CircleIPO

Next week, there is an important event in the crypto stock market: USDC issuer Circle has initiated its IPO, and it is expected to successfully list next week. I see that the crypto community is very enthusiastic about this, believing that raising only $100 million (as planned) is too low, and the stock price can easily be driven up. However, the IPO amount may be higher than $100 million, and there are existing shareholders selling shares during the IPO process, with the proportion being larger than the IPO portion. This is similar to Coinbase's direct listing back in the day, where no existing shareholders expressed interest in purchasing additional shares in the IPO. This feedback is not a good sign internally.

Circle's gross margin for 2024 is 39.31%, with revenue higher than in 2023, but profits have declined. Circle is the first stock of a stablecoin and the second-largest stablecoin operator globally. It is still uncertain how the market will react to the stock price. However, the market cap is not large, so be cautious of a high opening price that could lead to being trapped (similar to those who chased high during Coinbase's listing in 2021 and are still not out of the red).

The stablecoin industry is significantly affected by regulatory policies and interest rate fluctuations. On the regulatory front, the recently passed stablecoin bill is a positive development, but it also means that future industry competition will increase.

There are also risks; the main revenue from stablecoins comes from government bond interest and transaction fees. Interest rates are currently high, and if they decrease in the future, revenue may decline, leading to a drop in valuation. Wall Street will certainly price the IPO based on the current scale with precise valuation. The short-term stock price trend after listing will mainly depend on market sentiment, while long-term growth will be influenced by scale expansion and interest rate changes.

USDC #USDT #Circle

Data from SEC - Circle's prospectus financial statements

免责声明：本文章仅代表作者个人观点，不代表本平台的立场和观点。本文章仅供信息分享，不构成对任何人的任何投资建议。用户与作者之间的任何争议，与本平台无关。如网页中刊载的文章或图片涉及侵权，请提供相关的权利证明和身份证明发送邮件到support@aicoin.com，本平台相关工作人员将会进行核查。