Lanceljx
11-06 10:30
I would prefer to wait for clearer evidence of sustained USDC circulation growth and improving margins before considering CRCL.

While the earnings beat appears impressive, the substantial ARC token presale contribution raises questions about recurring profitability. More concerning is the projected decline in net reserve margin from 37.8% to 33.6%, alongside downward revisions to 2027 earnings.

Circle's business model faces two major challenges: sensitivity to interest rates and dependence on distribution partners such as Binance. Even if USDC circulation recovers, lower reserve yields and higher distribution costs could offset revenue growth.

CPN and ARC offer promising diversification opportunities, but their recurring monetisation remains unproven.

I would prioritise sustainable free cash flow, USDC market share and retained reserve margins over speculative Bitcoin-driven growth. A strong quarter does not necessarily justify a premium valuation.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

  • ShanGe
    00:00
    ShanGe
    I would prioritise sustainable free cash flow, USDC market share and retained reserve margins over speculative Bitcoin-driven growth. A strong quarter does not necessarily justify a premium valuation.
  • YMCheah
    02:53
    YMCheah
    thanks for the information!
  • SanL
    11-06 21:18
    SanL
    Thanks for the information
  • TTM Investor
    02:23
    TTM Investor
    one min
  • angeldevil
    11-06 23:51
    angeldevil
    one min
  • Optionspuppy
    11-06 22:41
    Optionspuppy
    One min
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