Circle's first financial report shows that its stock price has soared over 400% since its listing. The company's core revenue model involves investing USDC reserves in government bonds to earn interest, making its profitability highly dependent on the Federal Reserve's interest rate policy. Despite Wall Street expecting a loss in the second quarter, the overall performance of the financial report exceeded market expectations, with pre-market prices rising to over $170. The market remains more focused on its growth trajectory and business model.

There are differing views on Circle in the market:

Optimists see it as the 'AWS of digital dollars', with a huge potential market and strong network effects. Furthermore, the second quarter strengthened its strategic alliance with Binance, significantly expanding its distribution channels and market influence by partnering with the world's largest exchange. Currently, the annualized return on USDC wealth management products on Binance is approaching 12%, which reflects the marketing costs Circle has incurred to scale up, resulting in a rapid increase in the issuance of stablecoins by tens of billions of dollars.

Pessimists, on the other hand, are concerned about declining interest rates, competition from traditional finance and PayPal, high distribution costs, and regulatory uncertainties.

The key takeaway from this financial report is whether Circle can prove itself as a technology platform capable of product diversification and international expansion, rather than just a 'bond fund' affected by interest rates.