The company behind stablecoin USDC, Circle has announced the mutual termination of its Special Purpose Acquisition Company (SPAC) merger deal with blank-check firm Concord Acquisition Corp. The move comes nearly ten months after an earlier agreement was amended.
Circle CEO Jeremy Allaire explained that SEC had not granted the approval to move forward. The approval process, while lengthy, is essential, added Allaire. Though the stakeholders did not directly state the reason for the deal’s fallout, it is widely assumed that the ongoing crypto winter has caused many companies’ valuations to plummet.
The SPAC deal was announced in July 2021 with a preliminary valuation of $4.5 billion and was then amended in February 2022 bringing Circle’s valuation to $9 billion. As per the terms of the agreement, Concord was required to consummate the transaction or seek a shareholder vote for an extension until Dec 10. However, Concord chose to have the time limit lapse instead.
Allaire said, “We are disappointed the proposed transaction timed out; however, becoming a public company remains part of Circle’s core strategy to enhance trust and transparency, which has never been more important.”
Circle further elaborated that it became profitable in the third quarter of 2022 with total revenue and reserve income of $274 million. Meanwhile, it has a net income of $43 million with around $400 million on its balance. Among its plans, Circle also won in-principle approval from the Monetary Authority of Singapore (MAS).
Allaire emphasized that Circle is investing, building, and growing with a large and thriving ecosystem of companies and projects who are focused on bringing forward the version of a more efficient global financial system.
