Circle cancels plans to go public amid return to profitability

Circle, the company that issues the USD Coin (USDC) stablecoin, has terminated its plans to go public via a special purpose acquisition deal with Concord Acquisition Corp (NYSE:CND).

The stablecoin issuer said in an announcement on Monday that the Board of Directors of both Circle and Concord had approved the cancellation.

Circle ends proposed SPAC deal with Concord

Plans for a SPAC deal that would see Circle become a publicly traded company were announced in July 2021, with the deal valued at $4.5 billion. As Invezz reported in February this year, the two companies then amended the agreement, doubling the valuation to $9 billion.

Jeremy Allaire, the co-founder and CEO of Circle, said in a statement on Monday that the proposed deal ‘timed out”. However, the company still looks to go public as part of the broader goal of enhancing trust and transparency. The Circle chief noted:

 “Concord has been a strong partner and has added value throughout this process, and we will continue to benefit from the advice and support of Bob Diamond and the broader Concord team. We are disappointed the proposed transaction timed out, however, becoming a public company remains part of Circle’s core strategy to enhance trust and transparency, which has never been more important.”

Stablecoin issuer was profitable in Q3

Circle’s announcement comes at a time the company has returned to profitability, revealing success in key financial areas in its Q3 2022 report. The positive news for the US-based company also comes at time the broader crypto industry is navigating a brutal crypto winter and the fallout that’s followed the collapse of cryptocurrency exchange FTX.

Despite the challenges, Allaire says crypto is soon going to step from the “speculative value phase and enter the utility value phase.” Commenting further on this, the Circle exec tweeted:

5/ We are investing, building, growing, and working with a large and thriving ecosystem of companies and projects who are focused on bringing forward the vision of open, more inclusive and more efficient global financial system.

— Jeremy Allaire – jda.eth / jdallaire.sol (@jerallaire) December 5, 2022

As per the company’s financial results, Q3 revenue was $274 million and net income stood at $43 million. Circle also had nearly $400 million in unrestricted cash on its balance sheet.