Circle, the stablecoin issuer behind USDC has cancelled its plans to go public.
The stablecoin creator announced plans of going to go public back in July 2021.
The cancellation was announced on Monday via Circle's website and Twitter.
Circle scraps going public plan
Circle CEO Jeremy Allaire announced that Circle did not complete the requirements for a company to go public in time. The conditions are set by the U.S. Securities and Exchange Commission (SEC).
From Jeremy Allaire:
From my perspective, I believe that the SEC has been rigorous and thorough in understanding our business and many novel aspects of this industry. This kind of review is necessary to ultimately provide trust, transparency and accountability for major companies in crypto.
We also today shared our high-level Q3 financial results, with $274M in revenue, $43M in Net Income, and ~$400M on our balance. We are strong, growing, profitable and in the best financial position we've ever been in.
Unlike other crypto companies, it seems revenue and reserves are not a problem for Circle.
Public cancellations
In July 2022 cryptocurrency trading platform eToro also backed out of going public. The company planned to go public with a merger with FinTech Acquisition Corp. V, a special purpose acquisition company (SPAC).
Soon after agreeing to merge, both companies agreed to terminate their merger agreement. Merging with a SPAC is a common route that companies can take to go public.
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