Have you ever wondered why a company with over $1.4 billion in revenue in just six months ended up keeping a mere 7% in profit?
Circle’s newly released figures look frustrating: of its $1.4 billion in revenue, 59% went to revenue-sharing with Coinbase and other channels, while 34% was spent on compliance and blockchain integration. But in exchange for thin margins, it has achieved $36 trillion in on-chain settlement volume and built formidable compliance barriers.
With its acquisition of Tazapay and the launch of free, near-instant redemptions 24/7, Circle’s ambition is clearly not to profit from the spread on deposits—it’s to become the ultimate infrastructure layer for global cross-border payments.
$CRCL is currently consolidating around $83, with a market cap of roughly $22 billion.
Under pressure in the short term
Fed rate cuts will directly squeeze interest income from reserves, and the stock could pull back in the short term as rate expectations shift.
Scale matters in the medium term
Channel fees are high, but once network effects kick in, the marginal cost of the payments network is extremely low. Integrating Tazapay will accelerate its capture of market share from traditional cross-border clearing.
A premium in the long term
When institutional capital pours in, it will only trust the most compliant channels. The compliance moat built through heavy upfront investment is the stock’s strongest support.
As long as USDC continues to gain market share, the current pullback looks more like a chance for long-term investors to buy in at a discount.
If you were in my shoes, would you position yourself in $CRCL before the Fed cuts rates, or are you more bullish on higher-yield decentralized stablecoins?
circle
coinbase $COIN
DYOR
Circle’s newly released figures look frustrating: of its $1.4 billion in revenue, 59% went to revenue-sharing with Coinbase and other channels, while 34% was spent on compliance and blockchain integration. But in exchange for thin margins, it has achieved $36 trillion in on-chain settlement volume and built formidable compliance barriers.
With its acquisition of Tazapay and the launch of free, near-instant redemptions 24/7, Circle’s ambition is clearly not to profit from the spread on deposits—it’s to become the ultimate infrastructure layer for global cross-border payments.
$CRCL is currently consolidating around $83, with a market cap of roughly $22 billion.
Under pressure in the short term
Fed rate cuts will directly squeeze interest income from reserves, and the stock could pull back in the short term as rate expectations shift.
Scale matters in the medium term
Channel fees are high, but once network effects kick in, the marginal cost of the payments network is extremely low. Integrating Tazapay will accelerate its capture of market share from traditional cross-border clearing.
A premium in the long term
When institutional capital pours in, it will only trust the most compliant channels. The compliance moat built through heavy upfront investment is the stock’s strongest support.
As long as USDC continues to gain market share, the current pullback looks more like a chance for long-term investors to buy in at a discount.
If you were in my shoes, would you position yourself in $CRCL before the Fed cuts rates, or are you more bullish on higher-yield decentralized stablecoins?
circle
coinbase $COIN
DYOR