Hassan Maishera
TL;DR
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Binance purchased $100 million of Circle shares in a private placement that closed September 17.
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The companies signed a five-year agreement under which Binance will promote USDC and Circle will pay the exchange a monthly incentive fee.
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Binance faces restrictions on selling, transferring or hedging the shares, though it retains voting rights.
Binance has bought a $100 million stake in Circle as the two companies expand their partnership to promote USDC on the crypto exchange.
Circle issued Binance 1.24 million Class A shares at $80.84 each in a private placement that closed September 17, according to an SEC filing. Circle said the price was below its market value before the sale.
Five-year deal ties payments to USDC holdings
The share purchase closed alongside a new commercial agreement. Binance will carry out promotional activities for USDC, while Circle will pay the exchange a monthly incentive fee calculated as a percentage of USDC held through Circle’s Modular Smart Contract Wallet service.
The five-year arrangement replaces agreements the companies signed in November 2024 and August 2025. Either party may end the new deal early if specified events occur; the financial terms tied to termination were not disclosed.
Binance’s shares carry resale restrictions
Binance cannot sell, transfer or hedge the shares until two years have passed or Binance terminates the commercial arrangements under certain circumstances, subject to customary exceptions. It can still vote the shares.
The stock was issued in an unregistered private placement. Binance’s ability to resell it is therefore limited unless the shares are registered or an exemption applies.
