Circle Internet Financial, issuer of the USDC stablecoin, has doubled its valuation to $9 billion in a renegotiation of its Spac deal with Concord Acquisition Corp, the blank check firm run by former Barclays bigwig Bob Diamond.
The new deal replaces the prior $4.5 billion business combination agreement, which could not be completed by the termination date of April 3, 2022.
The increase in value reflects improvements in Circle’s financial outlook and competitive position - particularly the growth and market share of USDC. Circulation of the digital currency has more than doubled since the original deal was announced, reaching $52.5 billion as of February 16, 2022.
“We continue to believe that Circle is one of the most interesting, innovative and exciting companies in the evolution of global finance and we believe it will have an historic impact on the global economic system,” says Diamond. “Circle’s rapid growth and world-class leadership are underscored by a regulatory-first mindset fixed on building trust and transparency in global markets. We believe our new deal is attractive because it preserves the ability of Concord’s public stakeholders to participate in a transaction with this great company.”
Under the terms of the new agreement, the holding company that was set up in connection with the original business combination will acquire both Concord and Circle and become a publicly-traded business, expected to trade on the Nyse under the symbol 'CRCL'.
The new agreement has an initial outside date of December 8, 2022, with the potential to extend such date to January 31, 2023 under certain circumstances.