According to Odaily Planet Daily, Dragonfly investor Omar Yu X commented on the interest rate cut, stating, "Rate cuts are catastrophic for interest-sensitive companies like Circle: a 100 basis point rate cut would result in a $618 million (-23%) reduction in annualized total revenue, a $303 million (-30%) reduction in gross profit, and a 3.3 percentage point decline in profit margin. This would push the company's valuation, already high at 42x EV/annualized gross profit, further up to 60.4x (a premium of approximately 50%). To offset this impact, USDC circulation would need to increase by $28 billion (equivalent to 44% of the current $64 billion) to maintain the current status quo. With the rate cut now a foregone conclusion, this explains yesterday's massive stock sell-off of approximately $1.5 billion and also highlights Circle's eagerness to advance new products (CPN and Circle Chain) that can monetize transaction flows."