Circle Internet Group retreated Wednesday after announcing a new stock offering late Tuesday. Shares of the stablecoin issuer advanced during Tuesday trade after it topped revenue estimates for its first quarterly report as a public company.
Circle Internet Group on Tuesday afternoon announced that it is offering up to 10 million shares in a public offering, according to a filing with the Securities and Exchange Commission. The company plans to offer 2 million shares of its common stock, while selling stockholders are offering 8 million shares. Underwriters also have a 30-day option to purchase up to 1.5 million shares.
Circle noted that it will not receive any proceeds from sales by the stockholders.
Circle expects to generate about $309.4 million from the offering, or $542.6 million if the underwriters exercise their options. The company plans to use the proceeds for working capital and general corporate purposes, including payment obligations, business investments, and potential acquisitions.
Circle Earnings
Circle which issues the USDC stablecoin, reported a net loss of $482 million due to charges from its $1.2 billion IPO in June. That works out to a loss of $4.48 per share.
Total revenue and reserve income increased 53% to $658 million and beat estimates for $646 million.
Circle reported that its adjusted earnings before interest, taxes, depreciation and amortization jumped 52% to $126 million, while FactSet expected $118 million.
The amount of USDC in circulation grew 90% to $61.3 billion at quarter-end, and has increased to $65.2 billion as of Aug. 10.
CEO Jeremy Allaire said he was proud of the company's Q2 performance, which saw sustained growth and platform adoption. Circle, like the rest of the crypto industry, received a major boon this summer as President Donald Trump signed the GENIUS Act regulating stablecoins into law in July.
"This is an extraordinary moment for our company and industry," Allaire said in the release. "We are seeing accelerating interest in building on stablecoins and partnering with Circle across every significant sector of the financial industry."
For 2025, Circle expects its "other" revenue to range from $75 million to $85 million.
The company forecasts that the amount of USDC in circulation will grow at a 40% compound annual growth rate over a multiyear period.
New Products And Services
The company in May launched the Circle Payments Network, which has four active payment corridors and over 100 financial institutions in the pipeline. The company expects growth to accelerate in the second half of the year as it opens new payment corridors and adds enterprise-focused product capabilities.
Circle during the quarter expanded its strategic partnerships with the likes of Binance, Corpay, FIS, Fiserv and OKX, which should help boost adoption.
The issuer in the release also announced Arc, an open Layer-1 blockchain that facilitates stablecoin payments and allows users to pay for ethereum gas fees on the Ethereum Virtual Machine network. Circle expects to launch public tests for Arc this fall.
Circle Stock Rises Early
CRCL fell more 6.2% Wednesday. The stock pared its Tuesday gain to 1.3% after jumping about 10% in early trade. Shares are trading near their 10-day line but below their 21-day line.
Circle launched its IPO at 31 per share on June 5 and soared to about 299 per share by June 23. The stock has fallen from that high, but was still up 394% from its IPO price at Tuesday's close.
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