Group 1 - Circle Internet Group's shares fell 12.9% this week, reaching new lows after its IPO earlier this year, influenced by a broader decline in the cryptocurrency market and falling Bitcoin prices [1] - Bitcoin's price has decreased by 20% over the last month, currently trading at $85,000, which negatively impacts the sentiment around cryptocurrencies [2] - Despite the negative sentiment, Circle operates as a stablecoin issuer with its USDC currency pegged to the U.S. dollar, aiming to increase its use in payments and personal finance [3] Group 2 - In the last quarter, USDC in circulation grew 108% year-over-year to $73.7 billion, with Circle generating revenue of $292 million, a 55% increase, and achieving a net income of $153 million [4] - Circle's business model resembles that of a bank, investing in interest-earning assets like U.S. Treasury bonds, which contributes to its profitability [4] - The stock is considered potentially undervalued, trading at a market cap of $17 billion with a P/E ratio of 28, while annualizing its net income suggests over $600 million in earnings power [7]
Why Circle Internet Group Stock Fell 12.9% This Week