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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. <\/p>\n
The IPO could come as early as next month, with Goldman Sachs lined up to lead the offering, the Financial Times reported<\/a>, citing people familiar with the matter. One source reportedly told the FT that the deal is unlikely to price before January. <\/p>\n Founded in 2018, Clear Street rose to prominence as dozens of public companies began adopting the \u201ccrypto treasury\u201d playbook, raising capital through equity or debt markets and using the proceeds to buy large quantities of Bitcoin (BTC<\/a>). The strategy was popularized by Michael Saylor\u2019s Strategy, which has accumulated 650,000 BTC through multiple stock and convertible offerings underwritten in part by Clear Street.<\/p>\n 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<\/a> of its own. <\/p>\n According to its website, Clear Street has underwritten about $91 billion in combined equity, debt and mergers and acquisitions (M&A)<\/a> transactions so far this year, including deals for well-known crypto advocates Anthony Pompliano and former US presidential candidate Vivek Ramaswamy.<\/p>\n Related: <\/strong><\/em>HashKey edges toward Hong Kong listing while China chills stablecoin plans<\/strong><\/em><\/a><\/p>\n However, Clear Street\u2019s 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\u2019s share price has dropped 60% over the past six months. <\/p>\n 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.<\/p>\n In a recent report, Galaxy Research said that Bitcoin treasury companies are entering a \u201cDarwinian phase\u201d<\/a> as the core mechanics of their once-booming business model break down.<\/p>\n \u201cFor treasury companies whose equities had been serving as leveraged crypto trades, the shift has been intense,\u201d Galaxy said, adding that the \u201csame financial engineering that amplified upside has magnified downside.\u201d<\/p>\n Related: <\/strong><\/em>Revolut hits $75B valuation following share sale, global push<\/strong><\/em><\/a><\/p>\n According to the FT, roughly 316 companies have been listed in the US this year, raising around $63 billion, the highest total since 2021. <\/p>\n Last month, crypto asset manager Grayscale Investments filed an S-1 with<\/a> 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.<\/p>\n <\/p>\n In September, crypto custody firm BitGo also filed for a US listing<\/a>. During the same month, Gemini, run by the Winklevoss twins, made its Nasdaq debut, about three weeks after submitting its Form S-1<\/a> to the SEC.<\/p>\nCrypto treasury model shows strain<\/h2>\n
Crypto companies rush to go public<\/h2>\n