- 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).
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…
Audience Survey: Win A $360 Subscription To Pro BTC Trader
We’re doing this because we want to be better at picking advertisers for Cryptobriefing.com and explaining to them, “Who are our visitors? What do they care about?” Answer our questions…
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…