Circle's Earnings Report Brings Short Squeeze Hopes

Circle Internet Group's stock has been in the green as it prepares to report its fourth-quarter 2025 earnings on Tuesday. According to 10x Research data, about 17.8% of Circle's shares outstanding are currently sold short on Tuesday.

This has placed it among the most heavily shorted Bitcoin and crypto-linked stocks. The firm's 'Chart of the Day' report showed that short interest has been rising steadily over the past few months, even as some parts of the broader digital asset equity market have tried to bounce back.

Circle's price dropped after its first surge since being listed in June last year, and hedge funds have built up large short positions. The increase in short positions reflected cautious positioning by some investors ahead of the earnings report.