Circle, the firm that issues USDC stablecoins, declared that it had canceled its ambitions to buy publicly traded SPAC Concord Acquisition Corp. Circle has until December 10, 2022, to finish all necessary procedures after the acquisition agreement was finalized in July 2021. But five days before the deadline, the company abandoned the project.
It’s noteworthy that Concord and Circle mutually chose to discontinue the acquisition agreement. The boards of directors for both companies also gave their approval to the move. Additionally, it states,
“The transaction agreement also states that Concord can seek a shareholder vote to extend that date to January 31, 2023, if the Securities and Exchange Commission (SEC) has declared the S-4 registration statement for the business combination effective. To date, the S-4 registration statement has not been declared effective.”
The acquisition would have opened the door for the stablecoin issuer to join Coinbase. A leading cryptocurrency exchange in the US, as a publicly traded corporation. Furthermore, this would have further increased Circle’s estimated value to a staggering $9 billion. In a press release, the CEO of Circle, Jeremy Allaire, stated that the company’s goal to go public is still on the table despite the sale failing.
We are disappointed the proposed transaction timed out; however, becoming a public company remains part of Circle’s core strategy to enhance trust and transparency, which has never been more important.
Allaire also shared additional information about the canceled agreement on Twitter. According to the CEO, the company could not complete the “SEC certification” necessary to close the purchase. As per Allaire, the American regulatory agency “was rigorous and comprehensive in understanding”. The company and the various facets of the cryptocurrency space. The actions needed to “ultimately provide trust,” he continued, were listed in his statement.
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The firm’s Q3 report was another topic that the CEO covered. He noted that it generated $274 million in sales, of which $43 million was the net profit.
While there are a lot of challenges within the crypto and blockchain industry, I am of the very firm conviction that we are going to decisively leave the speculative value phase and enter the utility value phase, and stablecoins such as USDC will play a huge part.