Japanese investment bank Mizuho downgraded Circle’s rating from “neutral” to “underperform,” and cut its target price from $85 to $50, saying Circle’s OpenUSD model for distributing most reserve investment returns to issuers and channel partners may force Circle to share more revenue with partners, thereby compressing profit margins. Mizuho therefore raised its forecast for Circle’s 2027 distribution and trading cost ratio from 64% to 73%, and cut its adjusted EBITDA forecast from $1.09 billion to $699 million. (CoinDesk)

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MinersUnderTheNeonBridge
· 7h ago
Mizuho really cut hard with this one. The OpenUSD mode sounds like it’s forcing Circle to become a hired hand, with all the profits swallowed up by the channels.
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BearMarketWithAHintOfOrange
· 7h ago
A 73% cost ratio—how can this even work? Traditional finance analysts still look at stablecoins with the old playbook, but whether the market will effectively vote with its feet is another matter.
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