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Circle's (CRCL) stock surged for a third day in a row on Monday following its blockbuster IPO last week.
Shares of the stablecoin issuer jumped as much as 15% before paring gains to close at $115 per share, a premium of 270% above its debut IPO price of $31.
The surge builds on gains from the previous two trading days, including an intraday surge of over 200% last Thursday shortly after the company's highly anticipated market debut.
Circle's IPO success comes amid bullish momentum in the crypto space, including the Trump administration's push for a friendly framework for cryptocurrencies, the president's business involvement in the space, and legislation in Congress that would regulate stablecoins.
"Having a crypto-friendly administration, the legislation ... plus the fact that larger financial institutions are considering launching their own coins, these are all tailwinds and votes of confidence in the stablecoin market," EquityZen head of market insight Brianne Lynch told Yahoo Finance last Thursday.
Circle had previously attempted to go public via a SPAC deal in 2021 but ultimately shelved the plan a year later.
Circle is the issuer of the stablecoin USDC (USDC-USD), which is backed by the dollar. The company had $60 billion worth of the token in circulation at the end of the first quarter. Circle is the second-largest stablecoin issuer on the market, trailing only Tether, which has nearly $150 billion in circulation.
The company generates the bulk of its revenue through "reserve income" — profits earned from the cash reserves backing the USDC stablecoins.
Publicly traded companies have been increasing their exposure to digital assets, with some shifting their strategies to emulate Strategy's (MSTR) bitcoin treasury model.
Bitcoin (BTC-USD) recently surged to all-time highs above $110,000. On Monday, bitcoin traded near $107,000 per token.
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