The Chief Investment Officer of digital asset investment firm Arca, Jeff Dorman, is criticizing Circle for receiving only $135,000 in allocation during the stablecoin issuer's recent initial public offering (IPO).
In an open letter posted on social media, Dorman accused Circle and its leadership of poor decision-making, calling the allocation "inappropriate," and announced the closure of all Arca accounts with Circle.
According to Dorman's post, Arca received only $135,000 of its $10 million subscription order. Dorman stated that Arca was one of the first institutions to propose a subscription offer. The executive claimed that the company was one of Circle's earliest supporters, remaining steadfast even amid rumors that macroeconomic shocks from tariffs could delay Circle's IPO plans.
The open letter stated, "Like all other crypto-native companies, Arca has gone through tough times over the past eight years. Most of us have united and helped each other. I cannot believe that our efforts to help you grow over the years have ultimately resulted in a ridiculous allocation that is done half-heartedly. You are the first and only cryptocurrency company to treat Arca this way."
The open letter continued, "Most of Arca's management team left Wall Street eight years ago to specifically create a crypto-native company to distance ourselves from traditional financial clowns like you. Ironically, you have 'fully circled' us (a pun)."
Dorman also stated that Arca is closing all accounts with Circle and will discourage other companies from collaborating with the stablecoin giant.
Circle went public on June 5 on the New York Stock Exchange (NYSE), marking a significant milestone for the cryptocurrency industry as the second-largest stablecoin issuer opened liquidity channels to traditional finance.
Circle launched its IPO on May 27, announcing an initial target of 24 million shares, with the company issuing 9.6 million Class A common shares and existing early investors providing the remaining 14.4 million shares.
On June 2, the stablecoin company raised its IPO target to 32 million shares, aiming to raise $892 million. On June 4, Circle again raised its target, increasing the IPO issuance to 34 million shares, valued at $1.05 billion. The company's stock surged over 200% in the first few hours of trading on the NYSE.
Related: Report: Institutional Bitcoin (BTC) ETF Holdings Experience First Quarterly Decline
Original: “Arca Executive Uses Profanity in Open Letter Criticizing Circle IPO”
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