It was supposed to be one of the very first companies related to the cryptocurrency world to debut on the stock exchange. The announcement was made in July 2021, with the company – issuer of the stablecoin USDC – which would go public, within a few months, through a SPAC. And instead, after many postponements, Circle, a fintech founded in 2013 and based in Boston, has decided to close this possibility. At least for now.
The official note arrived today (Monday 5 December): Circle and its partner, Concord Acquisition, spoke of a “mutual resolution”. The CEOs of both companies have released complementary statements, suggesting the decision to end the deal was amicable.
The moves of the Sec
Circle CEO Jeremy Allaire said he was “disappointed that the transaction has lapsed,” a reference to the fact that the Securities and Exchange Commission has not yet granted the necessary approval for Circle to complete the Concord connection.
The SEC’s inaction on Circle’s IPO deal coincides with the tenure of Chairman Gary Gensler, who is somewhat of an outspoken enemy of the cryptocurrency industry. But it also comes at a time when regulators around the world are scrutinizing the industry in light of the FTX scandal.
The words of the CEO
In his note, Allaire also reiterated that “becoming a public company remains part of Circle’s core strategy to improve trust and transparency,” but did not provide further details on how or when Circle might go public, or at what cost. In any case, some financial data on the company emerged from the same note, such as the net profit of 43 million euros in the third quarter.