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Mizuho Securities: Coinbase's Q2 earnings indicate that Circle's USDC profitability may continue to decline.
PANews, August 2nd news, according to The Block report, after Coinbase released its second-quarter financial report, Japanese Mizuho Securities analysts reiterated their view that the stock price of USDC issuer Circle will ultimately fall. This is because they believe that due to rising distribution costs, the profit margins of this recently listed stablecoin issuer may continue to decline. Analysts estimate that Circle earned approximately $625 million in total interest income from USDC reserves in the second quarter, of which $332.5 million was paid to Coinbase. Mizuho analysts wrote in a report to clients: "Given that Circle is expanding distribution partnerships beyond Coinbase, this could mean that as spending increases from other distribution partners (such as Binance), Circle's net reserve income margin will face further pressure."