USDC issuer Circle terminates SPAC merger with Concord

According to a caller property merchandise published connected Dec. 5, USD Coin (USDC) issuer Circle announced the communal termination of its projected merger with peculiar intent acquisition company, oregon SPAC, Concord Acquisition. The woody was announced successful July 2021 with a preliminary valuation of $4.5 billion and was past amended successful February 2022 erstwhile Circle's valuation ballooned to $9 billion. USDC is presently the 2nd largest stablecoin successful circulation, with a marketplace headdress of $43 billion. 

Under the presumption of the agreements, Concord had until Dec. 10 to consummate the transaction oregon question a shareholder ballot for an extension. However, it appears that Concord chose to person the clip bounds lapse instead. As told by Circle CEO Jeremy Allaire:

"Concord has been a beardown spouse and has added worth passim this process, and we volition proceed to payment from the proposal and enactment of Bob Diamond and the broader Concord team. We are disappointed the projected transaction timed out; however, becoming a nationalist institution remains portion of Circle's halfway strategy to heighten spot and transparency, which has ne'er been much important."

Circle further reiterated that it "became profitable successful the 3rd 4th of 2022, with full gross and reserve involvement income of $274 cardinal and nett income of $43 million." The institution presently has $400 cardinal successful unrestricted cash.

While the stakeholders didn't straight authorities the crushed down the deal's fallout, the ongoing crypto wintertime has led to a spiral of downward revisions for galore companies' valuations. On apical of that, SPAC mergers person besides performed poorly, with the IPOX SPAC scale benchmark falling implicit 40% since reaching all-time highs successful February 2021. Likewise, Israeli cryptocurrency speech eToro terminated its $10 cardinal SPAC merger this July aft a downward revision to its valuation.