Circle Internet Group stock rating reiterated by Bernstein amid stablecoin competition

Published 09/09/2025, 14:46
Circle Internet Group stock rating reiterated by Bernstein amid stablecoin competition

Investing.com - Bernstein SocGen Group has reiterated an Outperform rating and $230.00 price target on Circle Internet Group (NYSE:CRCL), currently trading at $118.51 with a market capitalization of $26 billion. The analysis addresses concerns about potential competition to its USDC stablecoin. According to InvestingPro data, analyst targets range from $84 to $280, reflecting the stock’s high volatility profile.

The firm’s analysis follows weekend discussions on cryptocurrency social media platforms regarding Hyperliquid, a leading on-chain futures exchange that currently uses approximately $5.5 billion in USDC (about 7.5% of total USDC supply) as collateral on its perpetual futures platform.

Recent developments include Paxos proposing a USDH stablecoin specifically for the Hyperliquid ecosystem, with 95% of interest earned from USDH potentially being used to buy back Hyperliquid’s native token, HYPE.

Bernstein acknowledges that Circle will face new competition following the GENIUS Act but emphasizes that "bootstrapping liquidity for new stablecoins is non-trivial," particularly for cryptocurrency capital market products where "position sizing and execution efficacy matters."

The research note clarifies that while Hyperliquid held a stablecoin ticker auction for its layer 1 blockchain (HyperEVM), its core perpetual futures product HyperCore still has USDC as the only approved stablecoin, suggesting any transition would be gradual rather than immediate.

In other recent news, Circle Internet Group has reported its first earnings as a public company, with a GAAP loss of $4.48 per share for the second quarter of 2025. This loss was mainly attributed to IPO-related stock-based compensation and the fair value marking of convertible securities. Despite this, Needham reiterated a Buy rating with a $250 price target, highlighting stronger-than-expected results in USDC on the platform and revenue from subscriptions and services. Conversely, JPMorgan raised its price target to $89 but maintained an Underweight rating, reflecting mixed sentiments in the analyst community.

In a strategic move, Circle has partnered with Finastra to integrate USDC settlement into cross-border payment flows, enhancing its payment infrastructure. Additionally, Circle has acquired Malachite from Informal Systems to support its upcoming Arc blockchain network, which is expected to launch in testnet later this year. Meanwhile, Compass Point lowered its price target to $96, maintaining a Sell rating amid competition concerns following Hyperliquid’s announcement to launch its own stablecoin. These developments indicate a dynamic period for Circle Internet Group, with significant partnerships and strategic acquisitions shaping its future trajectory.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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