Circle shares rise as second-quarter revenue jumps 53%

KEY POINTS

• The stablecoin issuer posted a 53% increase in revenue, driven by strong stablecoin growth in the quarter.
• Circleswung to a net loss of $482.1 million, citing charges related to its June IPO this year.
• Circle also announced the forthcoming launch of a new blockchain called Arc, designed to be a network for stablecoin payments, FX, and capital markets applications.
  

• Circle Internet Groupshares jumped Tuesday after reporting its first quarterly earnings as a publicly listed company.

  While charges related to thestablecoinissuers debut contributed to a second-quarter loss, it reported a 53% increase in revenue, driven by strong growth instablecoins. Revenue rose to $658.1 million from $430 million in the same period a year ago.

• Shares rose more than 7% in premarket trading. The stock has soared nearly 420% since itwent public on June 5.

  The validation that weve seen in Circle, and the sentiment around circle is really about people understanding that the internet is colliding with the financial system, Circle CEO Jeremy Allaire told CNBCs Squawk Box Tuesday. Just like open internet, software, networks and utilities changed media, communications, retail and education, its happening in the financial system and stablecoin money and blockchains are foundational to that future.

  Circulation of USDC, the stablecoin Circle issues and manages, grew 90% from the previous year to $61.3 billion. Stablecoins are cryptocurrencies whose values are pegged to that of another asset, usually the U.S. dollar.

  Circlesaid it swung to a net loss of $482.1 million, or $4.48 a share, from earnings of $32.9 million, or breakeven per share, a year ago. The net loss included non-cash IPO-related charges of $424 million for stock-based compensation and $167 million to adjust the fair value of its convertible debt.

  The company issued guidance projecting between $75 million and $85 million in other revenue for the rest of 2025, as well as adjusted operating expenses of $475 million to $490 million. It anticipates the amount of USDC in circulation will grow at a 40% compound annual growth rate through the cycle.

  Circle also announced the forthcoming launch of a new blockchain called Arc, designed to be a network for stablecoin payments, FX, and capital markets applications. It will be integrated across Circles platform and services and will begin testing among developers in the fall.

  Circle, led by CEO Jeremy Allaire, is one of the earliest companies in the crypto industry and the issuer of USD Coin, commonly referred to by its ticker,USDC. Its the second largest stablecoin in the world, making up about 26% of the dollar-backed stablecoin market, behind TethersUSDT, which makes up about 67%, according to CryptoQuant.

  Traditionally used as bridge currencies for crypto traders, stablecoins today arebenefiting from increased interestbybanksandpayment firmsas the Trump administration rolls back restrictive Biden-era crypto policies in favor of more supportive crypto legislation, like the stablecoin bill known as the GENIUS Act, which Trump signed into the first U.S. crypto law last month.

  Since our IPO and since the GENIUS Act passed, the number of major financial institutions that are engaging with us in banking, payments, capital markets [and] so many categories has surged, Allaire said. Were seeing this incredible interest in working with us, including from some of the names that people have thrown out there as maybe doing their own thing by perhaps launching their own stablecoins.