According to Bloomberg, Ripple has released a takeover bid on Circle, the company behind Stablecoin USDC. The proposed deal would be between $ 4 billion and $ 5 billion, but was rejected by Circle as ‘too low’.
Takeover proposal refused
Ripple, known for the XRP Crypto currency and his recent launch of the RLUSD-Stablecoin, would have tried Circle Internet Group Inc. to take over. The bid amounted to an amount between $ 4 billion and $ 5 billion. Sources that are familiar with the business report to Bloomberg that Circle found the bid too low and therefore rejected.
Although Ripple is still interested in a takeover of Circle, no decision has been made about a possible new offer.
Circle focuses on IPO
Circle is currently more focused on his own growth path. The company submitted documents this month for an IPO (IPO), with which the public wants to collect capital to finance further growth. That strategy would also be the reason why the Ripple-Bid was rejected: Circle may aim for a higher rating via the stock exchange.
A spokesperson for Circle refused substantive comments and referred to the current ‘Quiet Period’ around the IPO. Ripple, in turn, has not given no explanation.
Stablecoinstrijd: RLUSD vs USDC
Ripple launched his own Stablecoin Rlusd in December. It currently has an estimated market capitalization of $ 316.9 million. That is still sharp against the dominant position of Circle’s USDC, which represents a market value of no less than $ 61.7 billion. Ripple would immediately give Ripple a much larger position in the Stablecoin market.
Appearance in the crypto sector
Ripple’s attempt fits into a wider trend of mergers and acquisitions within the crypto sector. Now put on token values again, several large players such as Bitgo, Gemini and Bullish are preparing for exhibitions or strategic deals. Earlier this month, Ripple also bought the Prime brokerage company Hidden Road for $ 1.25 billion.
Source: https://newsbit.nl/ripple-probeerde-stablecoin-rivaal-circle-over-te-nemen-voor-5-miljard/
