The Circle’s upper management is dissatisfied with the timing of the deal’s collapse.
Circle planned to list on the Nasdaq as a special purpose acquisition company (SPAC).
On Monday, Circle Internet Financial, the firm behind the stablecoin USDC, made the formal announcement that it was dissolving its special purpose acquisition company (SPAC) with Concord Acquisition. The original proposal for the corporate merger was made public in July 2021.
The firms’ boards of directors, both at Circle and Concord, reportedly gave their consent to the decision to end operations. According to them, the sale fell through because the SEC has not yet approved the company’s registration statement.
Plan of Getting Listed on Nasdaq
The Circle’s upper management is dissatisfied with the timing of the deal’s collapse. However, Jeremy Allaire, Circle’s co-founder, and CEO, has said that going public would continue to be the company’s primary goal. Before announcing the January 2023 postponement, Circle announced the delay in November 2022. The closing of the deal was expected to occur in December 2022.
The current news, from Circle, that they would be canceling its SPAC plans, is just the latest in a long line of crypto-related concerns that have been linked to the U.S. SEC. The stablecoin issuer expressed confidence that it will meet all regulatory requirements and become a publicly traded corporation. Circle planned to list on the Nasdaq as a special purpose acquisition company (SPAC). With a $4.5 billion valuation in July of 2021.
This occurs while USDC’s market cap has been declining. The USDC market lost over 20% of its value in the previous three months due to the crypto collapse of 2022. According to cryptocurrency market data provider CoinMarketCap, the overall market cap for USDC is $43.27 billion.