X @Wu Blockchain

Financial Impact of Rate Cut - A 100 bps rate cut would decrease Circle's annualized revenue by $618 million (-23%) [1] - Gross profit would decrease by $303 million (-30%) due to the rate cut [1] - Circle's margins would decrease by 3.3 percentage points following the rate cut [1] - Valuation would increase from 42x EV/annualized gross profit to 60.4x, approximately 50% higher [1] Strategies to Offset Impact - USDC supply would need to grow by $28 billion, representing 44% of the current $64 billion, to offset the rate cut impact [1] - Circle is pushing to launch transaction flow monetization products like CPN and Circle Chain [1] Market Actions - Circle conducted a ~$1.5 billion share sale [1] - Rate cuts are considered inevitable [1]