Veteran hedge fund manager Cathie Wood’s ARK Invest is buying up shares of a special-purpose acquisitions company (SPAC) that is merging with a prominent stablecoin firm.
According to a report from MarketWatch, Wood’s ARK Fintech Innovation exchange-traded fund (ETF) spent $705,820 on 69,300 shares of Concord Acquisition Corporation (CND), a SPAC that recently announced it would be merging with stablecoin firm Circle.
The merger between CND and Circle, which will take place during the summer of 2022, puts a value on the newly formed public company at $4.5 billion.
Circle was co-founded in 2013 by chief executive officer Jeremy Allaire as a peer-to-peer payments company and crypto exchange platform. It became the main operator and issuer of stablecoin USD Coin (USDC) in 2018.
USDC is an Ethereum-based crypto asset pegged to the US dollar and the sixth-ranked cryptocurrency by market cap. It is the second-most popular stablecoin behind Tether (USDT). According to Circle, there are 44.6 billion USDC in circulation as of January 2022.
In a new interview with CNBC’s Squawk Box, Allaire says,
“We just see an incredible opportunity to grow rapidly and grow around the world, and we think that this set of transactions and becoming a public company really sets us up to be a trusted platform in this digital currency industry.”