H.C.
Wainwright analyst Mike Colonnese upgraded Circle Internet Group (NYSE: CRCL) from Neutral to Buy on May 18, 2026.
The investment firm raised its price target by 76 percent from $85 to $150.
Capital Raise and Network Valuation
The upgrade followed Circle's disclosure of a $222 million capital raise for its Arc Layer 1 blockchain network.
The announcement was made during a May 11 earnings call.
Chief Financial Officer Jeremy Fox-Green stated that the presale, led by venture capital firm a16z, was executed at a $3 billion network valuation.
Colonnese noted that this initial valuation appears undervalued compared to similar blockchain networks.
Stablecoin Market Position
Market data from Coingecko showed the market capitalization of Circle's USDC stablecoin reached $76.9 billion by May 18.
The company's core stablecoin operations are projected to stabilize further due to persistent inflation and elevated energy prices.
These factors make Federal Reserve rate cuts unlikely in 2026.
Additional growth drivers include upcoming product rollouts like the Circle Agent Stack and increased domestic regulatory clarity.
The Senate Banking Committee passed the CLARITY Act in a 15-9 vote on May 14.
The legislation introduces bipartisan language regarding stablecoin yields.
Bernstein analysts noted that the law favors Circle by prohibiting issuers from paying interest on passive stablecoin balances.
Circle delivers rewards through distribution agreements with partners like Coinbase rather than offering passive yield directly.
This protects its existing operational model.
At the time of reporting, Circle shares traded 4.93 percent lower at $108.38.
However, the company's year-to-date returns maintained a 36.91 percent gain.
