Circle Stock Drops as Profit Beats Expectations Amid Revenue Miss

Circle Internet Group's stock price dropped by nearly 4% in early trading on Wednesday after the company released its second-quarter earnings report. Despite revenue falling short of expectations, Circle's profit from continuing operations came in above Wall Street forecasts at $48 million.

The stablecoin demand rose during the quarter as conflict in the Middle East made crypto markets more volatile. Traders shifted their funds to dollar-linked assets and cut exposure to riskier tokens.

Circle reported a 7% increase in combined sales and reserve earnings, reaching $701 million for the three months ended June. The amount of USDC in circulation stood at $73.3 billion, up 19% from last year, while average circulation reached $76.5 billion, representing growth of 25%.