usdc circle spac 9b theblock

Circle согласовала новые условия сделки по обратному слиянию со SPAC Concord Acquisition Corp. Эмитента стейблкоина USD Coin (USDC) оценили в $9 млрд, что вдвое превышает объявленную ранее сумму.

Circle’s enterprise value has doubled — from $4.5 to $9B — since July 2021. Today we announced new transaction terms with our business combination partner, Concord Acquisition Corp. https://t.co/G4kbNlnnBV

— Circle (@circlepay) February 17, 2022

В июле Circle объявила, что станет публичной компанией через обратное слияние с Concord Acquisition Corp. Сообщалось, что ее акции попадут в листинг Нью-Йоркской фондовой биржи под тикером CRCL. Стоимость фирмы до слияния оценили в $4,5 млрд.

Двукратный рост оценки в компании объяснили улучшением финансовых перспектив и конкурентной позиции.

Of the$30 billionthat was invested into crypto startups last year, local unicornCirclereceivedthe largest crypto investmenttotalling $440 million. One month later, the startup announced plans to go public in a$4.5 billion SPAC deal.

Things, however, have changed for the explosively growing digital currency startup.

On Thursday, Circle announced that it has reevaluated its previous SPAC deal with Concord Acquisition Corp., a publicly traded blank-check company. When completed, the merger will make Circle a public company and increase the startup’s valuation from $4.5 billion to $9 billion.

“Being a public company will further strengthen trust and confidence in Circle and is a critical milestone as we continue our mission to build a more inclusive financial ecosystem.

One positive item for Terra was the increased demand for its popular dollar-pegged UST stablecoin, as LUNA holders capture value as UST demand grows. This is because Terra’s native LUNA token is used as part of the stabilization mechanism for UST, as discussed in more depth here.
More specifically, Terra allows anyone to mint one UST by burning $1.00 worth of LUNA (or conversely, minting $1.00 worth of LUNA by burning one UST). As such, the greater the demand for UST, the more LUNA is burned.
And UST demand was strong during the month, with the stablecoin’s market cap increasing by over $1.6b or ~15%. This helped LUNA’s circulating supply fall by ~24m during the month, per smartstake.io.

Circle has filed an S-4 form with the Securities and Exchange Commission (SEC), which has yet to be declared effective by the regulator. The commission has ramped up its scrutiny of SPAC combinations in recent times, as the use of blank-check companies has grown more popular.

The new agreement allows Circle to raise $750 million in capital through private placements, based on a valuation of $7.65 million.

However, the new deal also eliminates $415 million in private investment in public equity from companies like Fidelity Management and ARK Investment.

The new agreement has been approved by the board of directors for both Concord and Circle.

“Circle has made massive strides toward transforming the global economic system through the power of digital currencies and the open internet,” Circle CEO Jeremy Allaire said in the press release.

Source: Sansheets, GSR

War in Ukraine

From a macro perspective, investors initially focused their attention during the beginning of the month on the rising inflation around the world and pondered whether it would lead to expedited central bank policy tightening. The US CPI, for example, rose in January at its fastest pace since the early 80s, causing the 10-year treasury to break 2% for the first time since 2019.


Later in the month, however, attention was focused solely on Russia-Ukraine tensions, which all started when Russia began increasing troops near the Ukraine border mid-month. With many fearing an attack could be imminent, Russian President Putin decided not to meet with US President Biden for peace talks and then recognized the independence of separatist-held parts of Eastern Ukraine before invading the country.

Circle has filed an S-4 form with the Securities and Exchange Commission (SEC), which has yet to be declared effective by the regulator. The commission has ramped up its scrutiny of SPAC combinations in recent times, as the use of blank-check companies has grown more popular.

The new agreement allows Circle to raise $750 million in capital through private placements, based on a valuation of $7.65 million.

However, the new deal also eliminates $415 million in private investment in public equity from companies like Fidelity Management and ARK Investment.

The new agreement has been approved by the board of directors for both Concord and Circle.

“Circle has made massive strides toward transforming the global economic system through the power of digital currencies and the open internet,” Circle CEO Jeremy Allaire said in the press release.

SPAC) Far Peak Acquisition by backed by Farley, the former NYSE president.

The crypto firm back by billionaire entrepreneur Peter Thiel’s Thiel Capital and Founders Fund, British hedge fund manager Alan Howard, U.S. hedge fund manager Louis Bacon, Hong Kong billionaire Richard Li, German investor Christian Angermayer’s Apeiron Investment Group, Galaxy Digital, and Japanese bank Nomura.

Brendan Blumer, Block.one’s chief executive officer and the incoming chairman of Bullish, said

“Bullish’s entry into the public markets allows our customers to take part in Bullish by holding a piece of our company, without any of the regulatory uncertainties or jurisdictional limitations of a profit-sharing token issuance,”

The merger would finalize by the end of 2021 post regulatory approvals and Far Peak stockholder’s approval.

The crypto firm is expected to launch its own regulated exchange by the end of this year and it would offer “deep, predictable liquidity with technology that enables retail and institutional investors to generate a yield from their digital assets,”

Crypto Companies Continue to Grow in Demand

2021 has proven to the year of crypto companies as the first two quarters of 2021 saw $2 billion in investment in crypto firms. A number of crypto companies have raised over $100 million seeing their valuation grown into billions.

Several crypto companies went public through the SPAC merger, only yesterday USDC stablecoin issuer Circle announced their SPAC merger as well at a $4.5 billion valuation.

Crypto adoption especially among Wall Street giants has continued despite a cold market.

It launched an over-the-counter trading desk for big cryptocurrency investors.

It acquired Poloniex, one of the largest cryptocurrency exchanges in the U.S. at the time. It also launched Circle Invest, a really simple mobile app that let you buy and sell a handful of crypto assets.

But Circle’s most promising product has been its stablecoin — USD Coin, or USDC for short.

As the name suggests, 1 USDC is always worth 1 USD. Unlike traditional cryptocurrencies, you can be sure that the value of USDC isn’t going to fluctuate like crazy. Auditing firms regularly check that issuers always keep as many USD in bank accounts as USDC in circulation.

With USDC, moving money from one wallet to another becomes as easy as using standard API calls.

The company has then added various infrastructure products around USDC, such as Circle Accounts.

But the company later pivoted to create a social payments app. Circle became a sort of Venmo clone with some blockchain technology under the hood.

At some point, Circle even removed the ability to send and receive bitcoins.

“We never thought of ourselves as a bitcoin startup. The media certainly classified us that way because we were involved with the technology.

From the day we founded the company three years ago we’ve focused on trying to build a new consumer finance company. And one that makes money work the way the internet works,” Circle co-founder and CEO Jeremy Allaire told TechCrunch’s Natasha Lomas in 2016.

While that consumer play didn’t take off, it’s interesting to see that Allaire was already thinking about being able to programmatically move money.

In 2017 and 2018, the company pivoted once again to focus on cryptocurrencies.

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