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Investor from an investment company: The interest rate cut is a disaster for Circle, and revenue and profit will decline significantly.
Omar, an investor from an investment company, expressed the view that interest rate cuts are undoubtedly frightening for companies sensitive to interest rates like Circle. A 100 basis point cut would reduce Circle's total revenue by $618 million (-23%), decrease gross profit by $303 million (-30%), and lower the profit margin by 3.3 percentage points.