Circle Shares Near $91 as Deal Mechanics Come Under Scrutiny
Circle Internet Group (CRCL) shares traded near $91 in premarket trading on Thursday, down 3.03% from Wednesday's close at $91.72.
The company's recent deals with Binance and Tazapay highlight the share-issuance mechanics used in these transactions. Circle issued Binance 1,237,011 Class A shares for a $100 million investment on September 17 at a fixed price of $80.84 per share.
The deal with Tazapay is different because its final share count has not yet been set. The agreement uses a floating share-count structure, where the initial closing share issuance will be based on an Estimated Purchase Price and CRCL's volume-weighted average closing price over the 20 trading days immediately before closing.
The acquisition of Tazapay is expected to close in 2027, subject to regulatory approvals and other closing conditions. The company has stated that the combination would expand its ability to originate and terminate cross-border payments and increase USDC distribution.