Circle Shares Jump 11% on Strong USDC Growth and Earnings Debut

Circle Internet Financial’s shares surged 11% in pre-market trading on Tuesday following the company’s first public earnings report as a newly listed firm. The report highlighted a 90% growth in its USDC stablecoin supply to $61.3 billion, despite a $482 million net loss, largely attributed to non-cash IPO-related charges [1].

The stablecoin issuer reported total revenue and reserve income of $658 million for the quarter, marking a 53% year-over-year increase. While the company experienced a net loss, it attributed this primarily to $591 million in non-cash charges from its June IPO, including $424 million in stock-based compensation and $167 million in convertible debt fair value increases [1].

USDC’s total supply reached $65.2 billion by August 10, 2025, with a 6.4% increase from quarter-end, further solidifying its 28% market share in the stablecoin space. The average USDC circulation for the quarter hit $61.0 billion, reflecting an 86% year-over-year surge driven by strong institutional adoption [1].

Operational metrics underscored the company’s growth, with meaningful wallet addresses rising 68% year-over-year to 5.7 million users. Reserve income, the company’s primary revenue driver, climbed 50% to $634 million, while other revenue streams, such as subscription services, jumped 252% to $24 million [1].

Despite the net loss, adjusted EBITDA rose 52% to $126 million, with a 50% margin, reflecting strong operational leverage in the core business. The company’s balance sheet also expanded significantly, with total assets reaching $64.2 billion, driven by segregated cash backing stablecoin holders [1].

Circle minted $42.2 billion in new USDC during the quarter and redeemed $40.8 billion, demonstrating strong net positive demand for the stablecoin. Strategic partnerships with platforms like Binance, Corpay, FIS, Fiserv, and OKX now reach over 60 million potential users globally [1].

The company also announced the launch of Arc, an enterprise-grade Layer-1 blockchain tailored for stablecoin finance using USDC as native gas. The platform is set to debut a public testnet in the fall and offers sub-second settlement times, EVM compatibility, and integrated foreign exchange functionality [1].

Institutional adoption of stablecoin technology continues to accelerate, with Circle’s growth outpacing traditional payment volumes. The recent passage of the GENIUS Act established a federal framework for payment stablecoins, aligning with the company’s existing compliance practices and reinforcing regulatory clarity [1].

Despite these developments, competition is intensifying, with yield-bearing digital assets offering additional returns beyond stability. While some major investment firms have sold shares post-IPO, others remain supportive. Wall Street analysts have generally responded positively, though some institutions like JPMorgan and Goldman Sachs have raised valuation concerns following the stock’s surge [1].

Circle is also pursuing a major post-IPO expansion by filing to become a national trust bank in the U.S., a move aimed at strengthening its presence in the regulated digital finance sector [1].

Source:

[1] Circle’s First Public Earnings Send Shares Soaring 11% on USDC Demand Surge (https://cryptonews.com/news/circle-stock-jumps-11-pre-market-after-first-public-earnings-show-usdc-at-61-3b-with-90-growth/)