# Circle Stock Tanks 12.9% — But Here's Why You Shouldn't Panic

Circle Internet Group (CRCL) got dragged down this week as Bitcoin nosedived to $85k, down 20% in the last month. Thing is, this selloff might be exactly the wrong reason to avoid the stock.

Here's the reality: Circle isn't a Bitcoin bet. It's a stablecoin issuer — think of it like a bank that issues USDC (pegged 1:1 to the dollar). In Q3, USDC in circulation surged 108% YoY to $73.7 billion.

**The numbers are actually crazy:**
- Revenue (less distribution costs) jumped 55% to $292M
- Already profitable: $153M net income last quarter alone
- Annualized earnings run rate: ~$600M+
- Stock trades at just 28x PE on that earnings power

That's genuinely cheap for a company growing 55% YoY. Circle makes money like a bank — holding customer dollars and parking them in Treasury bonds.

**The catch:** Crypto regulation is still a wildcard. If the political wind shifts, stablecoin issuers face real headwinds. But with the current pro-crypto government stance, Circle looks like it's pricing in way too much downside.

Price dip or trap? The data suggests opportunity, but regulatory risk is real.