Circle Internet Group shares gained 5% in premarket trading after second-quarter profit topped forecasts, while USD Coin(USDC) supply grew 19% year over year. Key Points: Circle reported $701
Circle Internet Group shares gained 5% in premarket trading after second-quarter profit topped forecasts, while USD Coin(USDC) supply grew 19% year over year.
- Circle reported $701M in second-quarter revenue, up 7% but below analysts’ $713M estimate.
- USDC supply reached $73.3B, while quarterly onchain transfer volume rose 151% to $14.8 trillion.
- Arc is scheduled for a public mainnet launch on Sept. 16 with more than 100 institutional and ecosystem builders.
Circle reported $701M in total revenue and reserve income for the second quarter, a 7% annual increase that fell slightly below analysts’ $713M estimate. Adjusted earnings reached 18 cents a share, topping the 16-cent consensus forecast.
USDC ended the quarter with $73.3B in circulation, up 19% from a year earlier, while onchain transfer volume climbed 151% to $14.8 trillion. Jeremy Allaire, Circle’s co-founder and CEO, said the results reflected weaker crypto activity and the current interest-rate environment, but added that recent business activity “tells a different story.”
The company said more than 100 institutions and technology firms are building on Arc, including BlackRock, BNY Mellon, DTCC and Standard Chartered, before the network’s scheduled public launch on Sept. 16.
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Circle also received final approval from the Office of the Comptroller of the Currency to establish a national trust bank and secured a separate New York trust-company approval.
In Europe, Euro Coin(EURC) controlled about 65% of the euro-pegged stablecoin market, according to Token Terminal, although its supply was nearly unchanged year over year at a $455.8M market capitalization. Paris-based Société Générale ranked second with 16%.
Wall Street remains divided. Morgan Stanley cut its Circle price target to $38, citing slower USDC growth and competition from tokenized money-market funds, while MarketBeat’s analyst consensus stood at $104.18, implying about 64% upside from the Aug. 5 close.
Bernstein maintained a more bullish $140 target, reflecting expectations that Circle can expand beyond reserve income through payments, tokenization and Arc.
That view remains uncertain because lower interest rates can reduce earnings on the assets backing USDC.
Circle’s stronger European position followed Tether’s decision to wind down its euro stablecoin and avoid MiCA authorization, which left more room for regulated alternatives. The shift helps explain why EURC gained market share even as its overall supply barely grew.
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