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Stock impact report

Stablecoin Issuer Circle Faces ‘an Uphill Battle.' Is It Time to Give Up on CRCL Stock? [Yahoo! Finance]

Circle Internet Group, Inc. Class A (CRCL) 
Company Research Source: Yahoo! Finance
attention shifting from the strong performance in the third quarter to potential challenges to profitability in the coming period because of low bond yields. Having benefited from another spate of increased usage of USDC, revenue more than doubled from a year earlier, but notwithstanding this, market watchers focused intently on the fall in Circle's reserve return rate, which is an important profitability driver that is pegged to U.S. Treasury yields. The environment is tougher for interest-rate-sensitive fintech plays, and stablecoin issuers find themselves in the middle of this transition. As hopes of further decreases in interest rates intensify in international markets, interest-income-dependent companies find themselves repriced in the market. CRCL's recent earnings figures make this conflict clear, as CRCL's stock is now close to $85, which is a far cry from previous highs, at a time when even the crypto market faces macro-related challenges in international markets. More Ne Show less Read more
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