Circle Internet Financial, the company behind USD Coin (CRYPTO: USDC), is showing a mixed financial picture ahead of its planned public listing, with revenue up by 16%, but profitability down due to higher costs and increased redemptions.
What Happened: In a post dissecting the newly filed S-1 prospectus, Matthew Sigel, Head of Digital Assets Research at VanEck, highlighted the disconnect between Circle’s topline momentum and its bottom-line performance.
According to Sigel, the company’s earnings before interest, taxes, depreciation and amortization (EBITDA) fell by 78%, while net income dropped 66%, despite strong revenue growth.
The reason: rising costs and a more competitive market environment.
Sigel noted that Circle’s redemptions surged to $165 billion in 2023, up from $98 billion in 2022, suggesting that users are increasingly rotating capital in and out of the stablecoin—likely to optimize yield.
He pointed to a “deterioration in margins” driven …
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