USD Coin Creator Circle Going Public Via SPAC: What Investors Should Know

A leading digital currency company that created the USD Coin announced a SPAC merger Thursday morning.

The SPAC Deal: Circle announced a SPAC merger with Concord Acquisition Corp CND valuing the company at $4.5 billion.

A PIPE of $415 million is included as part of the SPAC merger and includes investments from Fidelity, Ark Invest and Third Point.

The company plans on trading on the NYSE with the ticker "CRCL" after the merger. Current CND shareholders will own 4.9% of the company after the merger. 

Existing investors have earnouts based on the share price hitting $12, $14, $16 and $100 over the next 12 months, 36 months, 60 months and 120 months respectively.

About Circle: The principal operator of USD Coin, Circle is one of the fastest-growing digital currency companies in the world. USD Coin is a fully reserved and regulated dollar digital currency.

There are more than $25 billion USD Coins in circulation that have been used for $785 billion in on-chain transactions.

USD Coins are built on Ethereum ETH/USD and are a representation of an existing dollar at a redeemable value of 1:1.

“Circle was founded with a mission to transform the global economic system through the power of digital currencies and the open internet,” CEO and co-founder Jeremy Allaire said.

The company is the first digital currency native commercial financial institution built on a public blockchain according to its presentation.

Related Link: How To Buy USD Coin

Growth Ahead: The USD Coin is one of the fastest-growing digital currencies, with the number in circulation increasing over 3,400% in 2021.

Partnership and uses for the USD Coin are helping the growth of the coin and also for Circle.

Partners mentioned in the presentation are Coinbase Global Inc COIN, Visa Inc V, FTX, Dapper and US Bancorp USB.

“Dapper uses Circle infrastructure and USDC settlement for global payments supporting NFT markets,” according to the presentation. Dapper is the owner of NBA Top Shot.

Circle sees cryptocurrency and blockchain doing for the global exchange of value, what the internet did for the global exchange of information.

“We are taking an even bigger step forward, with the capital and relationships needed to build a global-scale internet financial services company that can help businesses everywhere,” Allaire said.

Financials: Circle has 2,786 accounts in 2021 with an estimate to grow to more than 10,000 in fiscal 2022.

The company is estimating revenue of $115 million in fiscal 2021, $407 million in fiscal 2022 and $886 million in fiscal 2023.

Price Action: CND shares are up 6.37% to $10.52 Thursday.