Circle stock sinks 10% amid analyst downgrade, Drift Protocol probe
Why it matters: Circle’s market cap lost roughly $1.2 billion as shares fell 9.9%, hurting shareholders.
- Circle Internet Group (CI) shares fell 9.9% to $85.10 after Compass Point downgraded the stock to sell with a $77 price target.
- Compass Point cited regulatory stalls and the Drift exploit fallout as reasons to downgrade Circle, predicting about 9% further downside.
- Bernstein pushed back, saying Circle’s core business remains strong, highlighting growing USDC usage and robust reserve earnings.
- Drift Protocol $280 million hack moved stolen assets into USDC, prompting a potential class‑action outreach by Gibbs Mura and sparking broader crypto‑market jitters.
Circle’s stock slid nearly 10% after Compass Point cut its rating and a $280 million Drift Protocol exploit raised counter‑party risk concerns. While the downgrade cites regulatory uncertainty, Bernstein argues USDC adoption and reserve income keep the business solid.
