Clear Street is preparing to go public in a deal that, according to people close to the plan, could value the New York broker between $10 billion and $12 billion.
According to Financial Times, the company wants to transition as soon as next month, although timelines may change as Goldman Sachs is expected to conduct the transaction and prefers a window in January.
Clear Street has been active throughout the year in the crypto treasury community, advising companies looking to access digital tokens while markets pushed prices to record levels.
Clear Street launched in 2018 and quickly grew as more public companies sought to strengthen their balances with bitcoins and other tokens. The trend emerged from Strategy, a group led by Michael Saylor, which has raised billions in debt and equity since 2020 to purchase 650,000 bitcoins.
Several companies have repeated this step this year and hired Clear Street to help structure their offerings. One advisor close to these deals says the firm has become an 'easy choice for anyone looking to raise funds around crypto assets.'
Detail how Clear Street is expanding its deal-making activity
The firm has taken a strong position in cryptocurrency-related stocks, including work for Strategy, which turned its bet on bitcoin into one of the largest stories in the public markets.
Clear Street also struck deals for Trump Media & Technology Group, which earlier this year announced plans to raise billions to create its own bitcoin fund. The broker's website lists $91 billion in equity, debt, and mergers and acquisitions deals this year, including deals related to Anthony Pompliano and Vivek Ramaswamy.
The crypto treasury model is now under pressure as token prices have fallen from their peaks. Strategy's stock has dropped by 60% over six months. Bitcoin has fallen by 30% since the beginning of October.
Many of the smaller companies that are copying Strategy are now trading below the market value of the tokens they hold, making it difficult for them to raise new funds for further purchases.
Clear Street continues to move forward with its IPO in a year when U.S. listings have been stable but not strong. Dealogic data indicates that there have been 316 IPOs since January, raising about $63 billion, the largest since 2021.
But several big names have struggled after debuting. Figma jumped in July when investors valued it at $60 billion, but its stock has since fallen nearly 70%, turning it into one of the sharpest declines after a listing this year.
