Public Keys: Circle IP-No, Strategy Nears 3% of Bitcoin Supply, and a Bakkt Investor Gets Rekt

Sources are already telling news outlets that Circle will delay further IPO filings and will indeed push back plans to go public for now.

Public Keys is a weekly roundup from Decrypt that tracks the key publicly traded crypto companies. This week: Circle toes the IPO line with a Coinbase partnership debuff, MicroStrategy could be a 3 percenter soon, Bakkt is back in trouble, and Decrypt reporter Matt Di Salvo explains why experts say midsize Bitcoin miners might need a wellness check in the coming months.

USDC issuer Circle is finally back in the ring after filing to go public earlier this week.

Another thing that caught investors’ eyes is just how much of a cash cow Circle has been for crypto exchange Coinbase. The exchange receives half of all the residual revenue Circle makes on the cash and cash-like reserves backing its stablecoin tokens.

Analysts at Ledger Insights posited that this could make the company an unattractive bet for investors.

“Circle spent more than a billion in 2024 in distribution costs, most of which went to Coinbase,” they wrote. “The biggest concern is whether this might constrain future opportunities.”

At the time of writing, unnamed sources have told Bloomberg that the company is already considering delaying its IPO the same week it was announced.

The Wall Street Journal went harder and reported Circle is already delaying filings and will indeed push back plans for an IPO. To be clear, this doesn’t mean Circle won’t be going public; it just might take a little longer now, given market conditions and the looming threat of Trump’s tariffs.

Perhaps it’s trying to negotiate a more favorable deal with Coinbase to sweeten the honeypot for potential investors.

It took four years for Strategy to acquire 1% of the 21 million Bitcoin supply, a milestone it reached this time last year. Then by December, the company had rapidly closed the gap and held 2% of the supply.

As of today, Strategy’s hulking Bitcoin treasury now accounts for 2.5% the BTC supply. It’s already halfway there to reaching 3%.

Strategy, which trades on the Nasdaq under the MSTR ticker, would have to add another 101,815 Bitcoin to reach its next milestone. If MSTR were to close that gap at current prices, it would be an $8.5 billion endeavor.

It’s not out of the question. The company spent more than $288 billion buying Bitcoin last year and has nearly matched that already. Strategy has already spent $282 billion buying Bitcoin in the first quarter of 2025.

The company’s 528,185 BTC treasury was acquired for an average cost of $67,458 and—at $43.9 billion—carries a 23.2% unrealized profit. That means that Strategy’s Bitcoin stockpile is worth 60% of its $72.9 billion market capitalization.

Two weeks ago Bakkt Holdings had bad news and good news.

Its crypto services business had lost two of its biggest clients—Webull and Bank of America. But not to worry, the Bakkt team told investors, there’s a new co-CEO coming in to launch a stablecoin service.

Well, some investors think Bakkt violated SEC rules by misrepresenting the stability and diversity of its crypto revenue.

In a class action lawsuit filed Wednesday in Manhattan, shareholders are claiming Bakkt and its officers made “materially false and/or misleading statements” about the company’s crypto revenue.

“Webull made up 74% of Bakkt’s crypto services revenue,” the lawsuit said, noting that at the time the company “derived 98% of its revenue from crypto services.”

The lead plaintiff, Guy Serge A. Frankin, had been a true believer in Bakkt since last year. Since June 2024, he’s acquired 8,812 shares for $191,419.82.

That’s an average cost per share of $21.72. But at the current $7.98 price for the stock, which trades on the NYSE under the BKKT ticker, his holdings are sitting on a $121,100.06 unrealized loss. Ouch.

As U.S. equities and crypto experience a sell-off, the shares of top Bitcoin mining companies have also plunged in price as President Trump’s trade war heats up.

American Nasdaq-listed miners such as MARA, Riot Platforms, and Bitdeer are all down by 9-13% over a five-day period.

Hive Digital, Cleanspark, and Core Scientific have also seen their share prices suffer—but not by as much.

The sell-off shows that no industry is immune from the current market volatility. American miners had already been feeling the crunch: Last month was the worst on record for 14 top public Bitcoin miners tracked by JP Morgan, the bank said in a report this week.

The top companies collectively shed 25%—or about $6 billion—of their value market cap in the month of March.

And there may not be light at the end of the tunnel, either. Decrypt went to the Mining Disrupt conference last week, where Shanon Squires, chief revenue officer at Compass Mining, said that mid-sized companies in the space may feel the most pain.

“The mid-size public companies might struggle the most with the extra cost of being a pubco plus low hash price and a harder to turn ship,” he explained, adding that the industry “feels very much like the oil and gas” one—and consolidation through mergers and acquisitions was likely.

Decrypt reporter Mat Di Salvo contributed to this report.

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