Circle Stock Rises 3.9% But Mizuho Downgrades to Sell, Slashes Target
Circle Internet Group (CRCL) shares closed at $65.69 on Thursday, up 3.9% from the prior day, but investor anxiety persists after Mizuho Securities downgraded the stock to 'Underweight' and slashed its price target from $85 to $50, implying a potential 21% decline from current levels. The stock remains about 76% below its June high. Concerns center on declining USDC circulation and intensifying competition in the stablecoin market.
Mizuho Warns of USDC Economics and New Rivals
Mizuho's downgrade and 41.2% target cut reflect expectations of worsening USDC economics. The emergence of OUSD — backed by Visa, Mastercard, and Coinbase — was flagged as a major risk. Despite the bearish call, the broader analyst consensus remains 'Hold' with an average target of $112–$123, suggesting over 70% upside from current prices.
Cathie Wood's ARK Buys $13.9 Million Worth of CRCL
Cathie Wood's ARK Invest added approximately 220,000 shares of Circle, valued at $13.9 million, citing the company's pending application for a U.S. federal trust bank charter. If approved, Circle would be the first to directly manage USDC reserves, potentially reducing regulatory risk. Circle also expanded global partnerships with Standard Chartered and BNY Mellon.
USDC Circulation Drops 7.4%, Stock Follows
USDC's circulating supply has fallen to $73.7 billion, down 7.4% from its peak, amid a broader crypto market downturn and the rise of competing stablecoins. The decline in USDC circulation has correlated with Circle's stock price slide.
Stablecoin Regulation: A Double-Edged Sword
The proposed CLARITY Act could strengthen USDC's legal status but may also intensify competition, reshaping the stablecoin landscape. Passage of the bill is seen as a pivotal variable for Circle's future.