By
Bhushan Akolkar
April 26th, 2024
The firm revealed the plans on Thursday, noting that the deal will value Circle at an enterprise value of $4.5 billion.
Circle Internet Financial Inc, the primary operator of the USD Coin (USDC) stablecoin is set to go public via a merger with Concord Acquisition Corp (NYSE: CND), a publicly-traded Special Purpose Acquisition Company (SPAC).
Renowned for its backing of USDC, the stablecoin has attained global prominence in the cryptocurrency ecosystem, serving as a viable alternative to the highly controversial Tether (USDT). At present, USDC has a global circulating supply of $25.88 billion and it has gained traction for powering businesses and mainstream financial transactions across the board.
The stablecoin is regulated, standing as a pioneer of transformative cryptocurrency innovation in today’s digital currency ecosystem.
“Circle is the true pioneer of trusted digital currencies, an increasingly critical part of the global financial system. The firm has earned its exceptionally strong reputation building highly innovative blockchain-enabled products and services within the regulatory perimeter,” said Bob Diamond, Chairman of Concord Acquisition Corp and CEO of Atlas Merchant Capital, “Circle’s world-class leadership team, its track record of delivery, and extraordinary ambition help position the firm as one of the most exciting companies in the transformation of finance.”
As a publicly traded outfit, Circle will gain enough liquidity to broaden its global expansion and deliver decentralized financial products and services. Per the comments from Jeremy Allaire, Circle’s co-founder and Chief Executive Officer, the company will not relent in pushing forth new innovations in the digital currency ecosystem and the internet world at large.
“Circle was founded with a mission to transform the global economic system through the power of digital currencies and the open internet,” he said, adding “We’ve made huge strides towards realizing this vision, and through this strategic transaction and ultimate public debut, we are taking an even bigger step forward, with the capital and relationships needed to build a global-scale internet financial services company that can help businesses everywhere to connect into a more open, inclusive and effective global economic system.”
Details of the USDC Circle SPAC Deal
When Coinbase Global Inc (NASDAQ: COIN) went public via direct listing earlier in the year, the firm was valued at more than $85 billion after seeing impressive first day on the public bourse. For Circle, the size of the deal is much smaller and it is supported by $415 million of capital commitments at $10.00 per share.
When the merger transaction gets completed by the end of the fourth quarter of this year, the deal is expected to “deliver up to $691 million of gross proceeds to the combined company,” as noted by the company.
When the deal pulls through, current Circle shareholders will own exactly 86% of the new company, Jeremy Allaire is billed to continue as the CEO, while Bod Diamond will be joining the board. Circle, the USDC issuer is billed to trade on the NYSE under the symbol “CRCL”. Per the announcement, additional details about the transaction will be unveiled when it files its Form 8-K with the Securities and Exchange Commission (SEC).
While the deal has been appended by the board of both Circle and Concord Acquisition Corp, the final approval, according to the company is subjected to the position of both firm’s shareholders.