By Charlie Conchie
Bob Diamond’s acquisition vehicle has scrapped a deal to take cryptocurrency firm Circle public today, as the sector is rocked by the collapse of crypto exchange FTX and a slump in prices.
Circle, which issues the USD Coin that is pegged to the value of the dollar, had struck a deal for the initial merger to go public via Concord Acquisition Corp in July 2021.
However, the two firms said they had agreed “mutual termination” of the deal today.
“Concord has been a strong partner and has added value throughout this process, and we will continue to benefit from the advice and support of Bob Diamond and the broader Concord team,” said Jeremy Allaire, Co-Founder and CEO of Circle.
“We are disappointed the proposed transaction timed out, however, becoming a public company remains part of Circle’s core strategy to enhance trust and transparency, which has never been more important.”
Diamond, the former chief of Barclays, said he remained confident in Circle’s “regulatory-first approach to building trust and transparency in the financial industry”.
The abandonment of the deal underscores the evaporation of confidence in the market as it is shaken by a so-called crypto winter and the fallout of FTX’s collapse.
Crypto firms on the public markets have been hit by sell-offs amid the downturn, with Coinbase trading down 86 per cent since its November peak last year.
Bitcoin has similarly shed more than 70 per cent of its value since its November peak last year.
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