Circle pulls out of merger deal with SPAC Concord Acquisition Corp

Cryptocurrency peer-to-peer payment technology firm Circle has announced the cancellation of its agreement to merge with SPAC Concord Acquisition Corp. Thus, they have lost the ability to comply with the requirements received from the Securities and Exchange Commission (SEC), which now prevents them from entering the market.

Recall that it was Circle that had a hand in creating the USDC stablecoin, which is in the top 5 cryptocurrencies in terms of market capitalization. At the time of writing, it exceeds $43,300,000,000.

The announcement of the news about the cancellation of the merger with SPAC Concord Acquisition Corp appeared on the Twitter account of Jeremy Allair, one of the founders of Circle and part-time CEO of the company. However, Allair has an optimistic view that is aimed at building a long-term public company.

The decision to terminate the contract and cancel the merger with SPAC Concord Acquisition Corp was mutual. Despite the cancellation of such a scenario, Circle were pleased to cooperate with Concord and called them a fairly strong partner. In addition, Circle may consult with Concord in the future in matters of which they are not very sure.

The news of Circle's merger with SPAC Concord Acquisition Corp broke in July 2021. Then Circle had a great opportunity to become a public company through such a contract. Circle's stock, ticker CRCL, was expected to be available for an initial listing on the New York Stock Exchange.

Circle was previously valued at $4,500,000,000. Later, in February 2022, the company's valuation was doubled and already exceeded the $9,000,000,000 mark. At the same moment, the future of Circle was determined, according to which the company would merge with SPAC Concord Acquisition.

Then it was assumed that the corresponding transaction would be closed before December 8, 2022, and under certain circumstances it would be possible to extend the period until January 31, 2023. Now the companies have decided to cancel the merger and go their separate ways.

In November, Circle reported that they were also affected by the collapse of the FTX cryptocurrency exchange. In November, following the bankruptcy of Sam Bankman-Fried's company, Circle spoke about the investment that had previously been made in FTX. Their amount exceeded $10,600,000.