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Special purpose acquisition company Concord Acquisition Group plans to further delay USDC issuer Circle’s acquisition to January 2023. Circle’s CEO Jeremy Allaire earlier confirmed plans to go public in Q4 2022 after closing the acquisition deal. Meanwhile, the USD Coin (USDC) market cap continues to shrink as compared to the rival stablecoin USDT.
SPAC Plans to Delay $9 Billion Circle Acquisition
According to a filing with the U.S. SEC, Concord Acquisition Group plans to extend the acquisition of Circle Internet Finance to January 31, 2023. The acquisition was set to be completed in December, after continued delays in closing the acquisition deal since last year.
The SPAC seeks stockholders’ approval on the above proposal to delay the acquisition. In addition, stockholders will also vote on another proposal to allow the chairman to further delay the acquisition under conditions of insufficient votes to approve the foregoing proposal. The board recommends stockholders approve the delay to have the opportunity to participate in the investment.
In July, Circle’s CEO Jeremy Allaire stated the transaction would close in Q4 this year. Also, it will go public in Q4 in combination with Concord Acquisition Group. However, Circle hints the SEC is behind the delay. USDC issuer earlier stated that the company looks to complete the qualification process with the SEC to become a listed company. The regulator remains skeptical about trust, transparency, and accountability concerns with Circle.
The crypto crash and regulatory scrutiny regarding stablecoins led to an initial delay in the acquisition deal in June. However, regulators’ strict stance on stablecoins and DeFi remains until regulatory frameworks are introduced for the new asset class. Moreover, the bear market and Fed’s hawkish stance on rate hikes also impacted the acquisition.
USDC Market Cap Fall
Moreover, the USDC market cap has fallen immensely since the crypto crash. The market cap plunged below $50 billion in September after whales and investors sold their USDC holdings amid sanctions on Tornado Cash.
At the time of writing, the USDC market cap is $43.60 billion. Meanwhile, the USDT market cap continues to rise after a fall during the crypto crash. USDT’s market cap is $69.40 billion.
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