Circle's IBM patent deal meaningful, Susquehanna says
CRCL•Circle disclosed the acquisition as shares fell
Circle disclosed the acquisition on Monday.
CRCL shares fell 4.38% to $62.54 in today's session.
Fourteen of 30 brokerages rate the stock "buy" or higher, 14 "hold" and 2 "sell or lower"; the median price target is $107.21, according to data compiled by LSEG.
Including session moves, the stock has fallen 21.2% this year.
Susquehanna calls IBM patent deal a strategic step for Circle
Brokerage Susquehanna says stablecoin giant Circle Internet Group's CRCL.N acquisition of IBM's IBM.N blockchain patent portfolio may be a meaningful strategic development as CRCL looks to commercialize its lead in USDC, the company's dollar-backed stablecoin.
IBM's blockchain patent portfolio comprises about 1,450 active patents, including supply-chain provenance and cryptographic transaction verification, the brokerage said.
Susquehanna said IBM's blockchain is built primarily for banks and large companies and its approach is a good fit for Circle's institutional blockchain Arc.
