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Cathie Wood doubles down on Circle after CRCL stock selloff
Circle’s stock is still down 42% over 12 months, but it has gained 30% in a month as USDC remains a major part of the stablecoin market.
Cathie Wood has increased her exposure to Circle Internet Group, buying more of the NYSE-listed shares despite a sharp drop in the stock over the past year, according to an analysis by Yahoo Finance citing comments from analyst Alex Obchakevich.
Circle is the issuer of USDC, a stablecoin pegged 1:1 to the US dollar, and it ranks as the second-largest stablecoin after Tether’s USDT. DeFiLlama data cited in the piece puts USDC’s market cap at $73.88 billion, or 24.36% of the total stablecoin market.
Over the last 12 months, Visa is up 5% and Mastercard is up 1%, while Circle is down 42%, the analysis said. It also noted that Circle gained 30% over the course of a month, framing the move as a shift in how stablecoin economics are viewed.
The article points to changes in Circle’s business model beyond what it described as a “pure rates trade,” saying Circle received regulatory approval to operate as a federally regulated trust bank and became profitable in the second quarter, with transaction revenue doubling. It also highlighted that Visa and Mastercard joined an open standard consortium behind Open USD last month, and that stablecoin transfers reached $33 trillion last year.