Stablecoin Issuer Circle is Going Public at $4.5 Billion Valuation

Forum 2 years ago

Stablecoin Issuer Circle is Going Public at $4.5 Billion Valuation

Circle, the cryptocurrency-oriented company behind the second-largest stablecoin (USDC), has outlined plans to go public through a merger with a SPAC.

Global fintech firm and developer of the USDC stablecoin, Circle, has revealed that it will be going public on the New York Stock Exchange (NYSE) via a new business alliance.

According to an official announcement today, Circle has partnered with Concord Acquisition Corp, a publicly traded special purpose acquisition company (SPAC) with more than $276 million in trust.

$4.5 Billion Valuation

Once the deal is completed, Circle will have an enterprise value of $4.5 billion. Additionally, all existing shareholders at Circle will still have 86% ownership of the company, with the co-founder and CEO, Jeremy Allaire retaining his position.

However, Bob Diamond, the Chairman of Concord Acquisition Corp, will join the company’s board of directors.

Several top investors, including Fidelity Management and Research, Marshall Wace, Adage Capital Management, Ark Investment Management, and Third Point, have all committed $415 million in private investment for public equity (PIPE) financing to support the new business.

As soon as the deal is finalized, a new Irish holding firm will acquire both Concord and Circle to become a publicly traded company, which will trade on the NYSE under the symbol “CRCL.”  

Speaking on the partnership, Concord’s chair Bob Diamond said, “Circle is the true pioneer of trusted digital currencies, an increasingly critical part of the global financial system.”

Diamond also noted that the firm had earned a strong reputation in building highly innovative blockchain-enabled products and services within the regulatory perimeter. According to him, Circle’s “world-class leadership team, track record, and extraordinary ambition” has helped position the organization as “one of the most exciting companies in the transformation of finance.”

Second U.S. Crypto Entity to go Public

Allaire also expressed enthusiasm about the deal, which is expected to be finalized in Q4 2021.

“Circle was founded with a mission to transform the global economic system through the power of digital currencies and the open internet… We are thrilled to partner with Concord’s executive and investment team, drawing on their decades of operating experience growing financial services businesses around the world,” he said.

Circle is set to become the second U.S. crypto entity to go public shortly after Coinbase’s direct listing. Following the impressive performance of the largest US crypto exchange, other American firms like Kraken and Robinhood are currently working on conducting an IPO later this year.