Losses in Irish unit of crypto firm Circle

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U.S. cryptocurrency firm Circle has recorded losses of more than $ 21 million (€ 18.5 million) through its Irish unit as it prepares for its IPO.

The Goldman Sachs-backed company reported 2020 revenue of $ 16.9 million with losses of $ 21.9 million in its Irish entity, according to company documents.

He blamed his losses on his “historic reliance on commerce and the crypto markets in general.” Circle, which initially provided payments and cryptocurrency trading services, has shifted much of its focus over the past year of crypto trading.

It is now heavily focused on developing its cryptocurrency USD Coin (USDC), a so-called stablecoin whose value is pegged to a reserve of US dollars, with a suite of services built around it.

According to the company, more than $ 40 billion in stablecoins are now in circulation.

As part of this pivot, the company has sold some of its divisions over the past two years. This involved the sale of Poloniex, its cryptocurrency exchange. A number of employees in Dublin had worked on Poloniex in the past. Last year, she sold her Circle Invest investment product to digital asset broker Voyager.

“The only change between Circle’s focus on trading and USDC is the addition of revenue team members in Ireland. All other departments were there before the shift in focus to USDC, ”a Circle spokesperson said.

It employs 18 people in Ireland and has recently moved to a remote model first with hires in Galway, Cork and Belfast as well as Dublin.

“We have successfully transitioned to a remote enterprise approach first and as a result have increased our ability to attract and recruit talent located in many geographies where we would not traditionally have sought or advertised.” , said the spokesperson.

Circle plans to go public on the New York Stock Exchange through a merger with a previously publicly traded blank check company or Special Purpose Acquisition Company (SPAC). The listing is expected to value Circle at $ 4.5 billion.

“Following the de-SPAC process, we do not foresee any operational changes envisaged in Ireland,” said the spokesperson.

Circle raised $ 440 million in a fundraiser from several investors, including Fidelity, earlier this year before confirming its intention to pursue a public listing in New York.

In October, Circle revealed that it was under investigation by the United States Securities and Exchange Commission, although the nature of the investigation was not disclosed.

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