Circle stock jumps 5% after Q2 earnings beat forecasts, as USDC supply grows 19% and the firm’s Arc blockchain nears public launch.
Circle Internet Group (NYSE: CRCL) shares rose 5% in pre-market trading Wednesday after the USDC stablecoin issuer posted profits that outpaced Wall Street estimates, even as revenue came in slightly below target. The move underscores investor confidence in Circle’s underlying business despite a mixed quarter on paper.
Source: Token Terminal
Earnings Beat Despite Revenue Miss
Circle reported second-quarter revenue of $701 million, up 7% year-over-year but short of the $713 million analysts had projected. Adjusted earnings told a different story: the company posted 18 cents per share, ahead of the 16-cent consensus forecast. The stablecoin issuer’s core product drove much of the momentum. USDC closed the quarter with $73.3 billion in circulating supply, a 19% increase year-over-year, while on-chain transfer volume surged 150% to $14.8 trillion.
Arc Blockchain Draws Institutional Interest
Circle’s second-quarter report also detailed progress on Arc, its blockchain built for tokenized assets, payments, and agentic commerce. More than 100 institutions, including BlackRock, BNY Mellon, DTCC, and Standard Chartered, are reportedly building on the network, which is scheduled for public launch on September 16. The company also secured two regulatory wins during the quarter: a national trust bank charter from the Office of the Comptroller of the Currency and a state-level license from New York.
Source: circle.com
Circle’s position in euro-denominated stablecoins strengthened as well, though it wasn’t highlighted in the earnings report itself. According to Token Terminal data, the company now controls 65% of the euro-pegged stablecoin market through its EURC product. That dominance grew partly because Tether declined to pursue a MiCA license, citing concerns that the regulatory framework favors a future digital euro over private stablecoins. Even so, EURC’s own growth was modest:
- EURC supply rose just 0.11% year-over-year
- Market capitalization stood at $455.8 million
- Supply remained concentrated on Ethereum, Solana, and Base
Wall Street Split on Stock’s Trajectory
Analyst opinion on CRCL diverges sharply. Morgan Stanley downgraded the stock to a bearish $38 price target, implying 39% downside from its current $63.50, citing slowing USDC supply growth and rising competition in tokenized money market funds. Other analysts see more room to run. The broader consensus price target sits at $104, suggesting 64% upside, while Bernstein has projected the stock could climb as high as $140. The split reflects a broader debate over whether Circle’s institutional partnerships and regulatory progress can offset slower stablecoin growth in a more competitive market.