Stablecoin Developer Circle To Go Public Via SPAC Deal At $4.5 Billion Valuation

Stablecoin Developer Circle To Go Public Via SPAC Deal At $4.5 Billion Valuation

Circle, principal developer of the second largest stablecoin USD Coin (USDC), is going public via a merger with Concord Acquisition Corp, a publicly traded special purpose acquisition company led by former CEO of Barclays Bob Diamond. The transaction values Circle at $4.5 billion and comes on the heels of Circle’s $440 million fundraise, completed in May, – the largest venture round ever raised by a crypto startup.

Under the terms of the deal, announced today, an unnamed new Irish holding company will acquire both Concord and Circle and become a publicly traded company, expected to trade on the New York Stock Exchange under the ticker CRCL. The transaction is expected to close in the fourth quarter of 2021, subject to approval by shareholders of Concord and Circle and any applicable regulatory approvals.

With the contribution of up to $276 million of cash held in Concord’ trust account and $415 million in PIPE financing from institutional investors including Marshall Wace, Fidelity Management & Research Company, Adage Capital Management and accounts advised by ARK Investment Management and Third Point, the arrangement is expected to deliver up to $691 million of gross proceeds to the combined entity. Existing Circle shareholders will maintain approximately 86% ownership interest of the public company. Concord’s chairman Diamond will join the board.

“We see in the coming years an opportunity to build a really defining franchise in the financial services space,” Jeremy Allaire, co-founder and CEO of Circle, told Forbes ahead of the announcement.

USDC, governed by both Circle and U.S. largest crypto exchange Coinbase, has grown by more than 3400% this year. The asset now stands at $25 billion in circulation and the company claims it has supported more than $785 billion in on-chain transactions.

The story is developing.

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