stub Circle Halts Pending Acquisition with SPAC, Putting Plans to Go Public in Limbo -
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Circle Halts Pending Acquisition with SPAC, Putting Plans to Go Public in Limbo

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Circle Internet Financial, the issuer of stablecoins USD Coin (USDC) and Euro Coin (EUROC), has announced the termination of an acquisition deal. In July 2021, Circle announced its plans to go public via a publicly-traded, special purpose acquisition company (SPAC) Concord Acquisition Corp. The termination of the business combination deal is mutual; it has been approved by the Board of Directors of both Concord and Circle.

Jeremy Allaire, co-founder and CEO of Circle, also announced the termination of the SPAC transaction in a tweet. He said that the failure to complete SEC qualification in time is disappointing, but Circle remains focused on building a long-term public company.

Bob Diamond, Chairman of Concord Acquisition Corp. and former CEO of Barclays, speaking about the acquisition and its termination said: “I remain confident in Circle's regulatory-first approach to building trust and transparency in the financial industry, which has never been more important, and I will continue being an advocate for the company as it continues to grow.”

“Concord has been a strong partner and has added value throughout this process, and we will continue to benefit from the advice and support of Bob Diamond and the broader Concord team. 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,” said Jeremy Allaire in a Circle press release.

Circle is Profitable

In the press release announcing the termination of the Circle-Concord business combination, Circle also announced its return to profitability. Circle says it became profitable in the third quarter of 2022, with total revenue and reserve interest income of $274 million and net income of $43 million, ending the quarter with close to $400 million in unrestricted cash.

In one of its grand achievements this year, Circle received In-Principle Approval as a Major Payments Institution License holder from the Monetary Authority of Singapore (MAS), the country’s central bank, earlier this month. The license allows Circle to offer digital payment token products, cross-border and domestic transfer services in Singapore.

Mandela has been a cryptocurrency enthusiast since 2017. He loves coding and writing about emerging technologies. He has an in-depth understanding of distributed ledger technology and the Web3 technology stack. He enjoys researching new cryptocurrency projects.