Circle reported earnings earlier this week, beating expectations, and the shares have had quite the run this week to discuss the report and developments since its IPO last year. We want to welcome in our next guest. That's Jeremy Fox, CFO of Circle.Jeremy, thank you so much for joining us. Uh, great quarter. I mean, the EPS number strong, much stronger than expected, sizable beat there.Revenue better than expected, 770 million. Take us through just some of the highlights really quickly. >> Good morning, Dia ...

Financial Data and Key Metrics Changes - USDC in circulation reached $75.3 billion at year-end, up 72% year-on-year, growing faster than the overall fiat-backed stablecoin market [28] - Total revenue and reserve income increased 77% year-on-year to $770 million for the quarter [29] - Adjusted EBITDA grew 412% year-on-year to $167 million, with an Adjusted EBITDA margin of 54% [33] Business Line Data and Key Metrics Changes - On-platform USDC grew 5.6 times year-on-year to $12.5 billion, representing 17% of total circulation [28] - Circle Payments Network (CPN) annualized volume reached $5.7 billion, growing approximately 68% from the previous quarter [22] - EURC reached EUR 310 million, representing 3.8x year-on-year growth, and has grown to EUR 389 million as of February 20th [20] Market Data and Key Metrics Changes - The stablecoin market grew by $85 billion in the year, with 46% year-on-year growth [11] - Circle's share of transaction volume grew from 39% in Q3 to nearly 50% in Q4 [12] - CCTP (Cross-Chain Transfer Protocol) accounted for over 60% of all bridged volume in January [18] Company Strategy and Development Direction - The company aims to build a new internet financial system and software infrastructure, focusing on the integration of AI and blockchain technology [5][8] - Circle is expanding its platform from a stablecoin network to a comprehensive infrastructure partner for on-chain finance [16] - The company is investing in product development for CPN and anticipates adding 11 new markets in the coming months [23] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the transformative potential of AI and blockchain integration, predicting significant economic activity acceleration [5][26] - The regulatory environment, particularly the GENIUS and CLARITY acts, is seen as a positive tailwind for the business [52][56] - The company expects USDC to grow at a 40% CAGR over a multi-year cycle, with continued investment in platform capabilities [35] Other Important Information - The company launched the test net of Arc, its layer one blockchain network, and is on track to launch the main net in 2026 [9][18] - Partnerships with major enterprises like Intuit and Visa are expanding the use of USDC in real-world applications [10][11] - The company is actively exploring the potential of an Arc token to provide stakeholder incentives and governance [48] Q&A Session Questions and Answers Question: Timing of agentic evolution and USDC's role - Management discussed the timing of agentic economic activity, emphasizing the importance of USDC as a medium of exchange for AI agents and the design of Arc to support this [39][40][44] Question: Regulatory progress from GENIUS and CLARITY - Management noted that GENIUS has created a legal foundation for institutions to enter the market, while CLARITY is close to completion and could significantly unlock market potential [52][56] Question: Long-term vision for Arc and CCTP - Management described Arc as a distributed economic operating system that will support various asset issuers and enhance liquidity and distribution capabilities [62][63][66] Question: Importance of USDC in prediction markets - Management highlighted USDC's critical role in the fast-growing prediction market segment, particularly through the partnership with Polymarket [85][86]

Group 1 - The article discusses the differences between the "new generation" of retail and institutional investors, highlighting the impact of social media and demographic changes on retail investor behavior [2][4][5] - Tom Lee emphasizes that every 20 years, retail investors in the U.S. tend to regain interest in stocks, driven by generational shifts and market experiences [5][6] - The rise of stablecoins is noted as a significant trend, with companies like Circle being recognized as top IPOs, indicating a shift towards tokenization in finance [3][24][25] Group 2 - Tom Lee's firm, Fundstrat, aims to provide institutional-level research that is accessible to all, reflecting a belief that retail interest in stocks will return [4][5] - The discussion includes insights on the Federal Reserve's interest rate policies and the complexities of interpreting U.S. employment data, suggesting that current metrics may not accurately reflect economic realities [8][11][12] - The article highlights the evolving role of retail investors, who are seen as more engaged and knowledgeable compared to institutional investors, particularly in the context of specific stocks [15][19] Group 3 - The article outlines the strategic decision to invest in Ethereum, driven by the anticipated growth of stablecoins and the belief that Ethereum will benefit from this trend [24][25][26] - Tom Lee discusses the advantages of treasury companies that hold Ethereum, emphasizing their potential for growth and the unique opportunities they present compared to traditional ETFs [26][27][30] - The narrative concludes with a focus on the transformative potential of companies like Palantir and Robinhood, which are seen as pivotal in reshaping the relationship between companies and their customers [33][34]

Group 1 - Thomas Lee discusses the differences between the "new generation" of retail and institutional investors, highlighting the impact of social media and demographic changes on retail investor behavior [2][4][5] - Lee emphasizes the cyclical nature of retail investor interest in stocks, noting that every 20 years, retail investors tend to regain confidence in the stock market [5][4] - The rise of stablecoins is seen as a significant trend, with companies like Circle being highlighted as successful IPOs, indicating a shift towards "tokenizing" equity in the crypto space [3][22] Group 2 - Fundstrat was founded to provide institutional-level research that is accessible to all, with a focus on the changing dynamics of retail investor engagement [4][5] - Lee believes that the current market transformation is largely due to social media platforms like X (formerly Twitter), which have empowered retail investors [17][6] - The discussion includes the potential for Ethereum to benefit from the growth of stablecoins, with Lee predicting a resurgence in interest for Ethereum as a programmable currency [22][23] Group 3 - Lee argues that retail investors are more focused on specific stocks and their personal experiences with companies, contrasting with institutional investors who often take a more macroeconomic view [14][15] - The conversation touches on the importance of understanding the unique characteristics of companies like Tesla and Palantir, which have strong brand loyalty and customer engagement [18][30] - The potential for a V-shaped market recovery is discussed, with Lee asserting that retail investors are driving this rebound despite institutional skepticism [13][15] Group 4 - The interview highlights the innovative strategies of companies like MicroStrategy and Bitmine, which are leveraging their positions in the crypto market to create value [24][22] - Lee outlines the advantages of treasury companies in the crypto space, emphasizing their ability to manage volatility and create unique investment opportunities [26][24] - The discussion concludes with insights on the evolving role of companies like Robinhood, which are reshaping the brokerage landscape for younger investors [31][30]

Financial Data and Key Metrics Changes - Total transaction volume for Q1 2025 reached $1,060 million, representing a 40% sequential decline and a 23% decrease compared to the broader market [4][5] - Total revenues net of crypto costs decreased by 25.9% year over year to $12.6 million, while total operating expenses decreased by 36.3% year over year to $31.1 million [6] - Net income improved by 176.5% year over year to $16.2 million, marking a significant turnaround from a loss [6][34] - Adjusted EBITDA loss improved by 11% year over year to CHF 14.5 million [6][37] Business Line Data and Key Metrics Changes - Crypto services revenue for Q1 was $3.5 million, reflecting a 5.4% decrease year over year and a 47.8% decrease sequentially [32] - Net royalty revenues were $9.2 million, down 30.3% year over year and 17.1% sequentially [32] - Total notional volumes in Q1 reached $1,210 million, with $1,060 million from crypto trading and $153 million from royalty redemptions [30] Market Data and Key Metrics Changes - The company reported 6.8 million crypto-enabled accounts, with 777,349 active accounts in Q1, showing a sequential decline but relatively flat year over year [29] - Assets under custody totaled $1,873 million, representing an 18.7% decrease from the previous quarter but a 52.5% increase year over year [30] Company Strategy and Development Direction - The company is transforming into a pure play crypto infrastructure company, divesting its custody business to ICE and exploring strategic alternatives for its loyalty business [5][6] - The collaboration with DTR aims to enhance the stablecoin payments ecosystem and improve operational efficiency [7][9] - The company is suspending quarterly guidance as it finalizes the commercial agreement with DTR and optimizes its operations [8] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the future, highlighting the favorable regulatory environment and the potential for significant growth in the stablecoin market [9][20] - The integration of DTR's technology is expected to create a powerful combination that will redefine digital payments globally [18][21] - The company aims to balance speed to market with client experience in its rollout strategy for new products [15][16] Other Important Information - The sale of the custody business is expected to close around May 15, 2025, and is presented as an asset held for sale on the balance sheet [6][36] - Key hires in leadership positions are expected to accelerate the company's strategic transformation [17] Q&A Session Summary - No specific questions or answers were documented in the provided content, indicating that the call concluded without a Q&A segment [38]