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Circle And SPAC Abandon Plan To Issue IPO, CEO Calls It ‘Disappointing’: What’s Next

The board of both Circle Internet Financial and Concord Acquisition Corp. (NYSE:CND) have agreed that the stablecoin provider Circle would no longer be publicly listed.

The joint decision was announced by both companies on Monday.

Circle had been considering a merger with Concord Acquisition, a special purpose acquisition company (SPAC) backed by former Barclays CEO Bob Diamond.

Also read: USD Coin Founder Circle Doubles Valuation Ahead Of SPAC Merger

What is a SPAC?

A SPAC also referred to as a "blank check company," is a business entity created only for the purpose of raising cash through an IPO or merging with another business.

Circle would have been worth $9 billion under the terms of the agreement, double the $4.5 billion that was first disclosed in July 2021.

Circle is best known as the creator of the stablecoin USD Coin (CRYPTO: USDC), which is currently one of the most valuable cryptocurrencies and the second most valuable stablecoin by market value with a market capitalization of more than $43 billion.

Circle CEO Disappointed

According to Circle CEO Jeremy Allaire, the company maintained its profitability in the third quarter of 2022, reporting total sales of $274 million, inclusive of interest on its reserves, and a net income of $43 million.

Additionally, in the third quarter, Circle reported having $400 million in cash.

Allaire called the decision to end the contract "disappointing," but insisted that Circle is still committed to going public.

Next: Struggling Cryptocurrency Lender Genesis Owes Debtors $1.8B

Photo: Courtesy of circle.com.

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