🚨 Circle’s earnings: Profitable, yet quietly laying off 5%!
📊 Q3 figures (Circle earnings):
• Revenue + reserve income: $865 million, up 17% year over year
• Net income: $226 million, up 5%
• USDC on-chain transaction volume: $13.9 trillion, up 49%
• But reserve income fell 8% to $658 million (yield down 61 bp to 3.5%)
⚠️ Hidden details:
• A $182 million private placement of ARC tokens helped prop up these “better-than-expected” results
• About 5% of staff were laid off; $9.1 million in restructuring costs were tucked away in the earnings footnotes
• USDC in circulation at quarter-end: $73.9 billion; market share fell to 27%
👉 My take: Stablecoin “usage is surging, but balances aren’t growing.” The interest-income business model is under pressure in a rate-cutting cycle, and Circle is shifting toward the Arc blockchain and payment network. USDC’s turnover rate is about 10 times USDT’s—that’s the real moat.
The current Fear & Greed Index is 34 (Fear); the market remains cautious.
What do you think will be the next source of profit for stablecoin issuers? Let’s discuss in the comments 👇
$BTC $ETH
#Circle #USDC #Stablecoin
Personal opinion only; not investment advice
📊 Q3 figures (Circle earnings):
• Revenue + reserve income: $865 million, up 17% year over year
• Net income: $226 million, up 5%
• USDC on-chain transaction volume: $13.9 trillion, up 49%
• But reserve income fell 8% to $658 million (yield down 61 bp to 3.5%)
⚠️ Hidden details:
• A $182 million private placement of ARC tokens helped prop up these “better-than-expected” results
• About 5% of staff were laid off; $9.1 million in restructuring costs were tucked away in the earnings footnotes
• USDC in circulation at quarter-end: $73.9 billion; market share fell to 27%
👉 My take: Stablecoin “usage is surging, but balances aren’t growing.” The interest-income business model is under pressure in a rate-cutting cycle, and Circle is shifting toward the Arc blockchain and payment network. USDC’s turnover rate is about 10 times USDT’s—that’s the real moat.
The current Fear & Greed Index is 34 (Fear); the market remains cautious.
What do you think will be the next source of profit for stablecoin issuers? Let’s discuss in the comments 👇
$BTC $ETH
#Circle #USDC #Stablecoin
Personal opinion only; not investment advice
