Binance’s $100 Million Circle Investment: It Didn’t Stop at Buying Shares!

Binance purchased $100 million worth of shares in Circle, the issuer of USDC, while also signing a new five-year commercial agreement aimed at increasing the stablecoin’s use.

According to Wu Blockchain, citing Circle’s September 22 Form 8-K filing, Binance purchased 1,237,011 Class A shares of the company at $80.84 per share. The transaction, which the source said was conducted at a discounted price, was disclosed as having a total value of $100 million, and the purchase was completed.

Five-year USDC agreement alongside the share purchase

Circle’s affiliates and Binance signed a new agreement on September 17 to expand the use of USDC. The five-year contract replaces the parties’ previous agreements dated November 2024 and August 2025. The source states that the share purchase also took place on the same day.

Under the new arrangement, Circle will make monthly incentive payments to Binance. The payments will be calculated based on a certain percentage of the USDC balance held through Circle’s Modular Smart Contract Wallet infrastructure, a modular smart contract wallet. Binance, meanwhile, will carry out additional promotional activities for USDC on its platform.

Thus, the partnership is not limited to an equity investment; it also includes a commercial incentive mechanism supporting the use of USDC on Binance. The payment in question is directed to Binance; the source’s summary does not announce a cash reward program to be distributed directly to users.

Two-year transfer restriction on the shares

The Circle shares acquired by Binance are generally subject to a two-year transfer restriction. However, certain early termination provisions and exceptions apply.

The $100 million amount represents the cost of the company shares acquired. The monthly USDC incentives are a separate part of the agreement; the source’s summary does not include the rate or total amount of these payments.