Core Viewpoint - Circle Internet Group announced the sale of 10 million shares, leading to a decline in its stock price, despite a significant increase in revenue and a notable IPO earlier this year [1][2]. Group 1: Stock Sale and Market Reaction - Circle plans to issue 2 million shares while shareholders will sell 8 million shares, aiming to raise $1.63 billion based on the closing price of $163.21 per share [1]. - Following the announcement, Circle's stock dropped by 4.8% to $155.4 per share [1]. - The stock price had previously surged over 426% since the IPO in June, where the company raised $1.2 billion [1]. Group 2: Financial Performance - Circle reported a net loss of $482 million (or $4.48 per share) for the second quarter, primarily due to significant non-cash expenses related to the IPO [2]. - In the same quarter last year, the company had a net profit of approximately $32 million [2]. - Revenue increased by 53% to $658 million, exceeding analysts' expectations of $647.3 million [2]. Group 3: Market Position and Future Outlook - Circle's USDC token currently has a circulation of approximately $65 billion, making it the second-largest stablecoin after Tether's USDT, which has a market cap of about $165 billion [3]. - The stablecoin is evolving from a tool for the crypto market to a general medium of exchange, providing cheaper and more efficient payment systems for merchants and consumers [3].

Group 1 - Tether Holdings SA, the largest stablecoin issuer globally, has a dedicated vault in Switzerland storing approximately $8 billion in gold reserves, making it one of the largest holders of gold outside of banks and sovereign institutions [1][2] - The company currently holds nearly 80 tons of gold, with most of it directly owned by Tether, and the gold reserves account for nearly 5% of the total assets backing its stablecoin USDT, which has a circulation of $159 billion [1][2] - Tether's CEO, Paolo Ardoino, stated that the company opted for its own vault to reduce storage costs, especially if the circulation of its gold-backed token XAUT grows to $100 billion [2] Group 2 - The new regulatory framework for stablecoins poses a potential threat to Tether's gold reserves, as recent regulations in the EU and proposed legislation in the US only allow cash and cash equivalents as backing assets for stablecoins [3] - If Tether seeks authorization in relevant markets, it may be required to sell its gold reserves to comply with these regulations, reflecting concerns from regulators about large fund transfers bypassing the traditional banking system [3] Group 3 - Ardoino expressed optimism about the long-term value of gold, suggesting it is a safer asset than any national currency, especially amid concerns over rising US debt [4] - Gold prices have increased by approximately 25% this year, as investors view it as a hedge against geopolitical tensions and expanding trade wars [4] - Strong demand from global central banks and sovereign institutions, particularly from BRICS nations, is also supporting the rise in gold prices [5]