Circle abandons SPAC plan to go public

The company behind the stablecoin USD Coin (USDC), Circle, terminated its reverse-merger deal with SPAC Concord Acquisition Corp.

1/ Some big @circle news. This morning, we announced the termination of our proposed deSPAC transaction. While disappointing that we did not complete SEC qualification in time, we remain focused on building a long-term public company. https://t.co/R0XYfCFD54

— Jeremy Allaire (@jerallaire) December 5, 2022

“Although we are disappointed that we did not meet SEC requirements for going public in time, we remain focused on building a long-term public company,” wrote Circle co-founder and CEO Jeremy Allaire.

According to the press release, the decision was mutual—approved by the boards of directors of the two organisations.

“Concord has been a strong partner and has been beneficial throughout this process, and we will continue to rely on the guidance and support of Concord’s chairman Bob Diamond and the Concord team,” said Allaire.

In July 2021 Circle announced that will become a public company 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 valuation of the firm prior to the merger was $4.5 billion, but in February 2022 the amount rose to $9 billion. The boards of the two companies also approved a new agreement. The deal was planned to close by December 8, with the possibility to extend the period to January 31, 2023.

In November, Circle disclosed equity investments in the bankrupt FTX Group for about $10.6 million.

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