Circle Reports $658 Million Q2 2025 Revenue from Stablecoin Reserves, First Earnings Since IPO

Circle, the second-largest stablecoin issuer after Tether, reported $658 million in revenue from its stablecoin reserves in the second quarter of 2025, marking its first quarterly earnings report since going public in June. After distribution costs, the company retained $251 million in profit.

According to Circle, most of these profits come from earnings on assets—primarily short-term U.S. Treasuries and cash—held to back its stablecoin, USD Coin (USDC). An average of $61 billion USDC was in circulation during the quarter, reflecting a 90% increase compared to the second quarter of the previous year.

The largest share of the company’s distribution costs goes to Coinbase, under a revenue-sharing agreement on reserves for stablecoins held on the crypto exchange.

Following the earnings announcement, Circle’s stock rose 7% in premarket trading shortly after 8:00 a.m. ET, giving the company a market capitalization of $39 billion—about 63% of the value of USDC’s market cap.

In comparison, chief competitor Tether, which is privately held, reported $4.9 billion in profit in Q2 2025 from a circulating supply of $157 billion USDT, underscoring the scale difference between the two issuers.

Circle Internet Group's stock (CRCL) experienced a decline, ending its recent rally as Wall Street raised concerns about increasing competition in the stablecoin market. Compass Point assigned Circle a 'Hold' rating, citing difficulties in justifying a higher valuation. Despite this, Circle's stock has become the largest component of VanEck's MVIS Global Digital Assets Equity Index (MVDAPP), with a 13% weighting, up from 11% the previous Friday. The index, developed by a VanEck subsidiary, tracks the performance of major companies in the crypto sector, requiring at least 50% of their revenue to come from digital assets. Investors can access the index through VanEck's Digital Transformation ETF, which holds 24 companies, including Coinbase (COIN), Strategy (MSTR), Metaplanet (3350 JP), and Block (XYZ). The ETF, launched in 2021, currently manages over $210 million in net assets, with year-to-date returns of 5.3% as of Friday. Circle's stock, which began trading on the New York Stock Exchange less than three weeks ago, surged past its IPO price of $31, jumping 167% on its first day and now trading 750% higher. The company's stablecoin, USDC, is expected to play a significant role in the U.S. digital asset economy if the GENIUS Act, recently passed by the Senate with a 68-30 vote, clears the House of Representatives. Additionally, Coinbase Derivatives and Nodal Clear announced plans to integrate USDC into U.S. futures markets as collateral, with implementation expected next year.

Circle's stock (NYSE: CRCL) experienced a significant decline, ending its recent rally as Wall Street analysts raised concerns about increasing competition in the stablecoin market. The stock had previously been a standout performer, but investor sentiment shifted due to fears of heightened rivalry from other stablecoin providers. Despite this downturn, Circle remains a key player in the digital asset space, recently becoming the largest component of VanEck’s digital asset index. This inclusion highlights its continued influence in the market, even as analysts caution investors to be wary of over-optimism. The stock's volatility underscores the broader risks and uncertainties in the cryptocurrency and stablecoin sectors, where regulatory scrutiny and competitive pressures are intensifying.

Circle Internet Financial Ltd., the issuer of the USD Coin (USDC) stablecoin, announced its second-quarter 2024 financial results, marking its first earnings release since its recent initial public offering. The company reported a 53% increase in revenue compared to the previous year, surpassing analysts’ estimates. This growth was attributed to strong performance in its stablecoin operations.

The earnings report revealed that the company’s business had expanded significantly in the three months ending June 2024, driven primarily by higher transaction volumes and wider adoption of its stablecoin products. The strong quarterly result led to a notable rise in Circle’s share price following the announcement.

No specific dollar figures for revenue or profit were included in the available report. However, the company emphasized the scale of the growth, with management highlighting the dominant role of stablecoin growth in driving revenue performance.

The Q2 2024 results follow Circle’s high-profile IPO earlier this year, which had attracted significant market attention and positioned the company as one of the most prominent public players in the cryptocurrency and digital payments sector.

Stablecoin issuer Circle has priced its initial public offering (IPO) at $31 per share, above the expected range, ahead of its debut on the New York Stock Exchange (NYSE). This pricing values the company at approximately $6.8 billion. The stock is set to begin trading on Thursday. The IPO's success reflects strong investor interest in Circle, which is a major player in the stablecoin market, particularly with its USD Coin (USDC). The company's shares have extended their rally following the U.S. Senate's passage of a landmark stablecoin bill, which provides regulatory clarity for the industry. This legislative development has also positively impacted other crypto-related stocks, such as Coinbase. Circle's stock has hit its fifth all-time high in June, driven by the regulatory progress and market optimism. Analysts have issued a 'Buy' recommendation for Circle's stock, which has soared by 20.4% amid the positive developments. Despite a sixfold rally, some market observers still consider Circle's stock a viable investment due to its strong position in the stablecoin sector and the growing regulatory support. The company, often described as a '$50 billion company that does almost nothing,' has become a focal point in the crypto industry due to its influence and market presence. However, concerns about the stock's safety at 60% have also been raised, indicating potential volatility.