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Circle Touts $658 Million in Annual Revenue as Q2 Results Drop
The firm is fresh off a massively successful initial public offering in June and is riding the coattails of a pro-crypto Congress.
Stablecoin Giant Circle Rakes in $658M in Revenue
Circle (NYSE: CRCL), the world’s second largest stablecoin issuer, is having a stellar year so far, exceeding revenue expectations in its debut quarterly earnings report published Tuesday, showing $658 million in annual revenue compared to analysts’ estimate of $646 million.
The results come in just two months after Circle’s successful $1.2 billion initial public offering (IPO) in June. The USDC issuer has enjoyed tailwinds generated by a crypto-friendly Trump administration, which recently passed the GENIUS Act, a landmark piece of legislation that regulates stablecoins in the US.
Despite posting a $482 million net loss, primarily from costs associated with the IPO process, the company highlighted a 53% surge in revenue and a 90% growth in USDC circulation on a year-over-year basis. The stablecoin currently has a market value of more than $67 billion according to Coinmarketcap.
“I’m proud of Circle’s performance in the second quarter, our first as a public company,” said Circle CEO and Chairman Jeremy Allaire. “Circle’s successful IPO in June marked a pivotal moment, not just for our company, but for the broader adoption of stablecoins and the growth of the new internet financial system.”
Circle shares closed at $139.23 on Thursday after shedding 9.10%. The stock went on a downward trend when the firm announced an equity offering for 10 million shares, soon after releasing its Q2 financial report. Some have criticized the move, arguing it will dilute the value of existing stock. Others see it as a way for privileged insiders to take profits.