Crypto firm Circle planning to go public through a SPAC deal

Crypto firm Circle planning to go public through a SPAC deal

Circle, a leading cryptocurrency firm, has reportedly announced that it soon plans to go public through a SPAC deal. The firm would supposedly be merging with a SPAC known as Concord Acquisition Corp.

Circle is most recognized for being one of the founding members of the Centre consortium, which also includes Coinbase. In collaboration with its crypto partners, the firm has released USD Coin, a popular stablecoin.

Circle estimates that the SPAC deal should value the firm at approximately $4.5 billion. More than $415 million in PIPE financing has been committed by the investors that are involved in the merger.

Meanwhile, the firm also recently secured over $440 million in funding. This implies that if the deal goes through, Circle will have a lot of capital on its hands.

The cryptocurrency firm was founded in 2013 with the goal of creating a widespread bitcoin payment network. However, the firm eventually changed course and developed a social payments app. Circle has essentially evolved into a Venmo clone using blockchain technology at its core.

In 2016, Jeremy Allaire, CEO and co-founder of Circle, had stated that Circle never considered itself to be a bitcoin start-up. The firm was undoubtedly labeled as such by the media because of its involvement with the technology. The firm has been attempting to establish a new consumer finance enterprise since it started the business.

While that consumer play failed to pan out, it's fascinating to note that Allaire was already thinking about shifting money programmatically. In 2017 and 2018, the firm shifted its attention to cryptocurrency once more. For large bitcoin investors, it created an over-the-counter trading desk.

The firm purchased Poloniex, one of the major cryptocurrency exchanges in the United States at the time. It launched Circle Invest, a smartphone app that allows people to buy and sell a limited number of cryptocurrency assets.

However, USD Coin (USDC), the company’s stablecoin has been its most promising product. Currently, there are approximately $25 billion worth’ of USDC in circulation and the firm estimates that this number would hit the $190 billion mark by the end of 2023.

Source credit: https://techcrunch.com/2021/07/08/cryptocurrency-company-circle-to-go-public-in-spac-deal/