Circle, the cryptocurrency company behind the USDC stablecoin, has reportedly ended plans to go public after canceling its plans. Special Purpose Acquisition Company (SPAC) Transaction When Concord Acquisition Corporation
The companies have decided to end a proposed business combination that would have paved the way for an initial public offering.
The Boards of Circle and Concord have reportedly decided not to go public through SPAC after reviewing their options.
Circle was reportedly planning to go public through SPAC, but it’s still unclear why the two companies abandoned the plan.
The stablecoin issuer issued a press release announcing the termination, outlining that the action to cancel the merger was “taken after careful consideration and approval by both boards.”
Circle CEO Jeremy Allaire said in a tweet that the business has continued to perform “strongly” since the merger announcement, and has already registered “positive momentum” in the third quarter of 2022, with an estimated total revenue of $274 million in net income. The document further reiterated that he had nearly $400 million in unlimited cash.
Circle and Concord originally announced plans for a SPAC merger in July 2021. Meanwhile, the deal was renegotiated in February of this year, doubling Circle’s valuation from $4.5 billion to $9 billion.
A SPAC or Special Purpose Acquisition Company is a company formed solely for the purpose of forming a merger, expanding a business partnership, or reorganizing assets.
Despite canceling the SPAC transaction, the USDC issuer said it would continue to explore other avenues to become a public company. The company also noted its commitment to “build the infrastructure and services that enable the global cryptocurrency economy.”
The news comes after Circle announced in April that it had raised $400 million in a round led by BlackRock, Fidelity, Fin Capital and Marshal Wace LLP. A Series E round brought the company’s valuation to his $3 billion.