Circle Doubles Valuation to $9B with New Reverse Merger Terms

Circle, the issuer of stablecoin USDC, has doubled its valuation to $9 billion after it renegotiated and inked a fresh reverse merger deal with Concord Acquisition Corp, a blank-check acquisition company. Both these companies first revealed their merger and acquisition plan in July 2021.

Announced on Thursday, the revised valuation of the company came after consideration of its financial outlook and competitive position in the market. It is bullish about the growing market share of USDC, which has become one of the largest stablecoins with circulation reaching $52.5 billion in mid-February.

Additionally, Circle took an alternate approach than its competitor Tether and maintained transparency of its USD-pegged stablecoin Stablecoin Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Unlike other cryptocurrencies like Bitcoin and Ethereum, stablecoins are cryptocurrencies that have been designed to keep a stable value. Placing a greater emphasis on stability over volatility can be a huge draw for some investors. Many individuals can be turned off from large swings and uncertainty presented by cryptos relative to other traditional assets.Stablecoins control for this volatility by being pegged to another cryptocurrency, fiat money, or to exchange-traded commodities, including Read this Term with regulator third-party audits.

“Circle has made massive strides toward transforming the global economic system through the power of digital currencies and the open internet,” said Jeremy Allaire, the Co-Founder and CEO of Circle.

Need for New Terms

Centroid and Circle were already in talks for the reverse merger Merger A merger is defined as the absorption of the interest of another. It can include an estate, or contract. There are no specific rules or formats for a union in general. It is a method of combining two or more organizations, business concerns, or other related interests. The terms of a merger are usually by agreement of the parties involved. In the financial sphere, merger refers to an agreement between two or more companies or corporations, public and private, to merge into one entity. Mergers d A merger is defined as the absorption of the interest of another. It can include an estate, or contract. There are no specific rules or formats for a union in general. It is a method of combining two or more organizations, business concerns, or other related interests. The terms of a merger are usually by agreement of the parties involved. In the financial sphere, merger refers to an agreement between two or more companies or corporations, public and private, to merge into one entity. Mergers d Read this Term deal for a while. Moreover, they formed an initial deal earlier, but the companies realized that it could not be closed before the deadline of April 2022.

Under the new agreements of the deal, Centroid and Circle will be acquired by a holding company that will list its shares publicly on the New York Stock Exchange (NYSE).

“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 a historic impact on the global economic system,” Bob Diamond, Concord’s Chairman and Atlas Merchant Capital’s CEO, said.

“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.”