Circle Shares Plunge 6.16% on $2.8B After-Hours Volume Amid Secondary Offering Fears

On August 13, 2025, Circle (CRCL) fell 6.16% to $154 in after-hours trading, with a trading volume of $2.8 billion, marking a 51.24% decline from the previous day. The drop followed the company’s announcement of a secondary offering of 10 million Class A shares—2 million from Circle and 8 million from existing shareholders. The offering includes a greenshoe option for an additional 1.5 million shares, potentially amplifying dilution for current holders.

The move comes amid mixed financial results for the stablecoin issuer. Circle reported a $428 million net loss in Q2 2025, driven by IPO-related charges, despite a 53% year-over-year revenue increase to $658 million. The company’s USDC stablecoin saw a 90% year-on-year rise in circulation to $61.3 billion by early August, with CEO Jeremy Allaire highlighting expansion in cross-border settlements and the upcoming launch of the Arc blockchain network.

Analysts noted that the secondary offering, which accounts for 80% of the shares from existing stakeholders, signals potential profit-taking by insiders. While shares remain up 450% from their June IPO price of $31, they have retreated nearly 50% from the $299 peak. The offering’s timing—just two months post-IPO—has raised concerns about short-term dilution, overshadowing the company’s strong revenue growth and strategic initiatives in stablecoin infrastructure.

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