USDC Issuer Circle Going Public via SPAC at a $4.5 Billion Valuation
Upon closing of the transaction, over $1.1 billion in total will be provided to Circle with participation from Marshall Wace, Fidelity, Adage Capital Management, ARK Investment, and Third Point.
Circle announced on Thursday that it is going public through SPAC on the NYSE under the symbol “CRCL.”
Circle is the issuer of USDC, the second-largest stablecoin with a market cap of $25.8 billion supply which supported more than $785 billion in on-chain transactions. In 2021, the stablecoin’s supply grew over 3,400% and captured a 23.7% stablecoin market share.
A special-purpose acquisition company (SPAC) is a shell company that raises money and trades on a stock exchange with the only purpose of merging with a private company, typically a startup, to take it public.
Circle has chosen Concord Acquisition Corp, which has $276 million in trust to go public, putting Circle’s valuation at $4.5 billion.
This transaction is supported by $415 million of capital commitments at $10.00 per share with participation from Marshall Wace, Fidelity, Adage Capital Management, ARK Investment, and Third Point.
The transaction is expected to deliver up to $691 million of gross proceeds to the combined company. Combining the amount with Circle's recently closed convertible note puts gross proceeds to over $1.1 billion that will go to Circle upon the close of the transaction.
Existing Circle shareholders will maintain about 86% ownership of the public entity.
“Circle was founded with a mission to transform the global economic system through the power of digital currencies and the open internet,” said Jeremy Allaire, co-founder, and CEO of Circle, adding: “We've made huge strides towards realizing this vision and through this strategic transaction and ultimate public debut, we are taking an even bigger step forward,” to build a global-scale internet financial services company.
Goldman Sachs serves as the exclusive financial advisor to Concord, and along with Citi, they are acting as placement agents.