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Circle, the issuer of the USDC stablecoin, announced that it has terminated its merger with a special purpose acquisition company (SPAC) Concord Acquisition to go public.
Circle announced the deal in June 2021 at a pre-money valuation of $4.5 billion. It was then increased to $9 billion in February 2022 and the contract was renegotiated.
Under the terms of the Concord Acquisition contracthad until December 10 to complete the deal or get shareholders to vote for its extension. However, Concord Acquisition chose to wait until the contract expired.
Circle CEO Jeremy Allaire(Jeremy Allaire), despite the termination of the deal, said that the issuer will continue to strive to strengthen “trust and transparency, which are very important in these difficult times.”
Although the parties did not indicate the reason for canceling the deal,The prolonged crypto winter has led to sharp revisions in the valuations of many companies. In addition, SPAC mergers have performed poorly, with the IPOX SPAC Index down more than 40% since hitting an all-time high in February 2021.
In August, uncertainty in the cryptocurrency sector, high inflation and rising interest rates led to the termination of the merger agreement between Prime Blockchain and SPAC 10X Capital Venture.
