TLDR
- Circle (CRCL) announced a secondary offering of 10 million Class A shares, with 2 million from the company and 8 million from existing stockholders
- Stock dropped 6% in after-hours trading to $154 following the announcement
- Shares remain up about 450% since June IPO at $31 but down nearly 50% from record high of $299
- Company reported $428 million loss for Q2 2025 earlier Tuesday
- Underwriters have option to purchase additional 1.5 million shares
Circle stock took a hit in after-hours trading Tuesday, falling 6% to $154 after the stablecoin issuer announced plans for a secondary stock offering. The move comes just two months after the company’s market debut sent shares soaring.
The company filed with the SEC to sell 10 million Class A shares to the public. Circle itself will offer 2 million of these shares, while existing stockholders plan to unload 8 million shares.
The timing of this offering is telling. Circle went public on June 5 with an IPO price of $31 per share. Investor appetite for stablecoin exposure drove shares to a record high of $299.
Despite Tuesday’s after-hours decline, Circle stock remains up roughly 450% since its public debut. However, shares have given back nearly half their gains from the peak.
The secondary offering includes a greenshoe option. This allows underwriters to purchase an additional 1.5 million shares within 30 days if demand warrants it.
Earlier Tuesday, Circle reported its first quarterly results as a public company. The numbers weren’t pretty on the bottom line. The company posted a $428 million loss for the second quarter.
Earnings Paint Mixed Picture
IPO-related charges weighed heavily on Circle’s Q2 results. The company reported a loss of $4.48 per share for the quarter.
Revenue told a different story. Circle saw sales climb 53% compared to the same period last year. Strong growth in stablecoin usage drove this increase.
Circle operates behind the scenes of the crypto world. The company issues USDC, one of the largest stablecoins by market value.
Stablecoins have become essential infrastructure for crypto trading. They provide a way to move value without the volatility of other digital assets.
The secondary offering structure reveals who wants to cash out. With 8 million of the 10 million shares coming from existing stockholders, insiders appear ready to take profits.
Market Response Shows Investor Caution
The 6% after-hours drop shows how secondary offerings can pressure stock prices. More shares hitting the market typically means dilution for existing holders.
Circle’s stock performance has been a roller coaster since going public. The initial surge to $299 showed massive investor interest in stablecoin exposure.
The subsequent decline to current levels reflects profit-taking and perhaps some reality setting in. Even at $154, shares trade at roughly five times their IPO price.
The company’s Q2 loss of $428 million provides context for why insiders might want to sell. While revenue grew strongly, profitability remains elusive.
Circle operates in a competitive stablecoin market. USDC competes with Tether’s USDT and other dollar-pegged tokens for market share.
The filing with the SEC makes this offering official. Circle and selling stockholders can now begin the process of bringing these shares to market.
Institutional investors will likely be the primary buyers. Secondary offerings typically target professional money managers rather than retail investors.
The 30-day greenshoe option gives underwriters flexibility to meet demand. If the offering proves popular, they can exercise this option for additional shares.
Circle stock closed regular trading Tuesday up 1.3% before the after-hours decline. The secondary offering announcement came after market close.
