Mizuho Downgrades Circle to Underperform, Citing OpenUSD Competition May Compress Margins

Odaily Planet Daily News: Mizuho has downgraded Circle from Neutral to Underperform, lowering its price target from $85 to $50, citing rising competitive pressure from OpenUSD. The bank stated that the pass-through model of OpenUSD could force Circle to share more reserve income with distribution partners, thereby compressing margins. Mizuho has lowered its forecast for Circle's adjusted EBITDA in 2027 to $699 million, approximately 25% below the Wall Street consensus estimate, and warned that the upcoming renewal of the Coinbase revenue sharing agreement could add further pressure. (CoinDesk)