Circle: Everything Is Falling Into Place

Summary Circle remains a compelling long-term opportunity, despite a halved share price and recent crypto market weakness. CRCL secured a federal trust bank charter, cementing regulatory leadership and making USDC the preferred settlement asset for institutions. USDC circulation and onchain transaction volume are growing robustly, even in a bearish market, with management reiterating a 40% multi-year CAGR target. Base case valuation projects ~2x upside over four years, but risks include new stablecoin competition, rising expenses, and regulatory uncertainty. This idea was discussed in more depth with members of my private investing community, The Pragmatic Investor. Learn More » aprott/iStock via Getty Images Thesis Summary Since I last covered Circle Internet Group, Inc. ( CRCL ), a lot has happened. The stock has since roughly halved, falling together with the broader crypto market and as hype from the IPO died down. This article was written by James Foord 29.73K Followers Follow James Foord is an economist by trade and has been analyzing global markets for the past decade. He leads the investing group The Pragmatic Investor where the focus is on building robust and truly diversified portfolios that will continually preserve and increase wealth. The Pragmatic Investor covers global macro, international equities, commodities, tech and cryptocurrencies and is designed to guide investors of all levels in their journey. Features include a The Pragmatic Investor Portfolio, weekly market update newsletter, actionable trades, technical analysis, and a chat room. Learn more. Analyst’s Disclosure: I/we have a beneficial long position in the shares of CRCL either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.