USDC stablecoin issuer Circle enters into a new, better deal with Concord Acquisition Corporation to list shares on the NYSE.
Cryptocurrency company Circle announced that it has improved the terms of its deal with Concord Acquisition, which specializes in mergers and acquisitions (SPAC), in order to enter the public market compared to the previous one. This time, the market value of Circle should be $9 billion.
The contract has been approved by shareholders and regulators. The deal is due to close by the end of 2022, after which the combined company will trade on the New York Stock Exchange (NYSE).
The deal announcement notes that the new terms reflect an “improved financial outlook for Circle.” The company believes that the upcoming increase in the US Federal Reserve’s (Fed) key rate could increase the interest that Circle earns on the reserve of dollars backing the stablecoin.
It is worth noting that during the previous deal to acquire Concord Acquisition, Circle was valued at only $4.5 billion.
Despite the changed terms of the contract, the head of Concord Acquisition Bob Diamond (Bob Diamond) is confident that the new terms of the deal are well in line with the current prospects for Circle.
“We continue to believe Circle is one of the most exciting, innovative and exciting companies in the evolution of global finance and we believe it will have a historic impact on the global economic system.”
In its own financial filings for the previous deal, Circle noted significant shortcomings. The firm said it then inflated compensation costs due to payroll issues and repriced convertible debt.
In February, Circle founder and CEO Jeremy Allaire revealed that the USDC stablecoin’s market capitalization has grown by 10,000% to $50 billion since 2019. Last year, Jump Capital partner Peter Johnson, who invests in the sector fintech and cryptocurrencies, said that the main growth of the stablecoin market will be provided by USDC and UST, gradually displacing USDT.
Source: Bits
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