Analyst Says Circle’s Stock Is “Risk‑Free” and Outshines MicroStrategy

Date: June 11, 2025
Author: Unnamed Analyst at BitMEX Research (via Yahoo Finance)

📰 Summary

Following Circle's recent IPO, an analyst at BitMEX Research declares the company’s stock as “risk-free,” citing its unique treasury-backed model and high potential, stating it's a safer and more profitable option than MicroStrategy (MSTR) finance.yahoo.com+6finance.yahoo.com+6finance.yahoo.com+6.

Key Takeaways

Stablecoin Treasury Model: Circle issues USDC, fully collateralized by cash and short‑term U.S. Treasuries, providing a steady source of treasury yield income—viewed as inherently less risky than bitcoin‑backed models like MicroStrategy .

Post‑IPO Momentum: Circle stock surged approximately 7% on the third consecutive day of gains since its “blockbuster” IPO aol.com+9finance.yahoo.com+9finance.yahoo.com+9.

Strategic Comparison: BitMEX Research notes that the combination of steady yield from treasuries and the expanding stablecoin adoption positions Circle's stock as more favorable compared to MicroStrategy, which is primarily exposed to bitcoin price swings sg.finance.yahoo.com+5finance.yahoo.com+5finance.yahoo.com+5.

Investment Context

Interest Rate Dependency: Circle’s profitability is closely tied to short-term U.S. Treasury yields—if rates decline, yield income may slow aol.com+10sg.finance.yahoo.com+10finance.yahoo.com+10.

MicroStrategy's Volatility Contrast: MicroStrategy (MSTR) remains highly volatile, driven by bitcoin exposure. Circle’s treasury-backed reserves provide greater stability finance.yahoo.com+1finance.yahoo.com+1.

Current Market Mood: Investors seem bullish—Circle continues to climb in the days following its IPO, reflecting confidence in its business model finance.yahoo.com.

Conclusion

BitMEX Research characterizes Circle's NYSE‑listed shares as "risk‑free" relative to peers like MicroStrategy, citing its treasury-backed stablecoin model and post-IPO performance. However, this positioning depends on continued strength in treasury yields and the broader stablecoin sector.