Circle Hits $9 Billion Valuation Due to Renewed Merger Agreement with SPAC
Circle has agreed new terms for a reverse merger deal with SPAC Concord Acquisition Corp. The issuer of the stablecoin USD Coin (USDC) is valued at $9 billion, which is twice the amount that was previously announced.
Circle announced in July it planned to public through a reverse merger with Concord Acquisition Corp. It was reported that its shares would be listed on the New York Stock Exchange under the ticker CRCL. The value of the company before the merger was estimated at $4.5 billion.
The two-fold increase in valuation in the company was explained by an improvement in financial prospects and a competitive position. In particular, Circle noted an increase in the capitalization of its stablecoin USDC and the share of the asset in the total supply of stablecoins. According to the press release:
“USDC turnover has more than doubled since the initial deal was announced, reaching $52.5 billion as of February 16, 2022.”