Circle reports 90% surge in USDC circulation, posts $482 million net loss

NEW YORK - Circle Internet Group, Inc. (NYSE:CRCL), now a $36.7 billion market cap company following its remarkable 93% surge over the past six months, reported a 90% year-over-year increase in USDC stablecoin circulation to $61.3 billion for the second quarter of 2025, according to a company statement released Tuesday.

Despite strong growth in its stablecoin business, the company posted a net loss of $482 million for the quarter, primarily due to $591 million in non-cash charges related to its recent initial public offering. These charges included $424 million in stock-based compensation tied to IPO vesting conditions and a $167 million increase in convertible debt fair value resulting from share price appreciation.

Total revenue and reserve income grew 53% year-over-year to $658 million, while adjusted EBITDA increased 52% to $126 million compared to the same period last year.

Circle completed its $1.2 billion IPO in June, selling 19.9 million newly issued primary shares at $31 per share, generating net proceeds of $583 million after underwriting discounts and commissions. Trading at $161.17, the stock appears overvalued according to InvestingPro Fair Value metrics, with current P/E ratio exceeding 500x. For more insights on overvalued stocks, visit our Most Overvalued Stocks list.

The company highlighted several commercial developments, including the May launch of Circle Payments Network, which has attracted over 100 financial institutions to its pipeline. Circle also announced partnerships with companies including Binance, Corpay, FIS, Fiserv, and OKX.

Additionally, Circle introduced Arc, an open Layer-1 blockchain designed specifically for stablecoin finance, which is expected to launch in public testnet this fall.

"I’m proud of Circle’s performance in the second quarter, our first as a public company, where we demonstrated sustained growth and adoption of our platform," said Jeremy Allaire, Co-Founder, Chief Executive Officer and Chairman at Circle, according to the press release.

The company maintained its guidance of 40% CAGR for USDC circulation growth through the market cycle.

In other recent news, Circle Internet Group has partnered with Binance, allowing institutional clients to use Circle’s USYC tokens as collateral for derivatives trading. This collaboration enables clients to hold USYC, which represents interests in U.S. Treasuries, through Binance Banking Triparty or Ceffu. In a separate development, Circle Internet Group’s stock rating was downgraded from Neutral to Sell by Compass Point, with a price target reduction to $130.00 from $205.00. This downgrade follows the passage of U.S. stablecoin legislation, prompting a reassessment of Circle’s long-term economic prospects. Additionally, Circle Internet Group has applied to the Office of the Comptroller of the Currency to establish a national trust bank for its USDC operations. If approved, the bank would manage the USDC Reserve and provide digital asset custody services. Meanwhile, competitor Ripple’s application for a federal banking license has reportedly increased competitive pressure on Circle.

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