Circle was valued at $4.5 billion in its first deal with Concord Acquisition Corp. in July 2021.
Earlier this month, Circle said that it would go public in a deal worth $9 billion, which is twice as much as it agreed to in July.
The company signed a new deal with Concord Acquisition Corp., which is a special purpose acquisition company (SPAC). Circle said in a statement Thursday that the new deal reflects the company’s better financial outlook and competitive position.
The figure shows that the company’s value has doubled since July, when the first deal valued it at $4.5 billion.
This is how it works: The holding company set up in the original deal will buy both Concord and Circle to form a new publicly traded company called “CRCL.” This new firm will be called Concord.
The previous agreement was scrapped because the two parties didn’t think it would be possible to finish it by the April 3 date. The new agreement has a start date of December 8, which means that either party can walk away if it isn’t done by then.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.