Circle has signed a new deal for a SPAC merger with Concord Acquisition Corp.
The new agreement gives Circle a $9 billion valuation, double its prior valuation from July 2021.
The new agreement is expected to be exercised in December 2022.
Share this article
Circle, the issuer of USDC, has shared new details regarding its transition to becoming a publicly trading firm. Its valuation is now $9 billion.
Circle’s Valuation Doubles Ahead of SPAC Merger
USDC issuer Circle has terminated last year’s SPAC merger deal terms with Concord Acquisition Corp. Due to a reappraisal of the Circle’s valuation, a new agreement has been signed.
According to a Thursday press release, the new agreement gives Circle a $9 billion valuation, double the $4.5 valuation penned in its original July 2021 agreement with Concord Acquisition.
Circle announced its plans to go public last summer through a merger with a special purpose acquisition company (SPAC) called Concord Acquisition Corp by end of 2021. SPACs are shell companies that conduct initial public offerings to merge with private firms and take them public.
Since the original deal was announced last year, USDC’s circulating supply has more than doubled, crossing $52.7 billion as of Feb. 17, 2022. The rise in the USDC supply prompted Circle to reassess its valuation, the announcement said.
The revised SPAC agreement accounts for Circle’s improved financial outlook, and its growing share of the total stablecoin market. Per the new SPAC agreement, both Circle and Concord Acquisition will be acquired by a single holding company in December 2022, but it can be extended until Jan. 31, 2023. The company will then be listed on the New York Stock Exchange under the stock ticker symbol CRCL.
While Circle’s valuation has doubled, Concord Acquisition’s market capitalization has consolidated around $370 million since July 2021. This means that Concord Acquisition’s shareholders will receive around half of the payout they would have received if the original deal had gone through. CND shares are down -3.76% on the day.
Nevertheless, Concord Acquisition’s management team has expressed positive sentiment regarding the deal. Commenting on the arrangement in the press release, Bob Diamond, Chairman of Concord Acquisition Corp, said:
“We believe our new deal is attractive because it preserves the ability of Concord’s public stakeholders to participate in a transaction with this great company.”
USDC is the world’s second-largest stablecoin by market capitalization, trailing only Tether (USDT).
Share this article
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
USDC Provider Circle to go Public in $4.5B SPAC Deal
Cryptocurrency payments firm Circle has confirmed its plans to become a publicly-traded firm through a SPAC deal in Q4 2021. Circle Plots SPAC Deal Circle will merge with Concord Acquisition,…
Visa Issuing Card for USDC Payments on Ethereum
Visa is doubling down on stablecoins. The credit card giant has announced a collaboration with Circle, the team behind the Ethereum-based token USDC. The partnership will give Visa’s network of…
Mastercard Partners with Circle to Settle USDC Payments
Mastercard has announced partnerships with Circle, Paxos, and Evolve Bank & Trust to facilitate simpler conversions between cryptocurrencies and traditional fiat money. Mastercard to Simplify Crypto Payments Mastercard has announced…
OVR – the largest decentralized AR Metaverse
OVR is the decentralized infrastructure for the metaverse, merging physical and virtual world through Augmented Reality, creating a new dimension where everything is possible. It’s composed of 1.6 trillion unique hexagons…