Circle (CRCL) nearly 50% higher in two sessions since earnings results
Circle's stock surged nearly 50% post-earnings, primarily fueled by a short squeeze rather than strong financials.Summary
Circle, the issuer of the USDC stablecoin, saw its stock price jump nearly 50% in under two trading sessions following its fourth-quarter earnings report, recovering significantly from an earlier drawdown. Analysts suggest this massive rally was driven less by the headline financial figures and more by a short squeeze, as hedge funds had built up significant bearish positions ahead of the report. While USDC supply grew strongly, deeper analysis shows profitability slipped, with net profit turning into a $70 million loss due to rapidly increasing distribution costs outpacing revenue growth from reserve income. Despite the fundamental challenges, Circle topped analyst expectations, leading Mizuho to raise its price target to $90, citing optimism around prediction markets and the emerging role of USDC in "agentic commerce" for AI transactions.
(Source：CoinDesk)