- Circle will become a public company through combining with SPAC Concord Acquisition Corp.
- The firm operates USDC, one of the world's largest dollar-pegged stablecoins, with over $25 billion in circulation
- Shares of Concord Acquisition Corp jumped as much as 5% Thursday after the announcement.
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Crypto firm Circle will merge with SPAC Concord Acquisition Corp in a transaction that values the fintech company at $4.5 billion.
Shares of Concord Acquisition Corp jumped as much as 5% Thursday after the announcement.
Circle is the principal operator of USDC, one of the world's largest dollar-pegged stablecoins with over $25 billion in circulation. Circle said USDC circulation has grown over 3,400% in 2021 amid growing demand for low-friction digital payments and settlements.
The deal also includes $415 million in PIPE financing supported by institutional investors including Third Point, accounts advised by Ark Investment Management, and Fidelity Management and Research Company.
The transaction is expected to close in the fourth quarter of 2021. Upon completion of the transaction, existing Circle shareholders will maintain approximately 86% ownership of the newly public company. The company is expected to trade on the New York Stock Exchange under the ticker "CRCL." Circle's co-founder Jeremy Allaire will remain CEO.
Allaire told CNBC that Circle will use the proceeds of the transaction for product development and engineering as blockchain finance becomes "the backbone of the global financial system," as well as sales, marketing, and customer operations.
The Block first reported that Circle could go public via SPAC in May, after the firm raised $440 million in capital.