TLDR
- Circle soars on USDC surge, $1.2B IPO, and big-name partnerships fueling growth.
- USDC jumps 90% YoY as Circle lands IPO, boosts revenue, and inks major deals.
- Circle gains on USDC boom, IPO windfall, and expansion into global payments.
- IPO-powered Circle posts strong USDC growth, revenue surge, and key alliances.
- USDC adoption drives Circle’s revenue, IPO success, and cross-border payment push.
Circle Internet Group (CRCL) shares rose sharply in early trade before easing through the session, ending modestly higher. The stock closed at $163.26, up 1.30% from the prior day, with a slight after-hours rise to $163.34.
The company reported strong second-quarter growth driven by a significant increase in USDC circulation and higher revenues.
USDC Circulation Growth and Revenue Expansion
USDC in circulation increased 90% year-over-year to $61.3 billion at the quarter’s end, reflecting strong adoption across sectors. The figure rose an additional 6.4% to $65.2 billion by August 10, supported by expanded commercial use cases. Total revenue and reserve income grew 53% year-over-year to $658 million, reflecting both transaction and reserve growth.
🚀 Circle's monster Q2 earnings are HUGE for $ETH!
$61.3B USDC in circulation → $65.2B by Aug 10th
📈 90% YoY growth, 49% YTD growth
🏆 Fastest growing major stablecoin
More USDC = more demand for ETH as the primary settlement layer. The stablecoin flywheel is accelerating! 🔥 pic.twitter.com/z32L6CKzVY— PaulBarron (@paulbarron) August 12, 2025
Reserve income increased 50% to $634 million, driven by an 86% rise in average USDC circulation despite a lower reserve return rate. Other revenue climbed 252% to $24 million, supported by stronger subscription, services, and transaction streams. This expansion reflected growing partnerships and broader integration of stablecoin-based solutions into payment and banking systems.
The company maintained operational momentum by signing new agreements with major financial institutions and digital asset firms. It also launched the Circle Payments Network, enabling stablecoin use in cross-border and domestic transactions. Over 100 institutions entered the pipeline to participate in the platform.
IPO Impact and Operating Performance
Circle completed a $1.2 billion IPO in June, selling 19.9 million primary shares at $31 each. The transaction generated $583 million in net proceeds after underwriting fees but before offering costs. The IPO triggered significant non-cash expenses related to stock-based compensation and debt valuation adjustments.
Operating expenses totaled $577 million, including $424 million in stock-based compensation tied to IPO-related vesting of restricted stock units. An additional $167 million expense came from an increase in convertible debt valuation following the stock price rise. These items contributed to a net loss of $482 million for the quarter despite adjusted EBITDA growth.
Adjusted EBITDA rose 52% year-over-year to $126 million, supported by operating leverage and the expansion of USDC circulation. Distribution, transaction, and other costs increased 64% to $407 million due to higher distribution payments from strategic partnerships. Growth in Coinbase’s USDC holdings and institutional engagement also added to costs.
Strategic Developments and Future Outlook
The company introduced Arc, a dedicated Layer-1 blockchain platform for stablecoin finance, as part of its broader full-stack strategy. This initiative aims to strengthen its infrastructure for global payment and capital market applications. Circle also committed to social impact by reserving over 2.6 million shares for its Circle Foundation before the IPO.
Partnerships with Binance, Corpay, FIS, Fiserv and OKX expanded the company’s reach in the digital asset ecosystem. The company positioned itself to capitalize on growing stablecoin demand and regulatory clarity following the passage of the GENIUS Act. Management signaled confidence in continued platform adoption and sector-wide engagement in coming quarters.
