Former Barclays boss Bob Diamond to take crypto firm Circle public in Spac deal
Former Barclays boss Bob Diamond is set to take cryptocurrency firm Circle public through a $4.5bn (£3.3bn) blank-cheque listing.
The complex Spac deal will see Circle merge with Concord Acquisition Corp, which is backed by Diamond, before the combined entity is acquired by a new Irish holding company that will trade on the New York Stock Exchange.
The merger is expected to raise $691m for the new company, Circle said.
Institutional investors Marshall Wace, Fidelity, Daniel Loebb’s Third Point and accounts advised by ARK Investment Management have agreed to offer $415m in so-called PIPE (private investment in public equity) financing, the startup added.
The announcement comes after Morning Wire revealed London-based hedge fund Marshall Wace was planning a long term crossover strategy to make late-stage venture capital investments in digital finance companies.
Boston-based Circle describes itself as the principal operator of USD coin, a digital currency whose value is begged to the US dollar.
The stock market float comes as crypto firms are facing increased regulatory scrutiny amid concerns over the asset’s volatility.
Earlier this year a federal court in Massachusetts authorised the Internal Revenue Service to serve summons to Circle, seeking information about US taxpayers who conducted transactions of at least $20,000 in cryptocurrency during 2016 to 2020. Circle has not been accused of any wrongdoing.
The deal is the latest in a flurry of Spac deals as companies increasingly turn to blank-cheque mergers to list on the stock market.