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USDC issuer Circle completes $440 million financing! Insiders: Next step is to go public through a SPAC listing

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USDC issuer Circle completes $440 million financing! Insiders: Next step is to go public through a SPAC listing

The issuer behind USDC, Circle, announced today that it has completed a new round of $440 million in funding, valuing the company at $4 billion. It is reported that following this funding round, the company may go public through a Special Purpose Acquisition Company (SPAC).

$440 Million Funding

According to The Block, stablecoin issuer Circle has completed a new funding round of $440 million, a piece of news later confirmed by the company's CEO on Twitter.

Participants in this funding round include Fidelity, FTX, DCG, Marshall Wace, Valor Capital Group, Pillar VC, Intersection Fintech Ventures, Atlas Merchant Capital, and Willett Advisors, among others.

SPAC Listing Could Impact Share Performance

Citing sources familiar with the matter, The Block reported that the company may go public through a Special Purpose Acquisition Company (SPAC) after the funding, targeting a valuation of $4 billion. Companies that have gone public through SPACs have raised billions of dollars so far this year.

However, these types of stocks have recently faced significant selling pressure in the market. According to The Wall Street Journal, concerns over rising inflation forcing the Fed to end its loose monetary policy sooner than expected have dampened investor appetite for new and tech stocks. The Defiance Next Gen SPAC fund, which tracks stocks of companies that have gone public through SPACs and SPAC stocks that have not yet made any deals, has fallen by about 30% in the past three months, hitting a six-month low recently.

Top Funding Rounds

In previous funding rounds, Circle raised approximately $260 million in total, with DCG participating in almost every round of funding. After completing this funding round, Circle has become one of the companies in the cryptocurrency sector in 2021 to complete significant funding rounds. These companies include Paxos, which completed a $300 million Series D funding round in April, and BlockFi, which raised $350 million in March, both pushing their valuations over $1 billion. Additionally, FTX is also set to complete a new funding round, which would bring the company's valuation to $20 billion.