Wu Blockchain (@WuBlockchain): Dragonfly investor Omar said a 100 bps rate cut would slash Circle's annualized revenue by $618M (-23%), gross profit by $303M (-30%), and margins by…
Estimated coin impact
Scores are not price-change percentages. High impact means a score of +70 or more, or -70 or less.
- USDC-10Negative
Dragonfly investor Omar said a 100 bps rate cut would slash Circle's annualized revenue by $618M (-23%), gross profit by $303M (-30%), and margins by 3.3 points, raising its valuation from 42x EV/annualized gross profit to 60.4x (~50% higher). To offset the impact, USDC supply would need to grow by $28B (44% of the current $64B). He noted rate cuts are inevitable, explaining yesterday’s ~$1.5B share sale and Circle's push to launch transaction flow monetization products like CPN and Circle Chain. https://t.co/ixkrDudQg4