Circle valued at $9bn in updated SPAC merger agreement

Circle agreed to new terms of the reverse merger deal with SPAC Concord Acquisition Corp. The issuer of USD Coin (USDC) was valued at $9 billion, double the previously announced amount.

Circle’s enterprise value has doubled — from $4.5 to $9B — since July 2021. Today we announced new transaction terms with our business combination partner, Concord Acquisition Corp. https://t.co/G4kbNlnnBV

— Circle (@circlepay) February 17, 2022

In July, Circle announced that will become a public company through a reverse merger with Concord Acquisition Corp. It was reported that its shares would list on the New York Stock Exchange under the ticker CRCL. The pre-merger value of the firm was estimated at $4.5 billion.

The doubling of the valuation was attributed to improved financial prospects and competitive position. In particular, Circle noted growth in USDC’s market capitalization and the asset’s share of the total stablecoin supply.

“Since the initial deal was announced, the turnover of USDC has more than doubled, reaching $52.5 billion as of February 16, 2022,” the press release states.

According to The Block, USDC is the second-largest dollar-stablecoin by market capitalization after the segment leader Tether (USDT). The latter’s dominance index stands at 44.72%.

The boards approved the new agreement. The deal is planned to close by December 8, 2022, with the possibility of extending this deadline to January 31, 2023. The merger is subject to regulatory and shareholder approvals.

In February 2022, Circle announced the launch of the USDC stablecoin on the Flow blockchain by Dapper Labs.

In December 2021, the issuer announced the launch of the asset on the Avalanche network.