Circle has agreed to fresh SPAC deal terms with Harmony Acquisition Corp.
Key Takeaways
- Circle has signed a fresh deal for a SPAC merger with Harmony Acquisition Corp.
- The fresh agreement offers Circle a $9 billion valuation, double its prior valuation from July 2021.
- The fresh agreement is predicted to be exercised in December 2022.
Circle, the issuer of USDC, has shared fresh particulars relating to its transition to turning true into a publicly trading firm. Its valuation is now $9 billion.
Circle’s Valuation Doubles Ahead of SPAC Merger
USDC issuer Circle has terminated final three hundred and sixty five days’s SPAC merger deal terms with Harmony Acquisition Corp. Ensuing from a reappraisal of the Circle’s valuation, a fresh agreement has been signed.
Per a Thursday press unlock, the fresh agreement offers Circle a $9 billion valuation, double the $4.5 valuation penned in its long-established July 2021 agreement with Harmony Acquisition.
Circle announced its plans to head public final summer by a merger with a assorted aim acquisition company (SPAC) known as Harmony Acquisition Corp by discontinuance of 2021. SPACs are shell firms that behavior initial public offerings to merge with deepest firms and scheme shut them public.
Since the fresh deal was announced final three hundred and sixty five days, USDC’s circulating provide has more than doubled, crossing $52.7 billion as of Feb. 17, 2022. The upward thrust in the USDC provide precipitated Circle to reassess its valuation, the announcement said.
The revised SPAC agreement accounts for Circle’s improved monetary outlook, and its rising allotment of the total stablecoin market. Per the fresh SPAC agreement, each Circle and Harmony Acquisition will seemingly be got by a single retaining company in December 2022, however it will perchance well be prolonged except Jan. 31, 2023. The corporate will then be listed on the New York Stock Trade under the inventory ticker symbol CRCL.
Whereas Circle’s valuation has doubled, Harmony Acquisition’s market capitalization has consolidated round $370 million since July 2021. This form that Harmony Acquisition’s shareholders will salvage round half of of the payout they’d comprise acquired if the fresh deal had gone by. CND shares are down -3.76% on the day.
On the opposite hand, Harmony Acquisition’s administration personnel has expressed particular sentiment relating to the deal. Commenting on the diagram in the clicking unlock, Bob Diamond, Chairman of Harmony Acquisition Corp, said:
“We accept as true with our fresh deal is beautiful because it preserves the skill of Harmony’s public stakeholders to scheme shut part in a transaction with this extensive company.”
USDC is the arena’s second-superb stablecoin by market capitalization, trailing handiest Tether (USDT).
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