Circle Revises Merger Terms With Concord, Doubles In Valuation To $9 Billion

Circle, the financial technology firm behind the USDC stablecoin, has revised its merger agreement with Concord, a special purpose acquisition company (SPAC).

According to the revised merger agreement, the partners will form a new business entity that would later pursue public listing on the New York Stock Exchange (NYSE). The previous business combination terms made in July 2021 over a $4.5 billion blank-check deal. This has since been terminated, with the new agreement set for finalization this year on December 8, 2022. This may further be extended to January 31, 2023, according to Circle and Concord.

“It was clear that the original deal would not be closed within the time parameters of the original business combination agreement (April 3, 2022). As part of the negotiation to extend the deal, the value of Circle was updated to reflect improved financial performance and the competitive position of USDC," shared a Circle spokesperson.

Circle remains firm on its commitment to eventually become a publicly-traded company, and will strategize this move alongside the merger. According to Circle, the forthcoming company based on the merger will acquire both Circle and Concord. Plans on the NYSE listing indicate that the business will be listed with "CRCL" as its ticker symbol.

Most of Circle's strong track record in the crypto industry is retained from its positioning as a crypto firm backed by major financial institutions such as U.S. investment bank Goldman Sachs, as well as its emphasis on regulatory compliance and auditing transparency with regards to the fiat backing of its USDC reserves. Circle is also a major stablecoin partner for Visa, a global payments technology firm.

Circle's revision of its merger agreement with Concord has led to its speculative valuation reaching over $9 billion, with USDC's market capitalization of $52.6 billion, accounting for roughly 29% of the entire stablecoin market. Since the introduction of stablecoins such as USDC, the stablecoin market has grown to be worth $180 billion, a significant increase since its initial adoption phase in mid-2020.

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