Summary
- Circle has invested approximately $100 million in the acquisition of Hashnote, which is expected to impact the final transaction value in the IPO.
- The acquisition of Hashnote is seen as a strategic expansion for Circle, with a provision included to potentially issue additional shares to some employees.
- Circle has applied for an IPO on the New York Stock Exchange, with major financial firms participating as joint underwriters.
It has been confirmed through IPO documents that Circle, the issuer of the dollar-based stablecoin USD Coin (USDC), has invested approximately $100 million in acquiring Hashnote, the issuer of the tokenized money market fund USYC.
According to The Block, a cryptocurrency-focused media outlet, on the 27th (local time), Circle acquired 100% of Hashnote's shares for about $99.8 million in January, of which $9.9 million was paid in cash and the remainder in 2.9 million shares of Circle's common stock.
The media stated, "The acquisition of Hashnote is expected to significantly impact the final transaction value in the IPO," adding, "Circle included a provision in the documents to potentially issue an additional 1.8 million shares of Circle's common stock to some Hashnote employees."
It further added, "This will be accounted for as compensation costs depending on whether conditions are met."
Meanwhile, Circle has applied for an IPO on the New York Stock Exchange (NYSE). JP Morgan, Citigroup, and Goldman Sachs are participating as joint underwriters.
JH Kim
reporter1@bloomingbit.ioHi, I'm a Bloomingbit reporter, bringing you the latest cryptocurrency news.
