Feb 18, 2022 - Economy

Stablecoin issuer Circle doubles valuation in new merger deal

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Illustration: Annelise Capossela/Axios

You don't see this every day: A SPAC buyer just revised a deal with its target company, doubling the latter's valuation.

Driving the news: Stablecoin issuer Circle inked a new merger agreement with Concord Acquisition Corp., the SPAC it agreed to combine with last July. The new deal values Circle at $9 billion — compared to $4.5 billion under the original terms.

Why it matters: The fact that Circle was able to get better terms reflects just how quickly the market for stablecoins has been growing.

  • Circle says the circulation of its main stablecoin, USDC, has grown to $52.5 billion — more than double what it was when the original deal was announced.
  • Of note: The deal termination date, April 3, was fast approaching and the merger wasn't on course to close by then, the company said. The new terms mean a fresh clock starts ticking.

What we're watching: The surging growth of stablecoins. The tokens are used as stores of value on crypto trading platforms and are supposed to be redeemable in dollars.

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