How Circle (CRCL) Might Become More Profitable Than Strategy: BitMEX Research

BitMEX Research has put forward a theory in which the USDC issuer Circle (CRCL) racks in more profits than Michael Saylor’s Strategy. The research firm predicts this could happen through the stablecoin firm issuing more shares and becoming a US Treasury company.

How Circle (CRCL) Might Beat Strategy

In an X post, BitMEX Research stated that the USDC issuer could become a US Treasury company if the CRCL stock increases by another 100%. Essentially, the research firm predicts that the firm may begin selling its shares to purchase more US treasuries.

BitMEX claimed that this would give Circle an “infinite money glitch,” which, unlike MSTR, would also be risk-free.  Saylor’s Strategy is known for issuing its shares to shore up its Bitcoin Treasury.

Strategy recently upsized its STRD IPO from $250 million to $1 billion to buy more Bitcoin. However, BitMEX Research believes that Circle becoming a US Treasury company would help the company become profitable than Strategy since investments in US treasuries are likely less risky than Bitcoin.

According to an April examination report, the stablecoin issuer holds over $24 billion worth of US Treasury securities. Meanwhile, A Reuters report also noted that Tether and the USDC issuer both hold around $166 billion in US treasuries.

Circle, which went public last week, recorded a successful initial public offering, raising around $1.1 billion in the process. The CRCL stock has also surged over 300% times the IPO price of $31. Nasdaq data shows that CRCL is up over 3% today, trading above $110 and hitting a $24 billion market cap in the process.

With this feat, BitMEX Research noted that Circle’s market cap has now reached [almost] 50% of the USDC in circulation. CoinMarketCap data shows that there is 61 billion USDC in circulation, valued at $61 billion.

Meanwhile, on the other hand, Jeff Park, Bitwise’s Head of Alpha Strategies, believes that Circle’s IPO has shown that a company like Strategy is still cheap. In an X post, he stated that Circl’s mNAV is starting to make Bitcoin treasury companies “look really cheap.”