Circle’s Stock Rises 5% After Strong Q2 Results
Circle Internet Financial, the company behind the USDC stablecoin, saw its stock (CRCL) jump 5% to around $164 on Tuesday after reporting strong second-quarter earnings. The boost came shortly after its recent IPO and the passing of the new GENIUS Act, a law aimed at regulating dollar-backed cryptocurrencies.
USDC Use Surges 90%
Circle’s Chief Financial Officer, Jeremy Fox-Geen, said interest from big institutions has been growing fast since the IPO and the new law. Three weeks ago, President Donald Trump signed the country’s first crypto law, encouraging banks and companies to explore stablecoins for faster and cheaper transactions.
As of June 30, USDC circulation was up 90% compared to last year, and Circle expects it to keep growing about 40% each year. USDC is being used more not just for online payments but also for international money transfers between people and businesses, according to CEO Jeremy Allaire.
Revenue Up, Loss Due to IPO Costs
Circle’s revenue rose 53% year-over-year to $658 million, beating analyst forecasts of $644.7 million. Most of this came from interest earned on cash reserves and short-term investments backing USDC, along with subscription and service fees from its platform.
However, the company posted a net loss of $482 million, mainly due to non-cash costs related to its IPO.
New Blockchain Coming
This fall, Circle plans to launch Arc, a public blockchain designed for stablecoin transactions, to strengthen its digital payment technology.
David Bartosiak from Zacks Investment Research said Circle aims to become “the pillar of stablecoins in the US,” thanks to its strong reputation. Despite its growth, CEO Allaire said the company will be careful with acquisitions, avoiding big and complex deals for now.
