Circle, a financial services business based in the United States that is responsible for the stablecoin USDC, has decided against pursuing a public listing in the near future and instead states that it will continue to concentrate on establishing “a long-term public company.”
Since the beginning of this year, Circle’s primary focus has been on the strategy to go public. The business was planning to accomplish this goal with the assistance of Concord Acquisition Corp., a so-called special purpose acquisition company that is listed publicly (SPAC).
The SPAC had until December 10 of this year to finalize a business combination with Circle in accordance with the provisions of Concord’s charter of organization. The boards of directors of both Concord and Circle have decided to abandon the plan to form a new corporate entity by merging their respective companies.
In a press statement issued on Monday, Circle CEO and co-founder Jeremy Allaire said, “We are unhappy the planned transaction timed out.” However, becoming a public business remains part of Circle’s fundamental aim to promote trust and transparency, which has never been more vital.
Initially, the two companies intended to establish a holding company together, which would then go on to be publicly listed, essentially opening up a fast-track to a listing for Circle. However, those plans were scrapped.
On Monday, Allaire launched a thread on Twitter in which users shared their thoughts regarding the company’s decision to shift its business strategy.
Right now, Circle is in what might be called its “best financial position” ever.
While this was going on, the CEO of Circle was commenting in the same thread about the financial success of his company during the third quarter. He said that despite the fact that there are “a lot of issues” in the cryptocurrency sector right now, Circle is still in a solid position.
Allaire wrote in the thread that the company is “strong, growing, profitable, and in the best financial position we’ve ever been in,” while pointing to a third-quarter revenue of $274 million, $43 million in net income, and a $400 million balance sheet. “We are in the best financial position we’ve ever been in,” Allaire said.
In conclusion, Allaire said that he believes the cryptocurrency sector as a whole is presently in the process of transitioning to a new phase that will be defined more by usefulness and less by the speculative value of cryptocurrencies.
“[…] I am of the very clear view that we are going to definitively exit the speculative value period and enter the utility value phase,” Allaire said in his article. “Stablecoins like USDC will play a big role in this transition.”
Compiled by Coinbold