Bitcoin crashes below USD 90,000, but the Nvidia party continues! Circle, RE Royalties, and Alibaba in focus

RE Royalties – Sustainable returns and climate protection combined

The market for sustainable financing has been showing strong growth for several years. In 2024, the global volume of green bonds reached a new record high of around USD 475 billion, while the total volume of sustainable bonds, including social and ESG-compliant bonds, exceeded the USD 800 billion mark. Europe is at the forefront of this trend, benefiting from consistent regulation and the established EU taxonomy.

RE Royalties Ltd., a Canadian financing specialist, has established itself as an innovative partner for renewable energy projects. The Company uses a licensing and royalty model traditionally known from the commodities industry and successfully applies it to solar, wind, and hydroelectric power projects as well as energy storage projects. Instead of investing in and operating the plants itself, RE Royalties provides capital and, in return, receives long-term contractually secured revenue shares, enabling stable and recurring cash flows without diluting the project owners. These activities have resulted in a diversified portfolio of over 130 projects with an investment volume of more than CAD 80 million, primarily in North America, but increasingly also in Europe, Asia, and Africa.

For investors, RE Royalties offers an attractive dividend yield of currently around 14%, based on quarterly distributions of CAD 0.01 per share and a current share price of around CAD 0.27, in addition to its innovative FinTech presence. This yield is exceptionally high in the renewable energy sector and results from long-term power purchase agreements with terms of 20 to 40 years. In addition, the Company has issued CAD 6.2 million in green bonds in 2024, the proceeds of which will be used exclusively to finance sustainable projects in accordance with international standards. RE Royalties thus combines financial strength with environmental and social responsibility. Investors receive a "green mix" with character and, on top of that, decent distributions. The current share price of CAD 0.27 is attractive for new investments or additions for risk-conscious investors.

CEO Bernard Tan explains how he is turning the tables in the world of finance in an interview with Lyndsay Malchuk.

https://www.youtube.com/watch?v=sKWA0kb1A_s

Circle Internet – Stablecoins as the foundation of a new financial infrastructure

Circle Internet Group is a company specializing in FinTech that has become known primarily for issuing stablecoins such as the USDC. The financial highlight is Trump's requirement that such issuances be backed by US government bonds. For every stablecoin introduced on the crypto exchange, Circle must subscribe to the same amount of US bonds. Investors do not see the interest due on these bonds, as it is paid out to the bondholder. With long-term US interest rates at 4.7%, this is a very lucrative business, as this interest income represents an infinitely scalable business model. At the same time, the Company is investing heavily in an infrastructure platform: with API services, blockchain payment systems, on-chain treasury tools, and foreign exchange processing via smart contracts, Circle aims to serve as the technological basis for programmable finance. The regulatory setup is broad: Circle holds licenses in the US, the EU, the UK, Singapore, and other markets. In recent years, Circle has also established partnerships with large companies, including banks, payment service providers, and digital asset managers, to further anchor its ecosystem.

Analysts see considerable growth potential in this mix of interest-bearing business and digital platform model, as stablecoins are also becoming increasingly widespread. The USDC supply in circulation reached USD 73.7 billion at the end of the quarter, a growth of 108% compared to the same period last year. 12 out of 23 analysts at LSEG see upside potential to USD 151.70. As a reminder, the stock is currently trading at a depressed USD 69.50. Buy!

Alibaba – On the road to success with cloud and e-commerce

Alibaba shares have weathered the recent storm on the NASDAQ almost unscathed. The Chinese group is one of the world's leading technology companies, focusing on e-commerce, cloud computing, digital payment services, and logistics platforms. Through subsidiaries such as Alibaba.com, Taobao, and Tmall, Alibaba brings together producers, retailers, and end customers through B2B, B2C, and C2C marketplaces and also operates its own supermarkets. Payment services such as Alipay and a modern cloud infrastructure are also offered. The business model is based on building a comprehensive digital ecosystem that offers customers low prices, a wide range of products, and reliable logistics. **With strong brands, an extensive dealer network, and innovative technology, Alibaba is the clear market leader in its home market of China and is expanding internationally with a focus on regulatory intervention, having improved its cooperation with authorities and consumer protection.

Over the past three months, Alibaba has stabilized its operations and recovered significantly from a low sell-off level of USD 75. By September, the share price had even doubled to over USD 150, but the high volatility of the NASDAQ had led to some profit-taking. With a market capitalization of over EUR 300 billion, Alibaba is a major Chinese stock that has won the hearts of international investors with consistent growth of over 12% per annum. The cloud business continues to record solid growth, and the latest quarterly figures were better than expected. The LSEG platform now has 38 "Buy" recommendations with a mixed target price of USD 194.80. With a 2027 P/E ratio of 6.8, the stock is still a bargain at USD 158.80.

Green Finance is an alternative form of financing that is becoming increasingly popular among banks and private service providers. This is because innovative approaches can be used to combine traditional banking with modern forms of growth participation. RE Royalties closes a crucial gap here by generating recurring royalty income from renewable projects while offering investors predictable distributions, a niche model with potential for significant valuation increases. Circle Internet is becoming more interesting every day, and Alibaba is likely to perform well for years to come thanks to its cloud division.