H&H International Investment LLC, the family wealth management firm of well-known investor Duan Yongping, recently submitted its first quarter 13F holdings report to the U.S. SEC as of March 31, 2026. According to the report, the total market value of Duan Yongping’s investment portfolio has increased significantly from $17.49B in the previous quarter to $200.04B. In addition to continuing to heavily invest in Apple (AAPL), Berkshire Hathaway (BRK.B), and Nvidia (NVDA), stablecoin giant Circle (NYSE: CRCL) has attracted attention. Although the initial investment of $19.08M accounts for only 0.2% of Duan Yongping’s vast portfolio, this signal is highly symbolic.
As we all know, Duan Yongping is one of the most successful entrepreneurial investors in China, and also one of the very few Chinese investors who has truly practiced Buffett-style value investing for a long time and achieved great success. However, for a long time, Duan Yongping has always been cautious about blockchain and Web3. In the past few years, he has rarely publicly participated in the Web3 craze, nor has he frequently discussed concepts such as NFTs, DeFi, or public chains like some technology investors. During the several rounds of Bitcoin’s sharp rise and fall cycles, Duan Yongping has never shown obvious interest.
This is not surprising. Duan Yongping’s core investment framework is essentially closer to the Buffett system: emphasizing long-term cash flow, understandable business models, brand and channel moats, and management quality. He especially favors companies with strong consumer mindshare, high free cash flow, and long-term compounding capabilities. However, most crypto projects in the past have found it difficult to meet these standards. Many Web3 projects are highly dependent on token price-driven models, have fragile business models, and unsustainable cash flows; the industry has also long been accompanied by regulatory uncertainty, governance chaos, and cyclical bubbles. These characteristics are almost inherently in conflict with the “certainty” emphasized by traditional value investors. But Circle is an exception.
Circle’s core business is not “currency speculation”, but issuing the stablecoin USDC and earning interest income through U.S. Treasury bonds and other reserve assets. Its profit model is actually closer to money market funds, payment clearing platforms, and even “digital dollar banks”. This also means that its source of income is highly predictable. Circle’s latest financial report for the first quarter of 2026 shows that total revenue in Q1 reached $694.00M, a year-on-year increase of 20%, of which 94% came from reserve income; adjusted EBITDA reached $151.00M, a year-on-year increase of 24%. More importantly, its core business indicators are still expanding rapidly: USDC circulation reached $77.00B, a year-on-year increase of 28%; USDC on-chain transaction volume reached $21.50T, a year-on-year surge of 263%.
At the end of April, Circle also announced that its Layer 1 network Arc completed a token pre-sale financing of $222.00M, with a valuation of $3.00B. a16z led the investment with $75.00M, and participating investors included BlackRock, Apollo Funds, Intercontinental Exchange (ICE), Standard Chartered Ventures, ARK Invest, and Bullish, among more than a dozen institutions. The expansion of the public chain network and the issuance of native tokens have further opened up the ceiling for Circle’s business, and its stock price has risen accordingly. Entering May, Circle’s stock price has risen nearly 3 times from its low point of the year ($50.00), once breaking through $140.00, and has now slightly fallen back to $111.00.
Today, more and more crypto companies are trying to IPO. From trading platforms and stablecoin issuers to on-chain payment and custody infrastructure, a large number of crypto companies are actively entering the traditional capital market, hoping to obtain more stable financing channels, a wider range of institutional shareholders, and stronger regulatory legitimacy. At the same time, traditional financial giants are also entering the crypto field at an unprecedented speed. Whether it is BlackRock promoting Bitcoin ETFs or traditional banks exploring stablecoin settlement and on-chain asset custody, it essentially illustrates one thing: the crypto industry is no longer just an independent “alternative market”, but is beginning to deeply integrate with the global financial system.
In this process, stablecoin companies represented by Circle are becoming the easiest bridge for traditional capital to understand and accept. The significance of Duan Yongping’s purchase of Circle this time lies precisely in this. This does not necessarily mean that he is fully bullish on Web3, nor does it mean that the value investment system has begun to embrace all crypto assets. But at least it shows that stablecoins and the on-chain dollar system have begun to enter the “circle of competence” of some top traditional investors. From a broader perspective, Circle is just a microcosm of the crypto industry being accepted by traditional mainstream capital.
[ChainCatcher]
Duan Yongping’s Circle Investment: A Watershed Moment for Value Investing in Crypto
The recent revelation that Duan Yongping, one of China’s most successful value investors and a disciple of Warren Buffett’s principles, has taken a stake in Circle represents more than just another institutional entry into crypto—it signals a fundamental shift in how traditional value investors perceive the asset class. While the $19.08M investment constitutes merely 0.2% of his $200B portfolio, its symbolic importance cannot be overstated.
The Significance of a Value Investor’s Embrace
Duan Yongping’s investment philosophy has long centered on sustainable cash flows, understandable business models, and durable competitive moats—characteristics largely absent in most crypto ventures during Bitcoin’s earlier cycles. His absence from the Web3 frenzy wasn’t merely caution; it reflected a fundamental misalignment between traditional value metrics and crypto’s speculative, token-driven nature.
Circle’s appeal, however, lies in its alignment with these very principles. Unlike most crypto projects, Circle generates revenue through stablecoin issuance and U.S. Treasury reserve yields—a model more akin to a money market fund or digital bank than a typical crypto venture. This predictability is reflected in its financial performance: Q1 2026 revenue of $694M (20% YoY growth), adjusted EBITDA of $151M (24% YoY), and $77B in USDC circulation (28% YoY growth).
Why Circle Represents a Different Crypto Investment Paradigm
Circle’s business model offers several characteristics that should resonate with value investors:
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Regulatory Clarity: As a publicly traded entity (NYSE: CRCL) with established banking partnerships, Circle navigates regulatory frameworks more effectively than most crypto projects.
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Asset-Backed Operations: USDC reserves are fully transparent and backed by highly liquid U.S. Treasuries, providing a level of safety unprecedented in crypto.
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Real Utility: The $21.5T in on-chain transaction volume demonstrates genuine payment and settlement utility beyond speculative trading.
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Predictable Revenue: With 94% of revenue coming from reserve assets, Circle’s income stream correlates more with interest rates than crypto market volatility.
This model effectively bridges the gap between traditional finance and crypto, making it the logical entry point for conservative investors like Duan.
Market Implications and Token Price Impact
The immediate market reaction has been evident in Circle’s stock price, which has nearly tripled from its 2026 low of $50 to peak above $140 before settling around $111. However, the broader implications extend beyond a single stock:
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Stablecoin Premium: The endorsement validates the stablecoin sector, potentially benefiting USDC and other regulated stablecoins.
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Infrastructure Focus: This shift highlights growing institutional preference for crypto infrastructure over speculative tokens.
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Regulatory Pathway: Circle’s success as a public company provides a template for other crypto projects seeking traditional market listings.
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Capital Allocation: We may see similar value investors allocating capital to crypto projects with business models resembling traditional financial services.
Opportunities for Savvy Crypto Investors
For experienced investors, Duan’s entry creates several strategic opportunities:
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Value-Inflected Crypto Projects: Projects combining real utility, regulatory compliance, and sustainable business models may attract similar institutional attention.
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Infrastructure Tokens: Layer 1 solutions like Circle’s Arc (which recently raised $222M at a $3B valuation) could benefit from this broader trend.
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Traditional Finance Integration: Companies facilitating the bridge between TradFi and crypto, such as custodians and settlement providers, may see increased demand.
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Stablecoin Ecosystem Expansion: The growing acceptance of stablecoins could spur innovation in DeFi applications built around these stable assets.
Risks and Caveats
Despite the positive narrative, several risks remain:
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Regulatory Overhang: The stablecoin sector faces ongoing scrutiny that could materially impact business models.
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Interest Rate Sensitivity: Circle’s profitability is directly tied to interest rate environments, which may not remain favorable indefinitely.
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Market Misinterpretation: This single investment shouldn’t be viewed as a blanket endorsement of all crypto assets.
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Valuation Concerns: Circle’s stock price appreciation has been substantial, and current valuations may already factor in significant growth.
Conclusion: A New Era of Crypto Adoption
Duan Yongping’s investment in Circle represents a pivotal moment in crypto’s evolution from speculative asset to legitimate financial infrastructure. It suggests that the most successful path forward for crypto may not be through disruption of traditional finance, but rather through integration and complementarity.
For investors, this signals a maturing market where business fundamentals and regulatory compliance are increasingly valued over pure speculation. While this doesn’t eliminate crypto’s volatility or risk profile, it does expand the universe of investable projects to include those that might have previously been dismissed as incompatible with value investing principles.
As traditional capital continues to flow into crypto infrastructure, we may be witnessing the early stages of a multi-year trend that will fundamentally reshape the industry’s relationship with mainstream finance.