Circle Internet Group Inc. (CRCL) saw its stock rally significantly on Tuesday as investors looked past a wider-than-expected quarterly loss, focusing instead on the company’s impressive revenue growth and the expanding circulation of its USDC stablecoin.
In its first quarterly update since its blockbuster initial public offering (IPO), Circle demonstrated strong underlying business momentum that resonated with Wall Street. The stock climbed 7% to $171.81 a share in early trading, a remarkable 106% increase from its first-day closing price of $83.23 on June 5.
Revenue Beats Expectations, Loss Driven by One-Time Charges
The market’s positive reaction was fueled by a revenue figure that surpassed analyst estimates. Circle reported second-quarter revenue of $658.1 million, a substantial 53% increase from the $430.03 million recorded in the same period last year. This figure comfortably beat the Wall Street consensus estimate of $645.7 million.
While the company posted a net loss of $482.1 million, or $4.48 per share, investors were quick to look deeper. The loss, which was larger than the 97 cents per share loss analysts had predicted, was primarily due to $591 million in one-time, non-cash charges related to its IPO. A significant portion of this, $424 million, was attributed to stock-based compensation tied to vesting conditions, a common occurrence after a company goes public. In the year-ago quarter, Circle had earned $32.92 million.
USDC Stablecoin: The Engine of Growth
A key driver of investor confidence is the explosive growth of Circle’s core product, the USDC stablecoin, a digital currency pegged one-to-one with the U.S. dollar. The company reported that USDC in circulation reached $61.3 billion as of June 30, a 90% surge from the previous year.
This powerful momentum has continued, with circulation increasing another 6.4% to $65.2 billion by August 10. This sustained growth signals rising adoption and trust in Circle’s ecosystem.
“We are seeing accelerating interest in building on stablecoins and partnering with Circle across every significant sector of the financial industry,” said Circle CEO Jeremy Allaire in a statement, highlighting the bullish outlook for the company.
Strategic Partnerships and Future Plans
Circle has been actively expanding its footprint and use cases. During the quarter, the company:
Debuted its Circle Payments Network, a product designed to help financial firms facilitate payments using stablecoins.
Forged key alliances with major players like payments giant Fiserv (FI), crypto-software firm Binance Holdings Ltd., and corporate payments company Corpay Inc. (CPAY).
Looking ahead, Circle announced plans for a test launch this fall of Arc, a new open layer-one blockchain. The company describes Arc as a foundational platform for capital markets, foreign exchange, and payments built to leverage the USDC stablecoin, signaling ambitious plans for future innovation and market expansion.
