Circle / The model of borrowing USDC from LUNA / USDT is not feasible:

▰ If issuing bonds, the expectation of the entity taking over the bonds issued by CRCL should be greater than the risk-free return of government bonds, but CRCL can only buy government bonds, and the flywheel cannot get started.

▰ If issuing additional stocks, for example, after selling ATM, issuing stablecoins, the magnitude that can be extracted from a virtual market value of 50 billion is limited to 10%, making it difficult to impact an issuance volume of 60 billion.

▰ If issuing convertible bonds, even for MSTR, the current scale of convertible bonds has not reached 10% of the market value (the 42B plan is pending, but at least currently it does not exist). Similarly, returning to the logic of issuing additional stocks—if the limit for this operation is an additional 5 billion USDC issued, there is no need to take such risks.