Circle, the USDC stablecoin issuer, has announced that it has terminated its merger with Specialized Acquisition Company (SPAC) Concord Acquisition to enter the public market.
Circle announced the deal in June 2021, when its preliminary valuation was $4.5 billion. Then, in February 2022, it increased to $9 billion, and the contract was renegotiated.
Under the terms of the contract, Concord Acquisition had until December 10 to complete the deal or get shareholders to vote for its extension. However, Concord Acquisition chose to wait until the contract expired.
Circle CEO Jeremy Allaire, despite the termination of the transaction, said that the issuer will continue to strive to build “trust and transparency, which is very important at this difficult time.”
Although the parties did not specify the reason for the cancellation of the deal, the prolonged crypto winter has led to a sharp revision in the valuations of many companies. In addition, the SPAC mergers have performed poorly, with the IPOX SPAC index down more than 40% since hitting an all-time high in February 2021.
In August, the uncertainty of the cryptocurrency sector, high inflation and rising interest rates led to the termination of the Prime Blockchain and SPAC 10X Capital Venture merger agreement.
Source: Bits
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