Circle Internet Group Inc. today disclosed that its revenue jumped 54% year-over-year in the second quarter to $658 million.
The cryptocurrency company’s first earnings report since going public was met positively by investors. Circle ended the trading session with its share price up 1.3%. However, the company dropped more than 5% after-hours on the announcement that it’s already planning a new stock sale.
Circle will offer 2 million shares to investors while existing stakeholders are set to sell 8 million. The transaction will enable the company to capitalize on the significant gains that its stock has made since floating on the NYSE in June. Even after the extended trading selloff, Circle’s shares are worth about 400% more than at the time of its public offering.
The company is the issuer of USDC, one of the world’s most popular stablecoins. The cryptocurrency is backed by dollar-denominated assets such as U.S. Treasury Bills. The interest earned by those assets accounted for most of the $658 million in revenue that Circle generated during the second quarter.
According to the company, its reserve income rose 50% year-over-year, to $634 million. The increase was driven mainly by widening user adoption of USDC. The value of USDC in circulation surged 90% year-over-year to $61.3 billion in the second quarter and increased another 6.4% through August 10.
Circle’s Other Revenue segment grew even faster, increasing 252% year-over-year, to $24 million. The segment includes revenue from the company’s CPN platform, which enables financial institutions to quickly send stablecoins to one another. Circle also provides developer tools that ease tasks such as embedding cryptocurrency wallets into applications.
It hopes to grow its Other Revenue segment with a Tier 1 blockchain called Arc that it previewed today. According to Circle, Arc’s transaction fees will be dollar-denominated. This feature is designed to avoid the price volatility that emerges when a blockchain’s transaction fees are denominated in the cryptocurrencies it powers.
Circle closed the second quarter with a $482 million net loss. The loss was caused almost entirely by $591 million charge that the company took in connection with its public offering. Circle’s adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization, grew 52% on a year-over-year basis, to $121 million.
Co-founder and Chief Executive Officer Jeremy Allaire said the company “demonstrated sustained growth and adoption of our platform across a multitude of use cases and with a diverse set of industry-defining partners.”
Circle expects its Other Revenue segment to generate sales of $75 million to $85 million in the second half of 2025. In the longer term, the company estimates that USDC circulation will grow at a 40% compound annual growth rate, which should significantly boost its reserve income.
Photo: Unsplash
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