Binance Buys $100 Million of Circle Shares, Extends USDC Partnership by Five Years
Summary
- Binance said it bought a $100 million stake in Circle and agreed to expand the companies' USDC partnership for five years.
- Binance said it invested $100 million by purchasing 1,237,011 Circle Class A common shares in a private placement at $80.84 apiece.
- Circle said it will pay Binance monthly incentives tied to the amount of USDC held through its modular smart contract wallet service, while Binance plans to conduct promotional activities related to USDC.
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Binance has bought $100 million worth of shares in Circle, the issuer of the USDC stablecoin, and agreed to expand the companies' USDC partnership for five years.
CoinDesk reported on Sept. 22 that Binance bought 1,237,011 shares of Circle Class A common stock in a private placement on Sept. 17 at $80.84 a share. The total investment was $100 million.
The shares are generally subject to limits on sale, transfer and hedging for up to two years, though Binance retains voting rights.
The companies also expanded their existing USDC partnership as part of the equity deal. Circle will pay Binance monthly incentives tied to the amount of USDC held through its modular smart contract wallet service, while Binance will conduct USDC-related promotional activities on its platform.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.