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 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 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.”
