Circle Stock Hits New Peak, Up 347% Since IPO as Institutional Interest in CRCL Explodes
Circle's stock, CRCL, reached an intraday high of $138.57 on its third trading day, up 347% from its IPO price of $31. The stock later cooled to $116.20, still reflecting an 8% increase for the day. Nearly 37 million shares traded on Monday, potentially surpassing Friday's 60.7 million. SBI Holdings invested $50 million in Circle, securing a significant share allocation. ARK Invest purchased 4.48 million shares of CRCL, potentially realizing an unrealized gain of over $524 million. ProShares filed to launch an Ultra CRCL ETF, while Bitwise introduced a covered-call style ETF. Circle's revenue primarily comes from interest on cash backing its stablecoins, making it sensitive to interest rate cuts, which could impact its EBITDA negatively. Currently, 53% of investors anticipate a 25 basis point rate cut from the Federal Open Markets Committee. FundStrat analyst Sean Farrell noted Circle's growth potential but highlighted its economic challenges and lack of market leadership.
