Circle Launches Secondary Share Offering Amid Rising Stablecoin Growth and Earnings Surge

Circle Internet Group Inc. has filed a registration statement with the U.S. Securities and Exchange Commission (SEC) for a new offering that includes the issuance of 2 million Class A shares by the company and the sale of 8 million Class A shares by existing shareholders [1]. This secondary offering comes in the wake of the company’s June 2025 initial public offering (IPO), which involved the sale of 19.9 million newly issued Class A shares at $31 per share, generating $583 million in net proceeds [2]. The latest offering, if completed, will increase the total number of Class A shares outstanding and potentially influence the company’s capital structure and market dynamics.

The offering is unfolding alongside the release of the company’s second-quarter 2025 financial results, which showed significant growth in the circulation of its USDC stablecoin. As of August 10, 2025, the total value of USDC in circulation had reached $65.2 billion, up 90% from the previous year and an additional 6.4% since the end of the second quarter [2]. For the same quarter, the company reported total revenue and reserve income of $658 million, a 53% year-over-year increase, and Adjusted EBITDA of $126 million, up 52%. Despite these gains, the company also reported a net loss of $482 million, driven largely by $424 million in non-cash stock-based compensation and a $167 million increase in the fair value of convertible debt [2].

The 8 million shares being sold by existing shareholders are a notable aspect of the offering and may reflect a strategy to monetize early ownership stakes or reallocate capital following the company’s public listing [1]. The distinction between the 2 million shares issued by the company and the 8 million shares offered by shareholders is critical, as the former will raise capital for corporate purposes while the latter will not. This structure is typical of secondary offerings and often indicates a balance between supporting corporate objectives and allowing early investors to realize liquidity.

The timing of the offering suggests that Circle is seeking to leverage its recent momentum. The company has been expanding its footprint in the digital asset and payments space through initiatives such as the launch of the Circle Payments Network in May 2025 and strategic partnerships with Binance, Corpay, FIS, and OKX [2]. It has also introduced Arc, an open Layer-1 blockchain designed for stablecoin finance, reinforcing its broader vision of creating a full-stack financial infrastructure for the internet [2].

The offering, however, also raises potential concerns about the dilution of existing shareholders and the market’s perception of the company’s capital-raising approach. A portion of the IPO proceeds—specifically 2.68 million shares—was allocated to the Circle Foundation for philanthropic purposes, aligning with the company’s recent membership in the Pledge 1% initiative [2]. The inclusion of such shares in a secondary offering could affect investor confidence if not clearly communicated.

No details regarding pricing, underwriters, or the intended use of proceeds from the 2 million new shares have been provided in the SEC filing [1]. Further disclosures from the company may be necessary as the offering moves forward. Additionally, insider activity, including the sale of 300,000 shares by Nikhil Chandhok, may influence investor sentiment and market dynamics [3].

The proposed offering reflects Circle’s strategic evolution in the digital finance sector. The company’s first quarter as a public entity has demonstrated both growth—evidenced by rising stablecoin circulation and revenue—and challenges, particularly from large non-cash expenses. As it continues to build its vision of a new financial infrastructure, the market will be closely watching to see how the new capital structure supports its long-term ambitions [2].

Source:

[1] Binance

https://www.binance.com/en/square/post/28231482303201

[2] Circle

https://www.circle.com/pressroom/circle-reports-second-quarter-2025-results

[3] MarketBeat

https://www.marketbeat.com/instant-alerts/circle-internet-group-nysecrcl-shares-up-43-heres-why-2025-08-08/