Binance has acquired $100 million in Circle shares as part of an expanded five-year partnership designed to promote the USDC stablecoin on the exchange's platform.
Circle issued Binance 1.24 million Class A shares at $80.84 each in a private placement that closed on September 17, according to an SEC filing. The company said the price reflected a discount to Circle's market value at the time of the sale.
Under the terms of the equity purchase, Binance cannot sell, transfer, or hedge the shares until the earlier of two years or a termination of the commercial arrangement under certain circumstances. Binance retains voting rights on the shares.
The equity investment is accompanied by an expanded commercial partnership between the two companies. Circle will pay Binance monthly incentive fees calculated as a percentage of USDC held through Circle's Modular Smart Contract Wallet service. In return, Binance will conduct promotional activities for the stablecoin.
The new five-year arrangement replaces earlier USDC partnership agreements from November 2024 and August 2025. Either company may terminate the partnership early if specified events occur, though the specific termination triggers are not public.
The shares were sold in an unregistered private placement, which restricts Binance's ability to resell them unless they are registered or an applicable exemption is available. Circle's subsidiaries executed the related commercial agreements, with the share sale closing immediately after.
