Circle Q2 2025 Net Loss $482 Million Amid 6.4% USDC Supply Rise

Circle released its Q2 2025 financial report, revealing a net loss of $482 million for the quarter, despite a significant increase in its USDC circulating supply. The stablecoin, designed to maintain a 1:1 peg with the U.S. dollar, saw its circulating supply reach 65.2 billion tokens by August 10, 2025, up 6.4% from 61.3 billion as of the end of Q1 2025 [1]. This represents a 90% year-over-year growth in the supply of USDC, highlighting continued demand for the asset in the digital economy.

The company reported total revenue and reserve income of $658 million, a 53% increase year-over-year, reflecting its growing role in global financial infrastructure. However, the net loss was largely driven by non-cash expenses tied to its initial public offering (IPO). These expenses totaled $591 million and included $424 million in stock-based compensation recognized as the IPO met attribution conditions, as well as a $167 million increase in the fair value of convertible bonds due to stock price appreciation [1].

Despite the net loss, Circle’s adjusted EBITDA rose by 52% year-on-year to $126 million, indicating continued operational efficiency and strong underlying performance. The increase in EBITDA underscores the company's ability to generate profitability from core operations, even amid significant one-time charges.

The sharp contrast between the robust growth in USDC and the net loss highlights the financial complexities of scaling a stablecoin issuer in a rapidly evolving market. While the company is clearly capturing value through expanding supply and reserves, it must also navigate the high costs associated with public market readiness and capital structure adjustments.

The report comes at a pivotal time for Circle, as the stablecoin market remains a critical pillar of crypto infrastructure. With USDC’s supply continuing to climb, the company faces increasing expectations for profitability and long-term sustainability amid growing regulatory and competitive pressures.

Source: [1] Circle Releases Q2 2025 Financial Report: Net Loss of $482 Million, USDC Circulating Supply Reaches 65.2 Billion as of August 10. (https://www.theblockbeats.info/en/flash/307021)