【Circle beats expectations, yet lays off staff】
Circle reported its third-quarter results today, with adjusted earnings per share of $0.84, far above the market expectation of just $0.37. But there are only 3 things you need to know about this report:
① Some of the profit was one-off: Of the $207 million in other income, $182 million came from the ARC token presale.
② The core business is shrinking: Core reserve revenue fell 8% to $658 million, as reserve yields declined by 61 basis points. Every time the Fed cuts rates, the Treasuries backing USDC earn a little less.
③ The company is also cutting costs: A footnote in the report disclosed layoffs of about 5% of staff.
At 21:27, Binance bStocks had CRCLB at 73.73 USDT. It had touched a 24-hour high of 78, but had already given back most of its gains.
My take: This is a report that “beats expectations on the surface, but looks weak under the hood.” After the U.S. market opens at 22:30, I’m leaning toward a spike followed by a pullback. I could be wrong if it holds above 78 after the open, which would suggest the market is placing more weight on the 49% year-over-year growth in USDC on-chain transaction volume.
Do stablecoin companies still deserve high valuations during a rate-cutting cycle?
Sources: Decrypt, Investing.com, Binance data
#Circle #USStockEarnings
📈 Top 3 contract gainers (21:38): $CLANKER +29.66%｜$CAP +23.10%｜$AIO +21.51%
#BinanceSquare
⚠️ The above is a compilation of information and personal opinions, and does not constitute investment advice. DYOR.
Circle reported its third-quarter results today, with adjusted earnings per share of $0.84, far above the market expectation of just $0.37. But there are only 3 things you need to know about this report:
① Some of the profit was one-off: Of the $207 million in other income, $182 million came from the ARC token presale.
② The core business is shrinking: Core reserve revenue fell 8% to $658 million, as reserve yields declined by 61 basis points. Every time the Fed cuts rates, the Treasuries backing USDC earn a little less.
③ The company is also cutting costs: A footnote in the report disclosed layoffs of about 5% of staff.
At 21:27, Binance bStocks had CRCLB at 73.73 USDT. It had touched a 24-hour high of 78, but had already given back most of its gains.
My take: This is a report that “beats expectations on the surface, but looks weak under the hood.” After the U.S. market opens at 22:30, I’m leaning toward a spike followed by a pullback. I could be wrong if it holds above 78 after the open, which would suggest the market is placing more weight on the 49% year-over-year growth in USDC on-chain transaction volume.
Do stablecoin companies still deserve high valuations during a rate-cutting cycle?
Sources: Decrypt, Investing.com, Binance data
#Circle #USStockEarnings
📈 Top 3 contract gainers (21:38): $CLANKER +29.66%｜$CAP +23.10%｜$AIO +21.51%
#BinanceSquare
⚠️ The above is a compilation of information and personal opinions, and does not constitute investment advice. DYOR.
