Clear Street, a New York brokerage that has become one of the most active underwriters in the crypto-treasury boom, is preparing to go public with an expected valuation of $10 billion to $12 billion.
The IPO could come as early as next month, with Goldman Sachs lined up to lead the offering, the Financial Times reported, citing people familiar with the matter. One source reportedly told the FT that the deal is unlikely to price before January.
Founded in 2018, Clear Street rose to prominence as dozens of public companies began adopting the “crypto treasury” playbook, raising capital through equity or debt markets and using the proceeds to buy large quantities of Bitcoin (BTC). The strategy was popularized by Michael Saylor’s Strategy, which has accumulated 650,000 BTC through multiple stock and convertible offerings underwritten in part by Clear Street.
The firm also served as an underwriter for Trump Media and Technology Group, which has signaled plans to raise billions to establish a Bitcoin treasury operation of its own.
According to its website, Clear Street has underwritten about $91 billion in combined equity, debt and mergers and acquisitions (M&A) transactions so far this year, including deals for well-known crypto advocates Anthony Pompliano and former US presidential candidate Vivek Ramaswamy.
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Crypto treasury model shows strain
However, Clear Street’s IPO ambitions come at a moment when the crypto-treasury model that fueled its ascent is showing signs of strain. Bitcoin has fallen roughly 30% since early October, while Strategy’s share price has dropped 60% over the past six months.
Many smaller crypto treasury firms now trade at discounts to the value of the tokens they hold, cutting off their ability to issue new stock to buy more BTC, the same mechanism that powered the model during the bull run.
In a recent report, Galaxy Research said that Bitcoin treasury companies are entering a “Darwinian phase” as the core mechanics of their once-booming business model break down.
“For treasury companies whose equities had been serving as leveraged crypto trades, the shift has been intense,” Galaxy said, adding that the “same financial engineering that amplified upside has magnified downside.”
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Crypto companies rush to go public
According to the FT, roughly 316 companies have been listed in the US this year, raising around $63 billion, the highest total since 2021.
Last month, crypto asset manager Grayscale Investments filed an S-1 with the US Securities and Exchange Commission (SEC) to list its shares on the New York Stock Exchange, joining a growing wave of crypto companies going public this year.
In September, crypto custody firm BitGo also filed for a US listing. During the same month, Gemini, run by the Winklevoss twins, made its Nasdaq debut, about three weeks after submitting its Form S-1 to the SEC.
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