Circle applies to issue 2 million Class A common shares, while selling shareholders will sell 8 million Class A common shares.

Interpretation: The 2 million shares represent the company's new issuance for fundraising (diluting existing shareholders), while the 8 million shares are for existing shareholders to cash out (not diluting but potentially affecting market sentiment). A total of 10 million shares will enter the market for circulation.

Among these, only 2 million shares will increase the company's total share capital, which will lead to dilution effects, especially when the issuance price is close to or below the current stock price, making it easy to suppress the stock price.

The other 8 million shares, while not increasing the share capital, indicate that major shareholders or early investors are cashing out, which can be interpreted as a lack of confidence in the company's future. Of course, it is normal for early investors to exit, but it will indeed lead to an increase in supply in the short term, increasing selling pressure, which will create downward pressure on the stock price.

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