Breaking: USDC Issuer Circle Terminates SPAC With Concord
Circle SPAC Termination News: Circle Internet Financial, the company behind stablecoin USDC, on Monday officially announced it was terminating its special purpose acquisition company (SPAC) with Concord Acquisition. The business combination was proposed with an initial announcement in July 2021. The companies said the termination of the business was marked with approval by the Board of Directors at Circe and Concord. The deal’s termination resulted due as the Securities and Exchange Commission (SEC) is yet to declare the business registration statement effective, they said.
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Circle SPAC – The Timeout
The Circle management expressed disappointment over the timing out of the proposed transaction. Jeremy Allaire, co-founder and CEO of Circle, said however that Circle’s strategy would continue to remain becoming a public company. Earlier in November 2022, Circle said it plans to further delay the acquisition to January 2023. The acquisition was originally scheduled to be completed in December 2022. This was amid prolonged delays in closing the acquisition deal since last year.
The latest announcement of Circle terminating the SPAC plans adds to the long list of crypto related issues associated with the U.S. SEC. The stablecoin issuer showed optimism around completion of qualification process with the regulation to be eligible to become a listed company. In July 2021, Circle announced its plans to go public on Nasdaq in a SPAC deal with a valuation of $4.5 billion.
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The development comes after the shrinking of USDC’s market capitalization in recent times. Owing to the crypto crash in 2022, USDC lost around 20% in market value over last three months. As of writing, USDC total market cap stands at $43.34 billion, according to price tracking platform CoinMarketCap.
What Is A SPAC?
The Special purpose acquisition company (SPAC) is created to facilitate acquisition or merger of a company with another to take the new company public. This is seen as an alternative option to initial public offering (IPO), while SPACs provide a faster timeline.
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