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Circle shares jump after Q2 profit beat and USDC growth
Circle said USDC circulation rose 19% year over year to $73.3 billion by end of June, even as revenue came in slightly below forecasts.
Circle Internet shares rose about 10% in premarket trading after the stablecoin issuer reported a second-quarter adjusted earnings beat, offsetting a revenue miss. Circle reported adjusted earnings of 18 cents per share, above analysts' consensus of 16 cents. Revenue and reserve income rose 7% year over year to $701 million, slightly below Wall Street expectations of $712 million. Net income from continuing operations reached $48 million, above estimates of $43 million, while adjusted EBITDA increased 8% to $143 million.
The company highlighted continued growth in USDC despite a slower crypto market. USDC circulation reached $73.3 billion at the end of June, up 19% year over year, and onchain transaction volume surged 151% to $14.8 trillion during the quarter.
Circle also provided an update on its Arc blockchain network, which it scheduled to launch its public mainnet on Sept. 16. Circle said more than 100 ecosystem and institutional builders are developing on Arc, and its validator set includes firms such as BlackRock, DTCC, ICE, Mastercard, Visa, Standard Chartered, and Galaxy. According to CoinDesk, BlackRock plans to deploy its BUIDL tokenized U.S. Treasury fund on Arc, while DTCC said it is working on infrastructure to tokenize securities held at its depository.