Crypto company Circle doubles valuation to $9bn as it eyes SPAC deal
Crypto company Circle has doubled its valuation to $9bn after inking a new deal with Concord Acquisition Corp.
Circle, the issuer of popular stablecoin USDC a digital asset pegged to the price of the dollar, announced yesterday that it has terminated its existing an earlier merger agreed with Concord, which had valued the the firm at $4.5bn.
The Boston-based company said that the amended terms of the deal reflect improvements to its financial outlook and market share. Since the deal was signed the market capitalization of USDC has more than doubled to $52.4bn.
“We continue to believe that Circle is one of the most interesting, innovative and exciting companies in the evolution of global finance and we believe it will have an historic impact on the global economic system,” said Bob Diamond, chairman of Concord and former Barclays boss.
“Circle’s rapid growth and world-class leadership are underscored by a regulatory-first mindset fixed on building trust and transparency in global markets. 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,” Diamond continued.
Stablecoins, such as USDC, are soaring in popularity because they convert assets into a digital form and allow them to be traded more easily.
The deal, which will see Concord and Circle merge to become a publicly traded business expected to launch on the New York Stock Exchange, is something of an outlier in a challenging SPAC market, which has seen several proposed mergers fall apart in recent weeks.
The deal, which requires the approval of shareholders, is expected to be completed by the end of the year, but could be extended to 31 January 2023 under certain circumstances, Circle said.
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