Circle, the USD Coin (USDC) operator, doubled its valuation to $9 billion after the company renegotiated its merger agreement with Concord Acquisition Corp, a Specialized Acquisition Company (SPAC) founded in 2020.
On Thursday, Circle announced that it had terminated its previous terms of business combination with Concord and reached a new agreement expected to be finalized by December 8, 2022, with an option to extend through January 31, 2023. As reported by Cointelegraph, Circle and Concord first announced their merger plans in July 2022.
A spokesperson for Circle told Cointelegraph that the new agreement reflects a commitment from both parties to move forward with the deal after it became clear the original closing date would not be met. They explained:
“It was clear that the original transaction would not be closed within the time frame foreseen in the original business combination agreement (April 3, 2022). As part of negotiations to extend the deal, Circle’s value has been updated to reflect USDC’s improved financial performance and competitive position, as well as a new start date of December 8, 2022.”
Under the original agreement, Circle remains committed to becoming a public company once the business merger is completed and a new company is appointed. This new company will acquire Circle and Concord and become a publicly traded company listed on the New York Stock Exchange under the ticker “CRCL”.
“While we continue to work diligently to complete this transaction, the timing will ultimately depend on many factors beyond our control, including the SEC’s review of our S-4 registration statement,” the spokesperson said.
Related: Will US Regulators Shake Stablecoins into High-Tech Banks?
$50 BILLION (with thread below) pic.twitter.com/5FEaPmXjup — Jeremy Aller (@jerallaire) February 1, 2022
Circle has built a strong reputation in the cryptocurrency industry for its focus on regulatory compliance and proof of full backing of its USD reserves. Earlier this month, Circle launched its $50 billion coin, trailing only USDT Tether in terms of stablecoin market capitalization. At a current value of $52.6 billion, USDC accounts for over 29% of the stablecoin market, according to CoinMarketCap.
Collectively, the stablecoin market is valued at $180.1 billion, up from about $10 billion in mid-2020.
