In accordance with Odaily, the X Chinese community has sparked intense debate over whether Circle (NYSE: CRCL) is worth investing in, with opinions sharply divided. On one side, CRCL is seen as a valuable asset in the stablecoin sector with institutional advantages, while critics question the sustainability of its business model and cyclical risks. Despite a Q3 2025 report showing a 66% year-over-year revenue increase to $740 million and a net profit of $214 million, the stock fell 11.4% on the day of the release and dropped 20% in the following week. Key concerns include high distribution costs, operational expenses, and a large portion of profits from non-recurring investment gains. The debate also centers on whether CRCL is a bank or a financial infrastructure provider, with some comparing it to Amazon or JD.com, which initially operated at a loss to gain market share. Others warn of risks from interest rate declines and competition from traditional financial institutions. The discussion highlights structural disagreements about CRCL’s long-term potential and valuation logic.
Circle (CRCL) Faces Debate Over Valuation and Profitability Amid Strong Q3 Earnings
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