Circle's financial report has revealed details of its partnership with Coinbase, including millions paid for USDC stablecoin distribution.
Circle's Financial Performance
Circle reported $1.67 billion in revenue for 2024, surpassing its 2023 and 2022 figures of $1.4 billion and $772 million, respectively. However, EBITDA declined by 29% to $285 million, and net income fell by 42% to $155.67 million. A significant portion of expenses was attributed to distribution, amounting to $1.01 billion in 2024, with $908 million going to Coinbase.
Criticism from Analysts
Analysts expressed concerns over high distribution costs and Circle's reliance on Coinbase. The substantial USDC turnover might be costly for the company. There were also notes on expenses for compensation and high gross creation and redemption numbers for USDC. Farside Investors mentioned that these gross figures are much higher than expected.
Prospects and New Partnerships
Despite the challenges, Circle is seeking new partnership opportunities with global partners like Nubank, Mercado Libre, and Grab. VanEck Ventures partner Wyatt Lonergan believes that diversifying partnerships can help Circle navigate its current challenges and strengthen its market position.
Despite challenging financial indicators, Circle is actively pursuing new collaboration opportunities to enhance its market resilience.
