Binance Buys 1.24 Million Shares of Circle (CRCL)..."Long-term Conviction, Not a Short-term Deal"

▲ Circle (CRCL)/AI Generated Image

Global virtual asset exchange Binance has made a $100 million equity investment in Circle Internet Group (CRCL), the issuer of the stablecoin USDC. The two companies will extend their strategic partnership by five years and officially embark on expanding the regulated stablecoin ecosystem in global markets.

CNBC, a U.S. economic news broadcaster, reported on September 22 (local time), citing Circle's disclosure filed with the U.S. Securities and Exchange Commission (SEC), that Binance acquired 1,237,011 shares of Circle Class A common stock through a private placement. The purchase price per share was $80.84, a discount from the market price just before the transaction, bringing the total investment to $100 million. As a result of this equity acquisition, Binance has been granted a lock-up condition (mandatory holding) that restricts the sale, transfer, or pledging of shares for up to two years, while retaining its voting rights.

The two companies have signed a five-year long-term commercial agreement, significantly expanding their existing cooperation. Binance plans to extensively promote USDC across its global platforms, particularly focusing on expanding access to dollar liquidity in emerging markets. Circle has agreed to pay Binance a monthly incentive fee proportional to the amount of USDC held in the exchange's modular smart contract wallet infrastructure.

This large-scale investment reflects a long-term conviction in the institutional dominance of regulated stablecoins. Binance CEO Richard Teng stated, "This $100 million investment and five-year partnership commitment demonstrate long-term conviction," explaining that it is "a decision to build a more transparent and regulatory-compliant digital economy." Jeremy Allaire, co-founder and CEO of Circle, also emphasized that through cooperation with Binance, they would accelerate the distribution of digital dollars to global markets, including financially underserved populations.

CRCL, Circle's NYSE-listed stock, showed an increase of over 1.3% in pre-market trading. USDC's market capitalization has reached approximately $75 billion, and Circle's valuation is estimated at around $24 billion, with its stock price having risen by 19% since the beginning of the year.

[Article Key Summary]

-Binance acquired a total of $100 million worth of shares in Circle (CRCL), the issuer of the stablecoin USDC, at $80.84 per share.

-The two companies have entered into a 5-year partnership, agreeing to USDC promotions within global platforms and monthly incentive payments based on wallet holdings.

-Richard Teng, CEO of Binance, stated that the investment was decided based on long-term conviction in a regulatory-compliant digital financial system.

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