Circle’s $9 Billion SPAC Deal Postponed Once Again; Merger to Take Effect in January 2023

Circle’s $9 Billion SPAC Deal Postponed Once Again; Merger to Take Effect in January 2023

The Circle-Concord Merger has been delayed the second time due to procedural issues.

New SEC Filing Reveals Another Delay in the Anticipated $9 Billion Merger

Circle has announced another delay of its $9 billion merger with the special purpose acquisition company (SPAC) Concord Acquisition Corp. According to the filing with the US Securities and Exchange Commission (SEC), the deal will be delayed until the end of January 2023.

Circle’s merger deal with the SPAC Concord Acquisition Group has been delayed again until the end of January, according to a filing with the SEC. This is the second time the deal has been postponed, after Circle renegotiated and delayed its original agreement with Concord in February, valuing the payments technology company at $9 billion.

Circle’s Value Increases in a Bearish Crypto Market

Before the February negotiation that increased the company’s value to $9 billion, the company was previously valued at $4.5 billion. Circle was initially set to go public in 2021 via a $4.5 billion IPO.

The increase in value shows improvements in Circle’s financial outlook and competitive position, particularly the growth and market share of USDC, one of the fastest-growing dollar digital currencies. USDC’s circulation has more than doubled since the original deal was announced, reaching $52.5 billion as of February 16, 2022.

The recent filing by Circle indicated that the deal is getting delayed again because Concord’s board needs more time to host a special shareholder meeting to approve the merger.

The move marks the second time the SPAC deal, set to take Circle public, got delayed in 2022. For the first time, the deal was pushed back by 6 months. However, the proposed delay is now seven weeks, indicating that the hurdles preventing the deal from concluding on time are likely more procedural than core market issues like the ongoing bear market.

Circle Is Making a Mark in the Global Financial Industry

Circle is a global financial technology firm that enables businesses of all sizes to harness the power of digital currencies and public blockchains for payments, commerce and financial applications worldwide. Circle is the issuer of USD Coin (USDC), one of the fastest-growing dollar digital currencies powering always-on internet-native commerce and payments.  

While Circle is a P2P payment technology company, it is primarily known as the issuer of USDC, the second-largest stablecoin in the world, with more than $43 billion in circulating supply. Earlier this year, USDC overtook stablecoin leader USDT on Ethereum, though Tether’s token remains the no.1 stablecoin. 

Stablecoins are digital currencies designed to be less volatile than cryptocurrencies by pegging their market value to an outside asset like the U.S. dollar. That makes them potential bridge currencies between volatile crypto assets and more stable, traditional assets.

Circle’s stablecoin, USDC, has increased in reach and popularity over the past year. For example, Mastercard said it was piloting a program that would utilize USDC to enable cryptocurrency payments between cardholders and merchants in last summer.

About Concord Acquisition

Concord Acquisition Corp is a special purpose acquisition company formed to enter into a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses in the financial services or financial technology industries. Concord raised $276 million in its initial public offering in December 2020 and is listed on the NYSE under the symbol “CND”.