Circle Misses Profit Estimates, Cites Slowing Crypto Market
Circle, the issuer of the popular USDC stablecoin, reported mixed quarterly results. The company's revenue rose to $701.3 million in Q2, but fell short of Wall Street estimates by around $12 million.
The main culprit behind this profit shortfall was the distribution and transaction costs, which accounted for $410.4 million, a 1.2% increase from Q1. The company's net income also declined to $48.2 million, down 12.4% from Q1, due to rising operating expenses.
The USDC stablecoin market cap stood at $73 billion by the end of Q2, representing a 27% share of the overall dollar-backed stablecoin market. This is a slight decline from Q1's total and down from $76.8 billion at the end of Q1.
Circle CEO Jeremy Allaire attributed the profit fall to 'the current [interest] rate environment and a crypto market that has slowed, both are conditions outside our network.'