🌟XinGPT Research US Stock Research - Circle IPO Analysis🌟

Circle, as the highly anticipated first stock of a stablecoin, will officially start trading tomorrow, June 5th. I spent two days reading the complete S-1 prospectus, and now let's break down Circle and see how to go all in.

1️⃣Circle Business Model

The business logic of stablecoins is actually very simple; it earns the interest income from the total amount of stablecoins issued. That is, the larger the issuance, the higher the U.S. benchmark interest rate, and the higher the interest income.

As shown in the figure below, Circle revenue = Stablecoin issuance * Benchmark interest rate, with an issuance of approximately 43B in 2024 and a benchmark interest rate of about 4.5%, resulting in an annual revenue scale of approximately 1.66 billion USD.