Cryptocurrency operator Circle Internet Financial says its valuation has doubled to $9 billion U.S. ahead of its planned market debut via a special purpose acquisition company (SPAC).
Circle said the higher valuation was due to its financial outlook and market share improving, especially in USD Coin (USDC), a stablecoin cryptocurrency whose value is pegged to the U.S. dollar.
Circle is the principal operator of USDC, which has a $52.4 billion U.S. market capitalization according to crypto data provider CoinGecko.
Stablecoins have soared in popularity as they offer more price stability compared with other cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) that have seen wild price swings in the past few months.
SPACs are shell companies that raise money in an initial public offering (IPO) and then merge with a private company and take it public via a reverse merger.
Circle’s SPAC deal is expected to be completed by the end of this year, but can be extended to January 31, 2023, according to the company.
Shares of Concord Acquisition Corp. (CND), the SPAC that is taking Circle public, were down nearly 4% at $10.10 a share at the close of trading yesterday (February 17).
