Crypto and AI IPOs Lag as 2025 Debuts Fall Behind S&P 500

Crypto and AI focused IPOs weighed on overall US public market returns last year, leaving new listings behind the broader stock market. Data cited by Bloomberg shows shares of companies that went public in 2025 rose 13.9% on a weighted average basis. Over the same period, the S&P 500 gained 16%.

The gap came despite strong early demand for crypto stocks. The Trump administration helped reopen capital markets for digital asset firms, drawing billions in new listings. Still, post IPO trading showed uneven results, with several high profile names giving back most of their gains.

Strong IPOs Fade After Listing

Stablecoin issuer Circle Internet Group delivered one of the year’s largest debuts. The company raised $1.05 billion in June after pricing shares at $31. The stock jumped 170% on its first day, marking one of the strongest openings of 2025.

That strength did not hold. As Bitcoin pulled back from its October high, Circle shares lost momentum. The stock closed 2025 at $79.30, below its debut day close. After peaking above $263, shares have fallen close to 70%. Circle closed Monday at $84.80.

Other crypto IPOs struggled even more. The Winklevoss backed exchange Gemini went public in September at $28. Shares briefly climbed above $32.50 before selling off hard. By Dec. 31, the stock had dropped 64.5% to $9.92. Gemini traded slightly higher at $11.12 on Monday.

Bullish, another crypto exchange, listed in August. Shares opened at $37 and surged to $68 on day one. Gains faded over time, with the stock ending 2025 near $37.87, close to its IPO price.

AI Bets Also Miss Targets

AI focused IPOs showed similar weakness. Data center developer Fermi and expense platform Navan both traded below their debut levels after listing. Heavy spending needs and slower revenue growth weighed on share prices.

According to PwC, mid sized IPOs faced the most pressure. Deals priced between $500 million and $1 billion gained just 5.6% on average. Listings above $1 billion rose about 20%.

PwC’s US IPO lead Mike Bellin said 2025 marked a clear shift in investor behavior. Capital flowed only to firms with strong cash flow and clear plans. Large deals performed better, while weaker stories sold off fast.

The year’s largest IPO, Medline’s $7.2 billion listing, is up 40% since mid December. In contrast, gas exporter Venture Global cut its $1.75 billion deal by 40% and still saw shares fall 72%.

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