{"id":14541,"date":"2022-02-18T01:30:07","date_gmt":"2022-02-18T01:30:07","guid":{"rendered":"https:\/\/mailinvest.blog\/index.php\/2022\/02\/18\/circle-signs-new-spac-merger-deal-on-a-valuation-of-9b\/"},"modified":"2022-02-18T01:30:07","modified_gmt":"2022-02-18T01:30:07","slug":"circle-signs-new-spac-merger-deal-on-a-valuation-of-9b","status":"publish","type":"post","link":"https:\/\/mailinvest.blog\/index.php\/2022\/02\/18\/circle-signs-new-spac-merger-deal-on-a-valuation-of-9b\/","title":{"rendered":"Circle signs new SPAC merger deal on a valuation of $9B"},"content":{"rendered":"

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Cryptocurrency and blockchain services provider Circle Internet Financial Inc. has announced that it will now go public via a\u00a0special purpose acquisition company in a new deal that values it at $9 billion.<\/p>\n

Circle announced in July<\/a> that it intended to go public with\u00a0Concord Acquisition Corp. in a deal that valued it at $4.5 billion. It\u2019s now February and Circle has yet to proceed with its SPAC merger.<\/p>\n

The company has terminated its original SPAC deal with\u00a0Concord Acquisition Corp. and entered a new agreement with a $9 billion valuation. Circle claims that the increase in value reflects improvements in Circle\u2019s financial outlook and competitive position. Circle claims that the increase is due to the growth and market share of USDC, one of the most popular stablecoins.<\/p>\n

A stablecoin is a form of cryptocurrency pegged to a stable reserve asset such as the dollar or gold. By being pegged, the price remains mostly stable and volatility is reduced compared with other cryptocurrencies. Stablecoins have grown in popularity for making transfers between exchanges and for day-to-day commerce.<\/p>\n

USDC\u2019s circulation has more than doubled since the original deal was announced, reaching $52.5 billion as of Feb. 16.<\/p>\n

The obvious question is when the Circle\/ Concord SPAC merger will proceed, given that it has been sitting on the table for seven months. The new alleged date is before April 3 \u2013 that\u2019s when the new SPAC merger deal expires.<\/p>\n

\u201cCircle has made massive strides toward transforming the global economic system through the power of digital currencies and the open internet,\u201d Jeremy Allaire (pictured), co-founder and chief executive officer of Circle, said in a statement<\/a>. \u201cBeing a public company will further strengthen trust and confidence in Circle and is a critical milestone as we continue our mission to build a more inclusive financial ecosystem.\u201d<\/p>\n

Under the original deal, Circle was also said to be raising\u00a0$415 million in private investment in public equity. PIPE participants included Marshall Wave, Fidelity Management, Adage Capital, accounts advised by ARK Investment and Third Point. It\u2019s not mentioned by Circle that the PIPE funding is part of the new SPAC merger deal.<\/p>\n

Photo:\u00a0World Economic Forum\/Flickr<\/a><\/h5>\n
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