Chatbots Would Rather You Skip USDC, Mizuho Finds, Cutting Circle Target to $43
By Unchained
AI summary of the source article
Mizuho Securities lowered its price target for Circle to $43, warning that AI assistants steering users toward higher-yielding products could reduce USDC's market value and cut Circle's medium-term reserve revenue by 10% to 20%.
Why it matters
Interest on the cash and Treasuries backing USDC makes up nearly all of Circle’s sales.
Key facts
- Mizuho trimmed its Circle Internet Group price target by $2 to $43, reiterating an Underperform rating.
- Mizuho estimates AI yield-seeking assistants could reduce Circle's reserve revenue by 10% to 20% and erase $4 billion to $9 billion of USDC's market value.
- Interest on cash and Treasuries backing USDC generated $668 million in Q2, representing roughly 95% of Circle's $701 million total revenue and reserve income.
Source excerpt · Unchained
In Mizuho's chatbot test, AI agents mostly recommended FDIC-insured accounts rather than USDC, and the bank's new $43 target keeps it bearish on Circle shares. The post Chatbots Would Rather You Skip USDC, Mizuho Finds, Cutting Circle Target to $43 appeared first on Unchained .