The USDC stablecoin issuer, Circle, has announced that it will no longer proceed with its earlier plans to go public following the firm’s failure to complete all the requirements by the US financial regulator. The firm has, through its spokesperson, debunked the news that its decision to drop the plan was due to the FTX contagion that has also affected the broader crypto market.
While commenting on the rumors that the collapse of the Sam Bankman-Fried FTX exchange was responsible for Circle’s failed plan, co-founder and CEO Jeremy Allaire noted this was not the case.
Allaire revealed that Circle still needs to complete the Securities and Exchange Commission (SEC) requirements. He added that the guidelines are critical for any company waiting for its public listing.
Even as attempts were made to tie the firm’s decision to the FTX debacle, the co-founder revealed that Circle generated returns during the third quarter of the year. The stablecoin issuer, according to its executives, has made $274 million in revenue and holds $400 million in fiat currency.
Thus, the CEO is confident in the healthy financial state of the firm by insisting that Circle is in “the best financial standing” more than ever before. The public listing was initially scheduled to be completed via a merger with Concord Acquisition Corp.
Also read:But it was not meant to be, as the SEC’s requirements became a stumbling block. Nevertheless, the firm’s spokesperson hinted at a possible initial public offering (IPO).
However, he added that Circle has yet to determine a definite timetable to complete the process. Meanwhile, the information officer disclosed that Circle would continue to work toward becoming a publicly-listed company as soon as possible.
Circle first announced its intention to go public in July 2021 after reaching a valuation of $4.5 million. In February 2022, the company’s updated market cap shows a whopping $9 billion valuation.
SPAC Deals And Their Endless Failures
Meanwhile, a Bloomberg report in August 2022 shows that the crypto industry has witnessed more than 40 special purpose acquisition company (SPAC) deals collapse. So, it is no surprise that the latest SPAC deal followed the same pattern.
It is worth noting that several merger and acquisition deals have gone down the drain before the latest Circle-Concord partnership. Many of these deals failed due to mutual decisions by the parties involved.
An example is the $1.25 billion deal involving 10X Capital Venture Acquisition Corp. and Prime Blockchain, a crypto mining firm. According to a statement from the two parties, the termination was mutual with no external influences.
Despite the setback, Circle’s USDC is still among the top-performing stablecoins in the crypto space.
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