Circle's stock has experienced a significant decline, closing at $69.72 on November 19, just above its June IPO price of $69, but down 77% from its summer high of $298.99. The USDC stablecoin issuer initially saw its shares surge 124% from the $31 offering price at its IPO, raising $1.1 billion. Despite reporting Q3 revenue of $740 million and a net profit of $214 million, both surpassing expectations, the stock continued to fall, reaching $66.38 on November 20.
Management has expressed concerns that potential Federal Reserve rate cuts could impact reserve yields, which have already decreased to 4.15%. In response to the stock's decline, Ark Invest has acquired $3.1 million worth of Circle shares, indicating a strategic move based on long-term optimism despite current market pressures.
Circle's Stock Plummets 77% from Summer Peak Amid Fed Rate Concerns
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