Image Credit: Binance.com
- Binance invested $100 million in Circle Internet Group through a private placement while expanding their commercial partnership around USDC for five years.
- Circle issued 1,237,011 Class A shares to Binance at $80.84 per share in a transaction that closed on Sept. 17.
- The SEC filing does not disclose the percentage rate used to calculate Binance's monthly incentive fee under the new arrangement.
Binance has invested $100 million in Circle Internet Group as the companies expanded their commercial partnership around USDC for another five years. The crypto exchange bought Circle Class A shares through a private placement while agreeing to promote USDC across parts of its platform, with a particular focus on emerging markets. Circle will also pay Binance monthly incentive fees tied to USDC balances held through its Modular Smart Contract Wallet infrastructure.
Binance Buys 1.24 Million Circle Shares
Circle issued 1,237,011 Class A shares to Binance at $80.84 per share, generating aggregate proceeds of $100 million. The transaction closed on Sept. 17. Binance said the purchase price represented a 5% discount to Circle’s market price before closing. The shares were sold through an unregistered private placement.
The shares are subject to transfer and hedging restrictions until the earlier of the two-year anniversary of closing or a qualifying termination of the commercial agreement by Binance. The restrictions include specified exceptions, while Binance retains voting rights during the restricted period.
Circle Will Pay Monthly USDC Incentives
Under the separate commercial agreement, Circle will pay Binance a monthly incentive fee representing a percentage of the amount of USDC held through Circle’s Modular Smart Contract Wallet infrastructure service. Binance agreed to undertake additional activities promoting USDC on its platform.
The agreement runs for five years. Either company can terminate it early if certain specified events occur. The new arrangement replaces earlier agreements between the companies from November 2024 and August 2025.
Partnership Targets Wider USDC Distribution
Circle and Binance said the renewed partnership is intended to expand USDC access and usage, including in emerging markets. Binance co-CEO Richard Teng described the investment as a longer-term commitment to the relationship.
“Our $100 million investment and five-year commitment represent long-duration conviction.”
Equity Investment Deepens Existing Partnership
The agreement adds a direct equity relationship to a commercial partnership already centered on USDC distribution. Circle said the share sale closed substantially concurrently with the new commercial arrangements. The SEC filing does not disclose the percentage rate used to calculate Binance’s monthly incentive fee.
