debut.
Arca's Disappointment with Circle's IPO Allocation
Arca's Chief Investment Officer, Jeff Dorman, publicly expressed his dismay over the minimal share allocation his firm received in Circle's IPO. Arca had placed a substantial order of $10 million for Circle shares in April 2025 but was only granted a $135,000 allocation. This meager offering, according to Dorman, was a significant letdown given Arca's history as an early supporter and bidder for Circle.
In a now-deleted open letter, Dorman criticized Circle's handling of the allocation, stating:
"We pinged you separately two months ago indicating our order, and you thanked us for the support. If you were going to f*** us at the end, the least you could have done was tell us two months ago so we didn't waste our analysts' and ops teams' time on a deal that you had no intention of allocating shares to us."
The now-deleted letter penned by Dorman
Arca's Response and Future Plans
Following the disappointing allocation, Arca has taken decisive action. Dorman announced that Arca would:
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Close all accounts with Circle.
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Inform all dealers they work with that they will no longer accept USDC.
This move underscores Arca's strong disapproval of Circle's IPO allocation process and its commitment to ceasing business relations with the stablecoin issuer.
Circle's NYSE Debut and Market Performance
Circle commenced trading on the New York Stock Exchange (NYSE) on June 5 under the ticker CRCL. The IPO successfully raised $1.05 billion, marking a significant milestone for the company and the broader crypto industry. Circle is the issuer of USDC, the world's second-largest stablecoin, boasting a market capitalization exceeding $61 billion.
Upon its debut, Circle's stock price experienced a substantial surge:
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On June 5, shares surged by 167%, closing the trading day at $82.
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The rally continued on June 6, with shares trading around $115 during intraday hours.
Sources
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Arca Dumps Circle Shares After Disappointing IPO Allocation, Cointelegraph.
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Arca unloads Circle shares after scathing IPO letter — TradingView News, TradingView.
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