Binance has invested $100 million in Circle to expand their cooperation in the stablecoin sector, with the investment completed through the purchase of shares.

Circle issued and sold 1,237,011 Class A common shares to Binance at a price of $80.84 per share, generating total proceeds of $100 million. This means Binance completed the investment by subscribing to newly issued shares from Circle rather than buying existing shares on the secondary market.

The two parties also reached a new five-year cooperation agreement, where Circle agrees to pay Binance monthly rewards based on the proportion of USDC held through wallet infrastructure services. This means that the larger the amount of USDC held and distributed by Binance, the greater the monthly rewards it can receive from Circle.

As part of the agreement, Binance will conduct a series of promotional activities for USDC on its trading platform, working with Circle to expand the usage and holding scale of USDC among Binance's user base. The cooperation between the two has extended from mere capital injection to a deep binding at the operational business level.

After the announcement, Circle's listed stock code CRCL rose in pre-market trading, with an increase of up to 1.76%, indicating a positive market reaction to the investment and cooperation agreement.

From the perspective of funding and profit distribution mechanisms, Binance's $100 million investment not only secures equity in Circle but also includes a long-term monthly revenue sharing arrangement based on the scale of USDC holdings. This means that while becoming a shareholder of Circle, Binance also gains a continuous income source directly linked to the circulation scale of USDC. On the other hand, Circle can consolidate USDC's competitive position against other stablecoin issuers (such as Tether) by bringing in funds and distribution channels from Binance, the world's largest trading platform. The arrangement presents a mutually beneficial relationship between the capital injection party and the distribution channel party, while Circle's other shareholders benefit from the short-term rise in stock prices.

Source: Public Information