According to recent information, report By The Information, Cryptocurrency and artificial intelligence are dominating the U.S. initial public offering (IPO) market.
There have been 51 IPOs of US high-tech companies on the market, and a large number of companies have successfully gone public, raising a total of $16.8 billion.
This performance is “well above the average over the past three years” and marks a significant resurgence after a period of relative quiet for the IPO market (especially compared to the boom years of 2020 and 2021).
Venture Global, a major U.S. liquefied natural gas company, sold 70 million shares at $25 each, raising $1.75 billion, making it one of the year’s biggest IPOs.
When it comes to cryptocurrencies, Circle Internet Group, the issuer of the USDC stablecoin, raised approximately $1.05 billion in an IPO of 34 million shares at a price of $31 per share.
Cryptocurrency exchange Bullish, backed by Peter Thiel, also had a major IPO. The company raised $1.1 billion by selling 30 million shares at $37 a share, giving it a company value of about $5.4 billion.
Expect interest rates to fall
Bankers expect the market to expand in 2026 due to lower interest rates.
Higher interest rates make it more expensive for companies to borrow money, reducing the present value of future earnings (this is a common way to value high-growth technology companies). Lower interest rates drive up valuations, making initial public offerings more attractive and profitable for companies and their individual investors.
Generally, lower interest rates mean investors are more willing to take risks. When borrowing is cheap, it is easier for capital to flow into growth-oriented investments, such as new IPOs, especially in high-tech sectors.
Lower interest rates are expected to allow more companies to successfully go public, expanding the market.
