Stablecoins
Binance Invests $100 Million in Circle to Expand USDC Partnership
Circle Internet Group has raised $100 million from Binance through a private placement of over 1.2 million Class A shares, as disclosed in a recent SEC filing. The shares were sold at $80.84 each on September 17, coinciding with an expanded commercial agreement between the two companies regarding USDC.
Under the new five-year agreement, Circle will pay Binance a monthly incentive fee based on the USDC held through Circle’s Modular Smart Contract Wallet. This arrangement replaces previous agreements made in late 2024 and mid-2025. Binance will also promote USDC on its platform as part of this collaboration.
As part of the investment, Binance has agreed to a two-year lockup on the shares, retaining voting rights throughout the restriction period. The private sale of shares allows Binance to avoid SEC registration requirements, but they are prohibited from selling or hedging the shares during the lockup period unless certain conditions are met.
Circle's stock performance has seen fluctuations, with shares recently closing at $94.49, reflecting a 2.95% increase. The company has a market value of approximately $25.8 billion and reported $701.3 million in revenue for the latest quarter.
FAQ
What is the amount invested by Binance in Circle?
Binance has invested $100 million in Circle through a private placement of over 1.2 million Class A shares.
What is the purpose of the investment?
The investment aims to expand the partnership between Binance and Circle regarding USDC, which includes a new five-year commercial agreement.
What are the terms of the new agreement between Circle and Binance?
Under the new agreement, Circle will pay Binance a monthly incentive fee based on the USDC held through Circle’s Modular Smart Contract Wallet, and Binance will promote USDC on its platform.
What restrictions are placed on Binance regarding the shares?
Binance has agreed to a two-year lockup on the shares, during which they cannot sell or hedge the shares unless certain conditions are met.
How has Circle's stock performed recently?
Circle's stock has seen fluctuations, recently closing at $94.49, which reflects a 2.95% increase, with a market value of approximately $25.8 billion.