Crypto and AI-based initial public offerings last year reportedly dragged down the performance of all US public debuts to fall behind the tech-heavy index S&P 500.
Shares of all companies that went public last year, not including closed-end funds and blank-check companies, gained 13.9% on a weighted average basis, underperforming the S&P 500’s comparative 16% gain, Bloomberg reported on Monday.
Last year saw some of the crypto industry’s biggest players go public as the Trump administration gave Wall Street the confidence to back crypto companies with billions of dollars. However, not every company performed.
Bets on artificial intelligence companies were also a gamble, with the likes of data center developer Fermi and the AI-backed expense platform Navan having underperformed from their IPOs.
One of the biggest and best-performing crypto debuts was stablecoin issuer Circle Internet Group’s (CRCL) $1.05 billion debut in June, which priced its IPO at $31 and saw its shares jump by 170% on its first day.
Circle’s stock has since faltered as Bitcoin (BTC) fell from its peak in October, with the company’s shares closing at $79.30 on Dec. 31, below its debut day closing price. Circle is currently down nearly 70% from its peak of over $263, having closed at $84.80 on Monday.
The Winklevoss twins’ crypto exchange, Gemini (GEMI), debuted in September and was among the worst-performing crypto IPOs of 2025.
Gemini priced its IPO at $28, and while it initially rose to a peak of over $32.50, it had dropped by 64.5% by Dec. 31 to $9.92. It had slightly recovered to $11.12 on Monday.
Shares in the crypto exchange Bullish (BLSH), which went public in August, fared only a little better. It opened at $37 and rose to end its debut trading day at $68, but it had dropped to $37.87 on Dec. 31, nearing its IPO price.
2025 was a mixed year for public debuts
Mike Bellin, the US IPO leader at consultancy PwC, told Bloomberg that last year “was a distinctly mixed year for IPOs” as the market reopened selectively, with the bar for early-stage tech companies rising significantly.
Related: Kraken IPO, M&A deals to reignite crypto’s ‘mid-stage’ cycle: fund manager
Medium-sized IPOs reportedly saw weaker performance compared to larger ones, with the shares of deals priced between $500 million and $1 billion increasing a weighted average of 5.6%, compared to an average of 20% for those valued at $1 billion or more.
Last year’s largest IPO was medical equipment provider Medline’s $7.2 billion offering, with its stock climbing 40% since its debut in mid-December. The second-largest offering was gas exporter Venture Global’s $1.75 billion offering, which it cut by 40% before it debuted, and its shares have plummeted 72%, making it one of the worst-performing debuts.
“The biggest takeaway is that we’re firmly back in a fundamentals-driven market,” said Bellin. “Investors have become far more selective, and companies must enter the market with a sharper story and stronger operational direction.”
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