Fintech Circle ending $9 billion deal with Concord Acquisition

In February, Circle doubled its valuation to $9 billion after a deal with blank-check company Concord Acquisition Corp, doubling its value since July 2021 when the initial agreement valued the company at $4.5 billion. A ten month period has passed since an earlier agreement was amended. The deal appears to be dead.

The backer of USDC stablecoin announced today that it has decided to end a $9 billion deal with blank-check firm Concord Acquisition Corp. The fintech startup did not elaborate on its plans to go public. Circle reported a net income of $43 million and nearly $400 million in cash in the third quarter.

The announcement came at a time when the markets valuation has been wiped out of $2 trillion due to the winter. More than 75 percent of the world's largest criptocurrency has lost 75 percent from its record high of $69,000.

The proposed transaction timed out, however, remains part of Circle's core strategy to enhance trust and transparency, which has never been more important, said Jeremy Allaire, Co-Founder and Chief Executive Officer of Circle.

SPAC is a shell company that has no operations but plans to merge with a company that uses the proceeds of the SPAC IPO's initial public offering IPO. There are 29 deals that have been reported by the SPAC analytics firm, SPACAnalytics.com.

Circle's stable coinUSDC, especially Circle's stable coin, has increased in reach and popularity over the years. It's common for traders to use Stablecoins as a safe haven by shifting their unstable token to safe real currency like the dollar because wild market fluctuations make it unsafe to hold. Stablecoins are cryptocurrencies without volatility unlike regular cryptocurrencies likeBitcoin and Ether.

Bob Diamond, chairman of Concord Acquisition Corp. and CEO of Atlas Merchant Capital said that Circle is one of the most interesting, innovative, and exciting companies in the evolution of global finance. Circle's rapid growth and world-class leadership are underlined by a regulatory-first mindset that is focused on building trust and transparency in global markets. Our new deal keeps the ability of the public to participate in a transaction with this great company, which is why we believe our new deal is attractive. Circle has made a lot of strides towards transforming the global economic system through the power of digital currencies and the open internet, said Jeremy Allaire, Circle's co-founder and CEO. As a public company, it will strengthen trust and confidence in Circle and will be a critical milestone as we continue our mission to build a more inclusive financial ecosystem. The journey with Concord under our new agreement is a strategic accelerator.