Confirmed: Stablecoin firm Circle to go public via SPAC merger

Quick Take

  • Stablecoin firm Circle is merging with blank cheque company Concord Acquisition Group. 
  • The deal will deliver up to $691 million of gross proceeds to the newly formed company.

Circle, the crypto firm that operates leading stablecoin USD Coin (USDC), has agreed to go public through a merger with a Special Purpose Acquisition Company (SPAC) named Concord Acquisition Corp.

The announcement confirms an earlier report from The Block.

The deal values Circle at $4.5 billion and comes after Circle raised $440 million from investors including Fidelity, Valor Capital Group and the London-based hedge fund Marshall Wace in May.

It will see a new Irish holding company acquire both Concord and Circle to become a publicly traded entity that is expected to trade on the New York Stock Exchange under the ticker CRCL.

Bob Diamond, chairman of Concord Acquisition Corp, CEO of Atlas Merchant Capital and former CEO of British bank Barclays plc, touted Circle “as one of the most exciting companies in the transformation of finance” in a statement.

There is currently more than $25 billion of Circle’s stablecoin USDC in circulation, which has supported more than $785 billion in on-chain transactions, according to a press release issued by the company.

“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, Circle’s co-founder and CEO.

He added that going public would give Circle “the capital and relationships needed to build a global-scale internet financial services company that can help businesses everywhere to connect into a more open, inclusive and effective global economic system.”  

Deal terms

The newly merged entity will be supported by $415 million in capital commitments at $10 per share, with investment from Marshall Wace, Fidelity Management & Research Company LLC and Adage Capital Management LP.

Added onto that sum will be the $276 million held by Concord, raised through an Initial Public Offering in December 2020, meaning the deal will deliver up to $691 million of gross proceeds to the newly formed company, per the announcement. Proceeds from the deal will be spent on growth and product development.

Existing Circle shareholders will keep hold of roughly 86% of the shares in the combined company.

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