New York brokerage Clear Street, which provides backing for crypto treasury firms, is anticipating a public listing valued between $10–12 billion. The Initial Public Offering (IPO) is projected to occur by January 2026, with Goldman Sachs identified as the lead underwriter for the offering. Notably, Clear Street's IPO aspirations coincide with a period of price pressure for Bitcoin.
Clear Street's IPO Expected in January
Clear Street is planning for an IPO, aiming for a valuation of between $10 billion and $12 billion. The company is widely recognized as one of the most active underwriters supporting the crypto-treasury sector during its boom.
One source familiar with the matter indicated that the deal is unlikely to be priced before January. However, the IPO itself is expected to happen as early as next month.
Coincidentally, this timing aligns with a period where the crypto-treasury model that fueled Clear Street's growth is showing signs of difficulty. The cryptocurrency market has experienced a roughly 30% decline in Bitcoin's price since early October. Currently, Bitcoin (BTC) is trading at $89,749.14, showing a 0.9% increase over the last 24 hours.
MSTR Price Drops as Bitcoin Dips
While recent data might suggest an upward trend, it is important to note that the flagship cryptocurrency is facing challenges. In less than three months, the asset has fallen from over $126,000 to $81,000 before recovering to its current level.
In addition to the BTC price drop, the share price of MicroStrategy (MSTR), a prominent firm holding significant Bitcoin reserves, has plunged by 60% over the past six months. Several large funds utilize MicroStrategy as a tool to manage their exposure to Bitcoin, employing it as a hedging strategy.
MicroStrategy's Bitcoin Holdings Strategy
Reflecting the market sentiment, there have been discussions about MicroStrategy potentially selling its Bitcoin holdings. However, the company's CEO, Phong Le, has explained that MicroStrategy remains committed to Bitcoin while managing its finances carefully. He did acknowledge, however, that specific conditions exist under which MicroStrategy would consider selling its holdings.
One such condition is if the company's stock price falls below its Net Asset Value (NAV). Another is if new sources of capital become unavailable, which, given the firm's reputation, appears unlikely.