Latest news with #CRCL
Yahoo
5 days ago
- Business
- Yahoo
The $2.5 billion STRC offering is the largest IPO all year: Strategy
In an X (formerly Twitter) post on Sunday, Strategy (MSTR) announced that the recent IPO of its Variable Rate Series A Perpetual Stretch Preferred Stock (STRC) has set the record as the largest IPO in 2025. In the image attached to the post, Strategy showed that STRC's $2.5 billion IPO, which was upsized by a factor of five, was $0.75 billion larger than the second largest IPO and over twice the size of the Circle (CRCL) IPO. Notably, Strategy's STRD IPO came in eighth on the ranking of IPOs in 2025. STRD raised $1 billion in early June. Shortly after the STRD IPO, Strategy announced a $4.2 billion ATM offering on STRD. Strategy aims to be the premier issuer of bitcoin-backed credit instruments, having launched four series of perpetual preferred shares in 2025. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
6 days ago
- Business
- Yahoo
Dear Circle Stock Fans, Mark Your Calendars for August 12
Circle Internet Group (CRCL) has quickly found itself in the spotlight. Since its public debut, the stock has been powered by investor speculation and structural shifts in regulation and infrastructure. At the heart of this rally lies the GENIUS Act, a legislative initiative that created a framework for stablecoins. However, the new regulatory landscape introduces constraints. The GENIUS Act requires that stablecoin reserves consist only of cash, demand deposits, or short-term Treasury securities. This restricts Circle's flexibility in managing yield and limits its capacity to navigate risk through asset diversification. More News from Barchart Find Winning Momentum Trades With This Moving Average Stock Screener Tariffs, Earnings and Other Can't Miss Items this Week This Blue-Chip Dividend Stock Is Stuck in the Tariff Crosshairs. Can Cost Cuts Save the Day? Tired of missing midday reversals? The FREE Barchart Brief newsletter keeps you in the know. Sign up now! At the same time, Circle shares a meaningful portion of its interest income with distribution partners, such as Coinbase Global (COIN). Management has already signaled that this share may grow, further pressuring margins. All eyes are now on Tuesday, Aug. 12, when Circle will release its fiscal 2025 second-quarter results. For investors, the date may determine whether Circle stock can seen a sustainable surge. About Circle Stock Based in New York, Circle operates as a global financial technology company that offers infrastructure for blockchain-based financial applications. It is best known for issuing USDC (USDCUST), a dollar-backed stablecoin, and EURC, its euro-denominated counterpart. The company's market capitalization stands at $37 billion, and its operations extend beyond issuing digital currencies. Circle offers a comprehensive range of services, including developer tools, integration services, and tokenized fund products. For the past month, shares of CRCL stock are down 13%. During the same period, the S&P 500 Index ($SPX) has posted a gain of 0.6%. Circle's valuation remains high. Circle trades at 169 times adjusted forward earnings and 19.8 times sales, placing it well above industry averages. These multiples reflect elevated expectations but also highlight how much optimism is already priced into the stock. A Closer Look at Circle's Q1 Earnings Circle delivered a strong financial performance in the first quarter of fiscal 2025, which ended March 31. Total revenue and reserve income from continuing operations reached $578.6 million, marking a 58.5% year-over-year (YOY) increase. Operating income from continuing operations rose nearly 78% over the same period, coming in at $92.9 million. The company also posted substantial gains in profitability metrics. Adjusted EBITDA increased 60.6% and reached $122.4 million. Net income rose 33% to $64.8 million. Unaudited pro forma earnings per common share came in at $0.29. Circle ended the quarter with $1.1 billion in cash and cash equivalents, providing the company with the liquidity to continue supporting strategic initiatives and operational needs. Looking ahead, the outlook turns challenging, though. Analysts expect the company's Q2 loss per share to widen 100% YOY to $1.29. For the full fiscal year, the loss is projected to widen by 100% to reach $0.58 per share. However, expectations shift in fiscal 2026, when EPS is forecast to rise 177% to $0.45. While the turnaround offers a future growth narrative, the near-term outlook remains pressured by external constraints. What Do Analysts Expect for Circle Stock? Analyst sentiment on CRCL stock remains split, and the current consensus 'Hold' rating reflects as much. Out of 14 covering analysts, five maintain a 'Strong Buy" rating, one issues a 'Moderate Buy,' four advise to 'Hold,' and four recommend a 'Strong Sell.' This range reflects both the promise and the pitfalls of CRCL's current trajectory. CRCL stock's average price target of $183.54 represents 9% potential upside from here. On the more bullish end, the Street-high target of $280 represents 66% potential upside from current levels. On the date of publication, Aanchal Sugandh did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. This article was originally published on Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-07-2025
- Business
- Yahoo
Circle Internet Drops 6% in a Month: Buy, Sell or Hold the Stock?
Circle Internet Group CRCL shares have dropped 5.7% in the past month, underperforming both the Zacks Financial-Miscellaneous Services industry and Zacks Finance sector, which have returned 5.2% and 1.4%, respectively. Circle offers USDC, which is redeemable on a one-for-one basis for US dollars. USDC, along with EURC, are digital currency tokens issued natively on blockchain networks and backed by reserves consisting of highly liquid, price-stable cash and cash equivalents. Both USDC and EURC are used for payments, settlements, and as a digital dollar store of value. Circle stablecoin network is used by more than 600 million users globally as of March 28, 2025. However, the company faces stiff competition from established companies including Coinbase COIN, PayPal PYPL and Fiserv FI. Coinbase has inked a deal with Shopify that will allow consumers to pay with USDC on Base (Coinbase Ethereum layer-2 network) through Shopify Payments, bringing onchain payments to millions of storefronts. Meanwhile, Fiserv's plan to roll out a new blockchain-based digital asset platform based on a U.S. dollar-pegged stablecoin called FIUSD has been a noteworthy shares have underperformed its closest peers, including Coinbase and PayPal, but outperformed Fiserv over the past month. While Coinbase shares jumped 10.7%, PayPal and Fiserv fell 5.1% and 17.5%, respectively. CRCL Stock's Performance Image Source: Zacks Investment Research Circle Benefits From Growing Stablecoin Usage Since its launch in 2018, USDC has been used for more than $25 trillion in onchain transactions as of March 28, 2025. According to CoinMarketCap, USDC is the second-largest stablecoin as measured by the amount of stablecoins in circulation, with a 24% share of the stablecoin market as of Dec. 31, regulatory environment, including the passage of the GENIUS Act on July 17, provides a legal background to stablecoins like USDC. This bodes well for Circle, which has minted more than $504.3 billion of USDC and redeemed more than $464.4 billion of USDC from Jan. 1, 2021, to Dec. 31, 2024. In 2024, Circle reported revenues of $1.7 billion, adjusted EBITDA of $285 million and net income of $156 million. The company had total liquidity of $1.045 billion as of Dec. 31, 2024. CRCL's Sales Estimate Image Source: Zacks Investment Research Circle serves its clients through Circle Mint, which is available only to institutions (exchanges, institutional traders, wallet providers, banks, and consumer apps companies). The service is expected to benefit from growing demand for stablecoins. Circle Mint supports international wires and domestic bank transfers in more than 185 countries. As of Dec. 31, 2024, there were 1,819 Circle Mint customers with liquidity services provide institutional minting, reserving, redemption, and foreign exchange services for Circle stablecoins. Moreover, Circle Wallets are gaining traction as more than 11,000 developers have engaged with the product, deploying almost 10 million wallets onchain. Circle Wallet is now used by Grab Networks, a leading superapp in Southeast Asia. USYC Infusion to Boost CRCL's Clientele The acquisition of Hashnote and its TMMF, USYC, which is a tokenized product, is noteworthy as Circle's plan to integrate USYC into the Circle stablecoin network. Unlike payment stablecoins that offer no yield, USYC offers yield to the token holders that isgenerated from its invested assets, consisting primarily of reverse repurchase agreements on U.S. government and government-backed securities and short-term U.S. Treasury securities. Circle's plan will enable eligible customers to move between the non-yield bearing Circle payment stablecoins and USYC at the settlement speed of the blockchain. Earnings Estimates Revision Shows Mix Trend for CRCL For second-quarter 2025, the Zacks Consensus Estimate for CRCL's earnings has increased by a penny to 29 cents per share over the past 30 days. Circle Internet Group, Inc. Price and Consensus Circle Internet Group, Inc. price-consensus-chart | Circle Internet Group, Inc. Quote For 2025, the Zacks Consensus Estimate for Circle's earnings has declined 11 cents to $1.10 per share over the past 30 days. Conclusion Although improving regulatory environment and growing demand for stablecoins are noteworthy, Circle shares are overvalued, as suggested by the Value Score of F, which is risky for currently has a Zacks Rank #3 (Hold), which implies that investors should wait for a better entry point to accumulate the stock. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Fiserv, Inc. (FI) : Free Stock Analysis Report PayPal Holdings, Inc. (PYPL) : Free Stock Analysis Report Coinbase Global, Inc. (COIN) : Free Stock Analysis Report Circle Internet Group, Inc. (CRCL) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-07-2025
- Business
- Yahoo
Coinbase Reaps Growing Rewards from Circle Ties and USDC Economics: JPMorgan
Coinbase's (COIN) partnership with Circle (CRCL) and exposure to Circle's USDC stablecoin is generating significant financial upside, both through equity appreciation and high-margin revenue streams, according to a new report from Wall Street bank JPMorgan. The total value of Circle-related economics to Coinbase shareholders is estimated at $55 to $60 billion, the bank said, suggesting the market may be underestimating the strategic importance of the USDC ecosystem. The crypto exchange holds 8.5 million shares in Circle, valued at $1.6 billion as of July 25. The larger story, however, lies in USDC-related income, according to the report. In the first quarter of this year alone, Coinbase earned roughly $300 million in distribution payments from Circle, more than Circle's total net revenue of $230 million. The bank estimated that Coinbase had $13 billion in USDC balances on-platform at the end of the first quarter, generating $125 million in revenue at 20–25% margins. Off-platform, Coinbase splits Circle Reserve Fund income 50/50, pulling in $170 million last quarter at nearly 100% margin, the report added. The bank has a neutral rating on Coinbase stock with a $404 price target. The shares were around $381 in early trading Tuesday.
Yahoo
26-07-2025
- Business
- Yahoo
Circle Internet Group (CRCL) Might Not Have Anything Proprietary, Says Jim Cramer
We recently published . Circle Internet Group (NYSE:CRCL) is one of the stocks Jim Cramer recently discussed. Circle Internet Group (NYSE:CRCL) is one of the hottest stocks of 2025. The shares have gained a whopping 129% since their IPO. Circle Internet Group (NYSE:CRCL) has benefited primarily from the enthusiasm surrounding the stablecoin market. Digital assets have soared in popularity, particularly among younger investors, as they grow worried about the strength of the US Dollar and US debt. However, while Circle Internet Group (NYSE:CRCL) is a key player in the stablecoin market, Cramer wondered whether the firm has a lasting competitive advantage in the hot sector: 'But I question, whether Circle is going to be proprietary? Because anyone can set up a stablecoin. Cramer isn't a fan of Circle Internet Group (NYSE:CRCL) as he recently commented: 'It can be any part of the PARCs… Circle Internet Group, the red-hot recent IPO that I'm not particularly fond of because it's a stable coin play, and pretty soon, because of that GENIUS Act, I think it'll be flooded with stable coins.' While we acknowledge the potential of CRCL as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an extremely cheap AI stock that is also a major beneficiary of Trump tariffs and onshoring, see our free report on the . READ NEXT: 30 Stocks That Should Double in 3 Years and 11 Hidden AI Stocks to Buy Right Now. Disclosure: None. This article is originally published at Insider Monkey.
