Binance Invests $100M in Circle Amid Expanded USDC Partnership

Crypto exchange Binance has made significant investments in Circle's CRCL shares, purchasing up to $100 million through a private placement. The deal comes as part of an expanded partnership between the two companies to promote USDC, a stablecoin issued by Circle.

The agreement was made on September 17, and under it, Binance bought 1,237,011 CRCL shares at a purchase price of $80.84 per share, generating aggregate proceeds of $100 million for Circle. The shares were sold in a private placement exempt from the Securities Act.

Binance cannot sell or transfer these shares until two years have passed or until the commercial arrangements between the companies are terminated under certain circumstances. Additionally, the exchange is restricted from entering into any hedging, swap, or derivative arrangements with respect to the subscribed CRCL shares.