What Will The Next Generation of the Investing Landscape Look Like?
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Reuters
9 minutes ago
- Reuters
Stablecoin issuer Circle tops revenue estimate in first quarterly result since IPO
Aug 12 (Reuters) - Stablecoin giant Circle (CRCL.N), opens new tab surpassed expectations for second-quarter revenue in its maiden quarterly results since going public, sending its shares up 5% on Tuesday. Higher circulation of its USDC stablecoin and stronger subscription services helped the New York-based company cement a rally that has pushed its stock to more than five times its initial public offering price. Stablecoins, which are digital tokens backed by low-risk assets such as the U.S. dollar or Treasuries, have drawn increasing investor attention, especially since the Genius Act was passed last month. The momentum has helped companies such as Circle, which issues USDC - the second-biggest stablecoin by market value after Tether. After "our IPO and the Genius Act, we're seeing an acceleration of interest, with major institutions all leaning in," Chief Financial Officer Jeremy Fox-Geen said in an interview. USDC in circulation grew 90% as of June 30, compared to a year earlier. Circle expects it to grow at a compounded annual rate of 40% through the years. The token was also being used for cross-border transactions, including remittances both between individuals and businesses, CEO Jeremy Allaire said. The company's revenue and reserve income grew 53% year-over-year to $658 million, thanks to a jump in the interest it earns from the cash and short-term investments backing its USDC stablecoins. Revenue from subscription and services also rose, Circle said. Analysts were expecting revenues of $644.7 million, according to estimates compiled by LSEG. The company's net loss was $482 million, primarily due to two non-cash charges related to its IPO, including costs for employee stock awards that vested when the company went public and a higher valuation of its convertible debt following a rise in its share price. Circle on Tuesday also said it will roll out Arc, a public blockchain designed specifically for stablecoin transactions, this fall as it pushes to build the technological infrastructure for digital payments. "They're really trying to become the pillar of stablecoins in the U.S.," said David Bartosiak, stock strategist at Zacks Investment Research. "Circle can use what they have already done to establish themselves as a trusted mover." However, the company was currently not looking to strike many deals, even as the massive jump in its stock price has given it the ability to do so, CEO Allaire said. "We're careful and deliberate. I don't think our strategy here is to go try and do big, complex acquisitions to throw additional business lines."
Reuters
10 minutes ago
- Reuters
Daimler, Volvo, other truckmakers sue California to block emissions rules
Aug 12 (Reuters) - Four major truckmakers, including Daimler ( opens new tab and Volvo, sued California to block the state from enforcing strict emissions standards that U.S. President Donald Trump declared void in June. Daimler, Volvo, Paccar (PCAR.O), opens new tab, and International Motors ( opens new tab, formerly Navistar, said they have been "caught in the crossfire" after Trump reversed waivers issued during the Biden administration that let California set its own standards. In a complaint filed on Monday, the truckmakers said Trump's rescinding U.S. Environmental Protection Agency approval of California's plan to boost zero-emission heavy-duty truck sales and reduce nitrogen oxide emissions preempted the state's enforcement. They said this included enforcing the Clean Truck Partnership, a 2023 program giving the truckmaking industry flexibility to meet emissions requirements while advancing California's goal of lowering emissions. The truckmakers said the regulatory uncertainty has caused irreparable harm because they cannot plan production in advance without knowing which vehicles they will be permitted to sell. Monday's complaint names the California Air Resources Board and Democratic Governor Gavin Newsom as defendants, and was filed in the federal court in Sacramento, the state's capital. Newsom's office and the board did not immediately respond on Tuesday to requests for comment. Trump's action was part of the Republicans' effort to curb California's power under the federal Clean Air Act to set tighter pollution limits than federal law requires, and Newsom's desire to promote electric vehicles as he fights climate change. California has received more than 100 waivers under the Clean Air Act since 1970. During his June signing of joint congressional resolutions, Trump also blocked California's effort to end sales of gasoline-only vehicles by 2035. The state is also suing to undo Trump's actions. The case is Daimler Truck North America LLC et al v. California Air Resources Board et al, U.S. District Court, Eastern District of California, No. 25-02255.
Reuters
10 minutes ago
- Reuters
Do Kwon to plead guilty to US conspiracy, fraud charges in $40 billion crypto collapse
NEW YORK, Aug 12 (Reuters) - Do Kwon, the South Korean cryptocurrency entrepreneur behind two digital currencies that lost an estimated $40 billion in 2022, is planning to plead guilty on Tuesday to two charges of conspiracy to defraud and wire fraud, a judge said at a U.S. court hearing. U.S. District Judge Paul Engelmayer is expected to ask Kwon, who co-founded Singapore-based Terraform Labs and developed the TerraUSD and Luna currencies, a series of questions before formally asking him to enter the plea. Kwon, 33, had pleaded not guilty in January to a nine-count indictment charging him with securities fraud, wire fraud, commodities fraud and money laundering conspiracy. He was accused of misleading investors in 2021 about TerraUSD, a so-called stablecoin designed to maintain a value of $1. Kwon allegedly told investors a computer algorithm known as "Terra Protocol" had restored the coin's value when it slipped below its peg in May 2021, when in fact he arranged for a high-frequency trading firm to secretly buy millions of dollars of the token to artificially prop up its price. Prosecutors with the Manhattan U.S. Attorney's office said that false claim and others drove retail and institutional investors to buy Terraform products and boost the value of Luna, a more traditional token developed by Kwon that fluctuated in value but was closely linked to TerraUSD, to $50 billion by the spring of 2022. Kwon had agreed in 2024 to pay an $80 million civil fine and be banned from crypto transactions as part of a $4.55 billion settlement that he and Terraform reached with the U.S. Securities and Exchange Commission. Kwon has been detained since his extradition from Montenegro late last year. He is one of several cryptocurrency moguls to face federal charges after a slump in digital token prices in 2022 prompted the collapse of a number of companies.
