Circle temporarily abandons its IPO plans

Financial technology and payments infrastructure company Circle has abandoned a deal with Concord Acquisition Corp to prepare for an initial public offering five days before its closing. But its ambition to go public remains intact. The manager of the market’s second-largest stablecoin also reported strong financial results for the company.

Circle exits its SPAC agreement

Breaking off its planned merger with Concord Acquisition Corp, an Special purpose acquisition company (SPAC), with which it had to form a combined entity in order to list, Circle will not be joining Coinbase immediatelya co-issuer of USDC, in the ranks of listed companies. The acquisition agreement that was signed in July 2021, and later reworked in February 2022, which had seen Circle valued at $9 billion.Will not see the light of day after all.

Concord has been a strong partner and added value throughout this process, and we will continue to benefit from the guidance and support of Bob Diamond and the entire Concord team. We are disappointed that the proposed transaction has expired, however, becoming a public company is part of Circle’s core strategy to build trust and transparency, which has never been more important.

Jeremy Allaire, Circle’s chief executive officer, at. Press Release.

Circle in good condition

To justify this decision, Jeremy Allaire explains in. a tweet that the two entities did not have enough time to file all the documents required by the US regulator (SEC), given that the listings are now subject to very strict regulations. Knowing also, perhaps, that the current times are not necessarily the most favorable for an IPO through a SPAC.. For example, broker eToro and mining company PrimeBlock have previously disrupted the same type of process, which has become a common way for companies to go public.

Anyway, Circle backs its ambition to go publicbut without further details. On the other hand, the USDC administrator took the opportunity to communicate about. the company’s good results just released..

We also shared today our strong third quarter financial results, with $274 million in revenue, $43 million in net income and approximately $400 million on our balance sheet. We are strong, we are growing, we are profitable and we are in the best financial position in our history.

Jeremy Allaire, Circle’s chief executive officer, at. Twitter

At the time of FTX’s bankruptcy, Circle was quick to take to Twitter to explain the company’s relationship with FTX and Alameda. Jeremy Allaire said that the exposure was very relative and that there was no risk of contagion.