The Strategist

Cryptocurrency company Circle goes public with $4.5B valuation

07/09/2021 - 03:40

Cryptocurrency payment service Circle has announced that it will go public via a merger with SPAC company Concord Acquisition.

The fintech start-up will be listed on the NYSE with a market value of $4.5 billion when the deal closes. The parties intend to close the deal in the fourth quarter of this year.

Circle will be the second major cryptocurrency company to go public in the last couple of months. In April, cryptocurrency exchange Coinbase listed its shares on NASDAQ. Coinbase, like Circle, refused a direct IPO, opting for a direct listing. On the first day of trading, the exchange's shares surged 52% and its market capitalisation then reached nearly $100 billion.

Notably, both companies are involved in the issuance of the USDC stablecoin, which is pegged to the US dollar. At the moment, its float is around $28bn, but Circle expects this segment of the cryptocurrency market to grow very quickly, with USDC turnover rising to $190bn over the next couple of years, a seven-fold increase.