⚖️ STABLECOIN GROWTH DOES NOT AUTOMATICALLY GUARANTEE ISSUER MARGINS
Circle’s shares have reportedly fallen more than 75% from their previous peak.
Mizuho subsequently lowered its price target for $CRCL to $50 and assigned an Underperform rating.
The firm cited several concerns:
🔹 Growing competition among stablecoin issuers
🔹 Pressure on distribution economics
🔹 Dependence on reserve-generated revenue
🔹 Potential changes to revenue-sharing arrangements
🔹 A 2027 adjusted EBITDA estimate of approximately $699 million, around 25% below consensus at the time
The analysis highlights an important distinction.
$USDC transaction volume can grow while Circle’s retained economics face pressure from distributors, interest-rate changes and competing stablecoin infrastructure.
⚠️ Analyst projections are uncertain and may be revised. Informational only, not investment advice.
@circle
#Circle #USDC #Stablecoins #CRCL
Circle’s shares have reportedly fallen more than 75% from their previous peak.
Mizuho subsequently lowered its price target for $CRCL to $50 and assigned an Underperform rating.
The firm cited several concerns:
🔹 Growing competition among stablecoin issuers
🔹 Pressure on distribution economics
🔹 Dependence on reserve-generated revenue
🔹 Potential changes to revenue-sharing arrangements
🔹 A 2027 adjusted EBITDA estimate of approximately $699 million, around 25% below consensus at the time
The analysis highlights an important distinction.
$USDC transaction volume can grow while Circle’s retained economics face pressure from distributors, interest-rate changes and competing stablecoin infrastructure.
⚠️ Analyst projections are uncertain and may be revised. Informational only, not investment advice.
@circle
#Circle #USDC #Stablecoins #CRCL