Ripple's Blockbuster Proposal to Acquire Circle Rejected
Ripple Proposes $5 Billion Acquisition of Circle - Latest Developments Unveiled
San Francisco's Ripple, a big-league blockchain firm, has allegedly proposed a colossal $4-5 billion buyout to Circle, the USDC issuer. This juicy tidbit comes straight from Bloomberg's latest report, released on a bustling Wednesday. However, a less-than-enthusiastic Circle has declined the offer, seeing it as an undervaluation of their company.
This move comes shortly after Circle's decision to file for an initial public offering (IPO) in the US sometime in early April.
With Ripple still showing interest but undecided about another offer, Circle continues to forge ahead with its IPO plans, maintaining a deafening silence regarding rumors swirling in the market.
Recently, Ripple President Monica Long shared some insight, stating that Ripple had no intentions of going public. Instead, the company appears to be in an "acquisitive" phase. Just last month, Ripple dropped a whopping $1.25 billion on Hidden Road, a prime brokerage firm - one of the largest crypto acquisitions to date.
Circle is no stranger to hefty acquisitions. Back in 2018, the company splurged $400 million on the Poloniex exchange. Despite the fancy purchase, Circle incurred a monumental loss of $156 billion with this deal. As reported by us here at U.Today, Poloniex break free from Circle's grasp in late 2019 in the midst of their restructuring.
Currently, Circle's USDC stablecoin holds a market cap of $62 billion, making it the second-largest stablecoin (just shy of Tether's USDT) and the seventh-biggest cryptocurrency overall. Ripple made its own foray into the thriving stablecoin sector with the introduction of Ripple USD (RLUSD), whose market cap recently breached $300 million.
References:
- Ripple Offered to Acquire Circle for $5 Billion
- Crypto Exchange Poloniex is Spinning Out of Circle
- Bloomberg: Ripple Proposed $4-5 Billion Buyout of Circle
- Ripple Buys Hidden Road for $1.25 Billion in a Major Crypto Deal
- Monica Long: Ripple is in an "Acquisitive" Position
- Although Ripple proposed a buyout worth $4-5 billion to Circle, the USDC issuer declined the offer, reportedly viewing it as an undervaluation of their company.
- The rejection by Circle comes after the company announced its plans for an initial public offering (IPO) in the US, scheduled for early April.
- Despite Ripple's interest in acquiring Circle possibly continuing, the company is pressing forward with its IPO plans, not making any public comments about potential purchase offers.
- Monica Long, Ripple's President, revealed that Ripple has no intentions of going public and is instead in an "acquisitive" phase, as shown by its recent $1.25 billion acquisition of Hidden Road.
- In a significant move within the crypto sphere, Circle's USDC stablecoin currently holds a market cap of $62 billion, making it the second-largest stablecoin, just shy of Tether's USDT, and the seventh-biggest cryptocurrency overall.
- Ripple recently introduced its own stablecoin, Ripple USD (RLUSD), whose market cap has recently surpassed $300 million, indicating growth in the thriving stablecoin sector.
