USD Coin (USDC) operator Circle has seen its valuation double to $ 9 billion after the company revised its merger agreement with Concord Acquisition Corp, a special purpose acquisition company (SPAC) founded in 2020.
Round announced On Thursday, it terminated its previous trading terms with Concord and reached a new agreement, which is expected to be finalized by December 8, 2022, with the possibility that it will be extended until January 31, 2023. As reported by Cointelegraph , Circle and Concord first announced their merger plans in July 2022.
A Circle spokesman told Cointelegraph that the new agreement reflects a commitment by both parties to advance the deal once it becomes clear that the original closing date will not be met. They explained:
“It is clear that the original agreement will not be closed within the timeframe of the original trade agreement (April 3, 2022). As part of the negotiations to extend the agreement, the value of Circle has been updated to reflect improved financial USDC’s performance and competitive position, along with a new starting external date, December 8, 2022.
Consistent with the original agreement, Circle remains committed to becoming a publicly traded company once the business merger is finalized and a new company is appointed. This new company will acquire both Circle and Concord and will become a publicly traded business to be listed on the New York Stock Exchange under the ticker symbol “CRCL”.
“[A]Although we continue to work diligently to complete this transaction, the timing will ultimately depend on many factors beyond our control, including the SEC’s review of our S-4 registration statement, “the spokesman said.
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50 BILLION USDC (with thread below) pic.twitter.com/5FEaPmXjup
– Jeremy Allaire (@jerallaire) February 1, 2022
Rondo has carved out a strong reputation in the cryptocurrency industry for its emphasis on regulatory compliance and for demonstrating the full support of its USDC reserves. Earlier this month, Circle minted its $ 50 billion coin, second only to Tether’s USDT in terms of stable market capitalization. With a current value of $ 52.6 billion, USDC is responsible for more than 29% of the stability market, according to CoinMarketCap.
The stock market is collectively worth $ 180.1 billion, up from $ 10 billion by mid-2020.