TLDRs;
- Circle posts 77% revenue growth as USDC circulation rises, sending stock sharply higher.
- Market optimism and technical factors fuel Circle’s 35% surge, spotlighting stablecoin demand and AI payments.
- Circle pushes new blockchain and payment partnerships, expanding revenue streams beyond reserves.
- Rate cuts, regulatory uncertainty, and competition could challenge Circle’s growth despite earnings surge.
Circle Internet Group’s (NASDAQ:CRCL) stock surged an impressive 35.5% Wednesday, closing at $83.14 after the company posted quarterly earnings that exceeded Wall Street expectations. The gains mark a notable rebound for the stablecoin issuer, which had faced a challenging stretch alongside other crypto-related equities.
Investors reacted enthusiastically after Circle reported a substantial rise in both USDC circulation and reserve income, signaling resilience in the company’s core stablecoin business amid broader market pressures.
Strong USDC Growth Drives Revenue
Circle’s Q4 results highlighted a 72% jump in USDC in circulation, directly boosting reserve income and overall revenue. Total revenue for the quarter came in at $770 million, a 77% increase from the previous year, with $733 million attributed to reserve earnings. Net income from continuing operations reached $133 million, while adjusted EBITDA, a measure that excludes non-cash items, taxes, and interest, hit $167 million.
🔥 LATEST: Circle reported strong 2025 growth with USDC supply reaching $75.3B, $11.9T in onchain volume, and $770M in revenue and reserve income. pic.twitter.com/3XuckJO5SB
— Cointelegraph (@Cointelegraph) February 25, 2026
Jeff Cantwell, analyst at Seaport Research Partners, noted, “The key takeaway is that USDC continues scaling rapidly, demonstrating the enduring demand for dollar-pegged digital assets.” CEO Jeremy Allaire added that potential rate cuts would be “welcome,” emphasizing their positive impact on money velocity and stablecoin adoption.
Market Factors and Investor Sentiment
Circle stands out as one of the few publicly traded stablecoin-focused companies, putting it under particular scrutiny as investors weigh interest rate policy, regulatory developments, and growth potential beyond reserve interest. Analysts flagged the surge as both a technical breakout and a reflection of renewed optimism in digital commerce and AI-driven payment solutions.
MarketWatch highlighted a “breakaway gap” at the opening, with Andrew Jeffrey of William Blair advising investors to “be long Circle.” Meanwhile, Mizuho’s Dan Dolev cited hopes for digital commerce expansion and AI agent adoption as contributing to the rally.
Expanding Partnerships and Platform Development
Circle is actively broadening its narrative beyond USDC issuance. The company showcased progress on its Arc blockchain test network and growth in the Circle Payments Network. It also revealed new and expanded partnerships, including Visa integrating USDC for settlements and collaboration with prediction market Polymarket.
These developments signal Circle’s intent to diversify revenue streams and strengthen its foothold in the emerging stablecoin ecosystem, countering concerns about overreliance on reserve income.
Risks and Outlook
Despite the strong earnings, the company faces potential headwinds. Reserve income could decline if interest rate cuts accelerate, while regulatory shifts or a crisis of confidence might trigger redemptions, affecting both volume and margins. Competition is also intensifying, with Tether and other new stablecoins entering the market.
Investors are closely watching whether Circle can maintain momentum, especially as attention turns to the Federal Reserve’s March 17-18 meeting. Upcoming jobs data and policy signals may influence both the broader market and Circle’s stock trajectory.
Circle’s robust Q4 performance underscores the appeal of stablecoins in a volatile crypto landscape, highlighting USDC’s expanding adoption and the company’s capacity to leverage reserve income and strategic partnerships. With its stock rebounding sharply, Circle is now a key focus for investors navigating the evolving digital asset ecosystem.
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