Circle faces financial challenges due to the potential impact of upcoming interest rate cuts, according to analyst Omar. A 100 basis point reduction in interest rates could lead to a significant decline in Circle’s revenue, with a predicted drop of $618 million (23% reduction). The company’s gross profit would also suffer, falling by $303 million (30% reduction), further impacting profitability. This scenario would require Circle’s stock valuation to rise drastically, reaching 60.4 times its EV/rr gross profit – a 50% premium. To mitigate these challenges, Circle may need to significantly increase the supply of USDC by $28 billion, which is approximately 44% of its current holdings, to maintain financial neutrality.