Latest news with #USDC
Yahoo
7 hours ago
- Business
- Yahoo
An Extremely Profitable Business Plans to Go Public. What Investors Need to Know.
This company's revenue is growing at a high-double-digit percentage rate while commanding a compelling profit margin. This interesting cryptocurrency company will be worth watching as it makes its market debut. 10 stocks we like better than USDC › On May 27, Circle Internet Group updated its filings to become a publicly traded company. It's possible that investors haven't heard of Circle. But cryptocurrency enthusiasts are likely quite familiar with Circle's stablecoin USD Coin (CRYPTO: USDC), the second-largest stablecoin by market cap. A stablecoin is an interesting class of cryptocurrency. The price of Bitcoin (CRYPTO: BTC), for example, recently increase to an all-time high because its price changes relative to the U.S. dollar. It has a mechanism that controls the circulating supply of Bitcoins. And if demand exceeds this supply, then the price goes up. Stablecoins such as USDC don't work that way. Those wanting to use stablecoins can go to a cryptocurrency exchange such as Coinbase (NASDAQ: COIN). Once there, they deposit real dollars and exchange them for stablecoins. For every dollar they put in the system, a corresponding stablecoin is issued. This way, the price of each stablecoin should always be $1, rather than fluctuating like Bitcoin. Moreover, users should be able to exchange stablecoins back for dollars if and when they choose. Circle is a stablecoin issuer, and this business model can actually be extremely profitable. The costs to operating a stablecoin system are relatively low. Meanwhile, the stablecoin issuer needs to keep reserves in case users redeem their coins. These reserves turn into stable interest and investment income. The largest stablecoin entity is Tether, with a market value of more than $150 billion. It's not publicly traded, but it still reports financials from time to time. In the first quarter of 2025, it reported an operating profit of $1 billion, it had excess reserves of $5.6 billion, and its management is busily investing in other business ventures such as renewable energy. In other words, Tether seems to be a cash cow business with low need to reinvest in the business, freeing it to invest in other opportunities. This favorable stablecoin business model is why investors should keep an eye on Circle. Let's start with some concrete numbers. In the first quarter of 2025, Circle's total revenue rose 58% year over year to $579 million. And the company had operating income of $93 million, which was up 78%. That's good growth. And the table shows progress during the past three years. 2022 2023 2024 Revenue* $772 million $1.5 billion $1.7 billion Gross margin 60% 50% 39% Operating income ($38) million $270 million $167 million Data source: Circle's filings. Table by author. *Revenue from continuing operations. Circle had a Q1 operating margin of 16%, which is good. But the one thing apparent from the table is that the company has traded profitability for growth. Growth skyrocketed in 2023, whereas its gross margin took a significant step back. What gives? As it turns out, cryptocurrency exchange Coinbase helped launch USDC originally, so it's long had a vested interest. The company perceived that the stablecoin needed help, and so it reworked its partnership with Circle in 2023. Coinbase actively began pushing for USDC's growth while taking a larger cut of the profits. In other words, Circle would likely be far more profitable if it didn't partner with Coinbase. But otherwise, it might not be as big as it is today. It's something to be aware of, but the partnership is probably a net benefit. At the risk of oversimplifying things, high-growth, profitable businesses often make good investments. For this reason, I believe investors should watch Circle Internet Group stock once it goes public. But there are some risks to consider as well. First and foremost, Circle profits from user deposits. Although this is easy money, a lot of it has to do with interest rates, which are outside the company's control. Supposing rates trended lower, it would lower Circle's interest income. It's theoretically possible to see adoption go up and interest income go down. Second, as of this writing, Tether's market cap is $153 billion, according to CoinMarketCap, whereas USDC is only $61 billion. This suggests stablecoin users prefer Tether. In fact, without Coinbase's big push in 2023, it's debatable how big USDC would be. So it's fair to question the sustainability of its growth from here. Finally, legislation regarding stablecoins is always a concern. The current political atmosphere in Washington appears favorable to cryptocurrency. But the market could benefit from legislative clarity, and there's no guarantee which way things could go. However, taking this all into consideration, I believe that Circle stock could be a good long-term investment. This assumes that cryptocurrency adoption continues, Coinbase stays in its corner, and interest rates don't plunge overnight, which I believe are reasonable assumptions. For these reasons, I'll be watching Circle as it goes public. Before you buy stock in USDC, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and USDC wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $638,985!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $853,108!* Now, it's worth noting Stock Advisor's total average return is 978% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 19, 2025 Jon Quast has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin and Coinbase Global. The Motley Fool has a disclosure policy. An Extremely Profitable Business Plans to Go Public. What Investors Need to Know. was originally published by The Motley Fool
Yahoo
a day ago
- Business
- Yahoo
Solana Price Prediction - What could affect SOL's future price?
Solana price prediction remains mixed as the asset contends with bullish ETF prospects and network upgrades versus regulatory delays and technical resistance, with the $180–$188 zone seen as a key breakout level. - ETF delays curb institutional momentum short-term - USDC minting and DeFi growth boost utility - Technical resistance at $176–$188 critical for trend ETF Applications: Six U.S. spot Solana ETF filings (Fidelity, VanEck) face SEC delays, but approval could mirror Bitcoin's 2024 ETF-driven surge. Analysts note a 82% approval chance via Polymarket, with potential inflows if greenlit. USDC Expansion: Circle minted $250M USDC on Solana (May 30), enhancing liquidity for DEXs like Raydium. Solana hosts 34% of all stablecoin volume, driving fee revenue. Institutional Funding: Sol Strategies aims to raise $1B for validator infrastructure, signaling long-term ecosystem bets. Layer-1 Rivalry: Base hit 959 TPS during a token launch (May 29), nearing Solana's 1,039 TPS. However, Solana's $15.3B TVL and $9B DeFi dominance still lead. Meme Coin Reliance: 75% of Solana's Q1 revenue came from meme projects like A slowdown here could pressure fees. Resistance Zone: SOL faces stiff selling at $176.28 (38.2% Fibonacci) and $187.28 (swing high). A close above $180 could target $216 (161.8% extension). Bearish Signals: MACD histogram (-1.73) and RSI (49.67) suggest consolidation, but the 50-day SMA ($154.83) underpins mid-term support. Solana price prediction depends on ETF clarity, DeFi adoption, and reclaiming the $180 resistance level. While network upgrades and stablecoin growth help offset meme coin volatility, SEC delays and rising L1 competition continue to pose risks. Will institutional patience outlast regulatory uncertainty? Solana price prediction remains uncertain amid mixed sentiment: bullish institutional developments clash with technical caution and ETF delays. Traders are eyeing the $200 resistance, while analysts debate short-term volatility versus long-term growth potential. - Institutional adoption surges with Coinbase's 24/7 SOL futures and USDC's $250M Solana mint. - Technical concerns linger as SOL faces resistance at $170–$180 amid overbought signals. - ETF speculation intensifies despite SEC delays, with experts predicting $440–$600+ if approved. Bullish momentum dominates long-term narratives (30-day price +11.35%), but short-term sentiment cooled after a 10% weekly drop. The Crypto Fear & Greed Index fell from 74 (Greed) to 61 (Neutral) this week, reflecting caution after $750M liquidations. Bullish drivers: Coinbase launching 24/7 SOL futures, USDC's $250M mint on Solana. Bearish pressures: SOL rejected at $185 resistance, negative funding rates (-0.0002%), and whale profit-taking. Institutional Adoption:- Coinbase's SOL futures launch (June 13) aims to bridge U.S. and global markets, with derivatives now 75% of crypto trading.- ARK Invest added SOL exposure via a Canadian ETF, citing 'confidence in Solana's growth'. ETF Speculation:- Analysts like VirtualBacon project $440–$600 SOL if spot ETFs gain U.S. approval by late 2025 (X).- SEC delays for Grayscale and 21Shares applications have stalled momentum, but Polymarket odds favor an 82% approval chance. Technical Outlook:- SOL's RSI (73) and Stochastic Oscillator (94) signal overbought conditions, with bears targeting $157–$152 support.- A breakout above $180 could trigger a rally toward $280, per ascending trendline analysis. Chris Burniske (Placeholder VC): 'Loving where the market is… Solana could outperform BTC/ETH'. Peter Brandt: Forecasts $500+ SOL if network stability improves and ETF narratives materialize. Solana Post: Warns of meme-driven volatility but highlights SOL's dominance in DeFi (2nd in TVL) and NFTs. Solana price prediction hinges on ETF approvals, institutional inflows, and technical resilience above $170. While short-term risks persist, its ecosystem growth (DeFi, USDC integration) and developer activity (Firedancer upgrade) underpin bullish conviction. Will SOL's ETF momentum outpace regulatory headwinds in Q4 2025? To get the latest update on Sol, visit our Solana currency page. Content created: 30th May 2025 Disclaimer: Content generated by CMC AI. CMC AI can make mistakes, please DYOR. Not financial advice. Sign in to access your portfolio
Int'l Business Times
a day ago
- Business
- Int'l Business Times
Zircuit Enables Non-Custodial Wallet Top-Ups for Crypto.com Visa Cards
Chainwire George Town, Grand Cayman, May 30th, 2025, Chainwire Zircuit, the chain where innovation meets security, announced the launch of non-custodial wallet top-ups for Visa Cards. This new integration enables users to seamlessly fund their cards via Zircuit. Now live in the App, this feature allows users to connect a non-custodial wallet to their Crypto Wallet and transfer ZRC via Zircuit Chain. Users can convert the assets into supported tokens like USDC or ETH as needed to complete the top-up process. This makes it easier than ever to spend crypto wherever Visa is accepted. 'At Zircuit, we're committed to expanding the possibilities of crypto in the real world,' said Dr. Martin Derka, co-founder of Zircuit. 'This integration with brings us one step closer to that future, offering users the freedom of self-custody and the convenience of everyday spending.' How it works: Users connect their non-custodial wallet to the Crypto Wallet in the App via Zircuit Chain. Funds are sent directly from the connected wallet, converted to fiat, and used to top up the Visa Card If needed, assets are auto-converted to supported tokens like USDC or ETH. Users can visit for step-by-step instructions or access the FAQ for more information. About Zircuit Zircuit: Where innovation meets security, designed for everyone. Zircuit offers developers powerful features while giving users peace of mind. Designed by a team of web3 security veterans and PhDs, Zircuit combines high performance with unmatched security. Experience the safest chain for DeFi and staking. To learn more about Zircuit, users can visit and follow them on Twitter/X @ZircuitL2 Contact Head of Communications Jennifer Zheng Zircuit jen@ © Copyright Chainwire. All rights reserved.
Yahoo
a day ago
- Business
- Yahoo
The Chime IPO: what investors should know about its $31 a share private market valuation and more
Times have changed for Chime, the once hot fintech that was valued at $25 billion in 2021. That year, the IPO market was sizzling when more than 1,000 companies went public on U.S. exchanges. Chime was widely expected to be one of those companies, but it chose to wait. Four years later, Chime's valuation appears to have fallen by more than half, while the IPO market is trying to rebound with some big names, like crypto provider Circle, looking to list. New issues have turned in some strong performances during the past month. The public offerings of online broker eToro Group, Hinge Health and MNTN, the connected TV advertising platform, each rose during their respective debuts and, more importantly, all three have remained above their IPO prices. One of the biggest tests for IPOs will come next week when Circle, the issuer of the crypto stablecoin USDC, begins trading on June 5. Circle could raise as much as $624 million at a roughly $6.7 billion valuation. The Circle IPO is multiple times oversubscribed, Bloomberg reported. Against this positive background, Chime is expected to launch its roadshow soon. It will then give more information on its pending IPO, including how many shares it will sell and at what price. The fintech will trade on the Nasdaq under the ticker CHYM. Founded in 2012, Chime offers traditional financial services, like fee-free checking and savings accounts, to lower income U.S. consumers that earn up to $100,000 a year. The startup had 8.6 million active members as of March 31, with two-thirds relying on Chime as their primary bank, according to a regulatory filing. Roughly 70% of its members use Chime to buy food, groceries, gas and utilities. As of March 31, the startup employed 1,465 workers, or 'Chimers,' spread across three offices, including one-third in San Francisco. Chime is not a bank and doesn't have a bank charter. Instead, it partners with Bancorp Bank and Stride Bank to provide its services. 'Chime definitely has a great brand for that particular cohort, the under banked,' said Dan Dolev, a senior analyst in fintech equity research at Mizuho Securities. 'They've done a great job getting the name out there.' Perhaps the biggest question hanging over Chime is its valuation. Chime has collected $2.3 billion in funding from investors, including General Atlantic, Tiger Global Management, and Sequoia Capital. In 2021, the last time Chime raised money, its shares were valued at $69.07 but that has fallen. Pricing data from Forge, an online marketplace for buying and selling shares of private firms, marked Chime at $31.50 as of May 26. Chime shares have actively traded in the private markets this year and the $31.50 is based on recent trading activity, Forge said. On Hiive, a private stock marketplace, the last accepted bid for Chime was $31 in early March, a spokesman said. There are also standing bids for Chime shares at $40 but no sellers, the spokesman said. This likely indicates that sellers are waiting for prices to move higher. Some believe it is misleading to value a company based on secondary market prices. The secondary market is considered less transparent than the public market, it is more loosely regulated and sales often involve small volumes of stocks, which may not accurately represent a company's true value. Either way, a $31 or $31.50 price for Chime indicates a drop in value of more than 50%. Chime has yet to disclose how many shares it has outstanding so the fintech's total valuation is unclear. 'Like many companies, Chime likely could have gotten a higher valuation had it gone public at the peak of the last cycle in 2021,' said Matt Kennedy, senior IPO strategist at Renaissance Capital, a provider of pre-IPO research that manages two IPO-focused ETFs (NYSE: IPO, IPOS). Chime declined to comment. The field of companies that offer services to lower income consumers has grown more crowded. Green Dot, which has targeted this segment since 2001, is currently up for sale. (Chris Britt, Chime's cofounder and CEO, previously worked at both Green Dot and Visa.) One of Chime's bigger rivals is Cash App, which targets the same group of low-income consumers. Revenue for Cash App in 2024 rose 11% to $16.2 billion, with most, about $10.1 billion, coming from Bitcoin trading. Block, formerly known as Square, owns Cash App. 'Cash App is so established that it makes it difficult to compete,' Dolev said. Mizuho's Dolev says Cash App, which has a debit card, has a more diversified revenue stream than Chime which relies on unregulated interchange—a term that describes debit card fees not subject to a federal cap. Dolev estimates that Chime makes about 1% of every dollar spent in debit card transactions on a net basis, while large banks are capped at 21 cents per transaction. For example, if a consumer uses a Chime debit card to buy $50 worth of groceries at the supermarket, the fintech makes about 50 is the first US-based neobank to go public via a traditional IPO, Renaissance Capital's Kennedy said. (Nu Holdings, of Brazil, went public in 2021 but targets Latin America.) Other neobanks waiting to launch their IPOs include Klarna, which is known more for its buy now, pay later, or BNPL, services. Klarna is reportedly delayed until late in 2025. Revolut, the London fintech, is a licensed bank in the EU and is widely anticipated to go public but has yet to set a date. Chime is unprofitable on a yearly basis with losses narrowing to $25.3 million in fiscal 2024. The company was profitable in the first quarter, reporting nearly $13 million in net income, compared to nearly $16 million in profit for the same quarter in 2024. (But it reported nearly $20 million in losses for the three months ended Dec. 31.) Revenue for Chime rose 31% to about $1.7 billion for fiscal 2024 and grew on a quarterly basis, by 32%, to $518.7 million for the three months ended March 31. A majority of its revenue comes from interchange. 'I think we would have liked to see more progress on the bottom line, the net income side, but I don't see any huge red flags,' Renaissance's Kennedy said. This story was originally featured on Sign in to access your portfolio
Yahoo
2 days ago
- Business
- Yahoo
What is a stablecoin, anyway? Circle's $6.7 billion IPO filing puts spotlight on crypto tokens pegged to the U.S. dollar
The issuer of USDC, a popular stablecoin that's pegged to the U.S. dollar, is officially launching an initial public offering. Circle Internet Group filed paperwork with the U.S. Securities and Exchange Commission on Tuesday to raise up to $624 million by offering 24 million shares to investors. Spicy AI-generated TACO memes are taking over social media because 'Trump always chickens out' Lego's first book nook is an addictively interactive diorama Forget quiet quitting: I'm using 'loud living' to redefine workplace boundaries With its IPO plans, New York-based Circle is hoping to put a lot of circles—well, zeros—behind its valuation, targeting up to $6.71 billion. Tuesday's filing has been long-awaited, as the company confidentially filed for an IPO in January 2024 after scrapping 2022 plans to go public via a merger with a special purpose acquisition company (SPAC). While more players in the crypto space have been diving into public markets in recent years, Circle's filing comes at pivotal timing amid a lot of interest in stablecoins. The company's biggest coin, USDC, is the seventh-largest cryptocurrency by market cap, according to CoinMarketCap, and second-largest stablecoin behind Tether. You may have been hearing more talk of stablecoins among investors and even the U.S. government. But what even is a stablecoin, anyway? If you're confused, read on for a complete breakdown of what you need to know. Stablecoins serve a much different role in the crypto space than the likes of Bitcoin or Ethereum, which can experience wild spikes in their prices. As the name suggests, stablecoins are intentionally stable in price because their value is pegged to an asset like the U.S. dollar. Both the Tether and USDC coins are pegged 1:1 to the U.S. dollar, meaning that for every unit of these cryptocurrencies in circulation, they're backed by $1 of cash or U.S. Treasury bonds. Their prices typically fluctuate only tiny fractions of a cent higher or lower than $1. Even amid Tuesday's IPO news, the price of USDC was essentially flat. Circle is also the issuer of EURC, which is pegged to the value of the euro. Given their price stability, stablecoins offer a valuable ballast to investors amid the volatility of crypto markets for investors. Once popular as a bridge between traditional and decentralized finance markets, there's been more interest in stablecoins as various countries around the world embrace cryptocurrencies. If you feel like you're hearing more about stablecoins lately, it's because they've been the topic of recent debate in the U.S. Senate. In February, Senator Bill Hagerty, a Republican from Tennessee, introduced the GENIUS Act, which would have classified stablecoins as securities under the jurisdiction of the SEC to establish regulatory guardrails for these coins. That Act would have brought a new layer of legitimacy to the crypto industry by bringing stablecoins into the regulated financial system. But the U.S. Senate voted earlier this month to block further advancement of the GENIUS Act, which was widely viewed as a significant setback for the industry. Once a skeptic, President Donald Trump has become a vocal proponent of cryptocurrencies, though some investors worry his support isn't helping. The $TRUMP meme coin launched just days before he returned to the office for his second term. In March, he voiced his support for legislation that provides regulatory certainty for stablecoins and has said he wants the U.S. to be the 'crypto capital' of the world. Even though stablecoins have been the topic of much debate in Washington, D.C. that's not likely to affect Circle's IPO. There's been a relative dearth of initial public offerings since an all-time record in 2021 and investors may be eager to hop aboard a new offering, particularly amid a broader market recovery. Circle has applied to list its stock on the New York Stock Exchange under the ticker symbol 'CRCL' and indicated that shares could be priced between $24 and $26. But there's no definitive timeline yet for when the stock could begin trading. This post originally appeared at to get the Fast Company newsletter:
