Circle Profit Beats Estimates Despite Revenue Miss and Falling Reserve Returns

Circle, a stablecoin issuer, reported a net income of $0.18 per share in Q2, beating Wall Street estimates, but its shares fell nearly 4% as revenue came in lower than expected.

The company's USDC circulation rose 19% to $73.3 billion and onchain transaction volume jumped 151% year-over-year due to increased adoption of stablecoins during the quarter, driven by market volatility.

Circle's Chief Financial Officer Jeremy Fox-Geen has noted that the company is built to navigate multiple interest rate cycles, and higher circulation volumes helped offset a drop in reserve return rates.