Circle Stock Plummets After Q2 Results Despite Strong USDC Growth
Circle Internet Group (NYSE: CRCL) stock plummeted over 3% in early trading on Wednesday, reversing an initial premarket gain of about 7%, as investors weighed Circle's long-term growth potential against near-term market conditions.
The company reported second-quarter earnings per share of $0.18, matching analysts' estimates. Despite this, shares declined after the announcement.
USDC in circulation reached $73.3 billion at the end of the second quarter, up 19% year over year. Total revenue and reserve income increased 7% to $701 million, while adjusted EBITDA rose 8% to $143 million.
Circle received final approval from the U.S. Office of the Comptroller of the Currency (OCC) to establish Circle National Trust, making it one of the first stablecoin issuers with a federal trust bank charter. This could support federally regulated digital asset custody and allow Circle to manage USDC reserves directly.