NEW YORK / LONDON (IT BOLTWISE) – Clear Street, a leading New York brokerage firm, is planning an initial public offering with a valuation of up to $12 billion. This comes amid a challenging environment for crypto treasury models, which are under pressure from falling Bitcoin prices.
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Clear Street, a New York-based brokerage firm that has established itself as one of the most active underwriters in the boom in crypto treasury deals, is preparing for an initial public offering. The company is seeking a valuation of $10 billion to $12 billion, with Goldman Sachs expected to lead the offering. The IPO could happen as soon as next month, although some sources indicate that pricing may not take place until January.
Founded in 2018, Clear Street rose to prominence when numerous public companies began adopting the so-called crypto treasury model. This model, popularized by Michael Saylor’s strategy, involves raising capital through stock or bond markets to purchase large amounts of Bitcoin. Clear Street has played a key role in this by acting as underwriter for several significant transactions.
Clear Street’s plans to go public come at a time when the crypto treasury model that fueled its rise is showing signs of strain. The price of Bitcoin has fallen about 30% since the beginning of October, and many smaller crypto treasury companies are now trading at discounts to the value of the tokens they hold. This has limited their ability to issue new shares to buy more Bitcoin, which was an essential mechanism during the bull market.
A recent report from Galaxy Research notes that Bitcoin treasury companies are entering a “Darwinian phase” as the core mechanics of their once booming business model collapse. For companies whose stocks served as leveraged crypto trades, the shift has been intense, as the same financial engineering that fueled the upswing now amplifies the downswing.
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