The Nasdaq rose 0.8% on Monday, but not a single crypto stock kept up. Circle fell the hardest, closing at 79.84, down 7.1% on the day.
It started with a Mizuho report. They asked AI assistants where people should put their cash, and the AIs steered them toward places with deposit insurance and higher interest—not USDC. Mizuho maintained its “Underperform” rating and lowered its price target from 45 to 43. It estimates that USDC’s circulating supply could shrink by $4 billion to $9 billion over the medium term, cutting Circle’s reserve interest income by 10% to 20%.
The price target only moved down by $2, but the stock dropped more than $6 in a day.
I think most of this was an excuse to sell. COIN closed at 159.60 that same day, its lowest closing price since August 18. MSTR fell 4.2%, and HOOD fell 2.3%. From Friday’s U.S. market close to Monday’s close, Bitcoin ground down from 81,282 to 80,020, a 1.6% drop. Crypto stocks were getting hit across the board; Mizuho just gave Circle an extra shove.
Still, 95% of Circle’s second-quarter revenue came from interest on USDC reserves. The company only makes money when cash sits idle in USDC—that vulnerability wasn’t made up by Mizuho. COIN reports earnings on the 29th, and Circle reports on the evening of November 4, Beijing time.
Its lowest closing price this month was 79.55 on the 14th. Today’s close was less than 30 cents above that.
$CRCLB $COINB
#美股 #EarningsSeason
It started with a Mizuho report. They asked AI assistants where people should put their cash, and the AIs steered them toward places with deposit insurance and higher interest—not USDC. Mizuho maintained its “Underperform” rating and lowered its price target from 45 to 43. It estimates that USDC’s circulating supply could shrink by $4 billion to $9 billion over the medium term, cutting Circle’s reserve interest income by 10% to 20%.
The price target only moved down by $2, but the stock dropped more than $6 in a day.
I think most of this was an excuse to sell. COIN closed at 159.60 that same day, its lowest closing price since August 18. MSTR fell 4.2%, and HOOD fell 2.3%. From Friday’s U.S. market close to Monday’s close, Bitcoin ground down from 81,282 to 80,020, a 1.6% drop. Crypto stocks were getting hit across the board; Mizuho just gave Circle an extra shove.
Still, 95% of Circle’s second-quarter revenue came from interest on USDC reserves. The company only makes money when cash sits idle in USDC—that vulnerability wasn’t made up by Mizuho. COIN reports earnings on the 29th, and Circle reports on the evening of November 4, Beijing time.
Its lowest closing price this month was 79.55 on the 14th. Today’s close was less than 30 cents above that.
$CRCLB $COINB
#美股 #EarningsSeason