Circle’s shares surged over 11% in pre-market trading on Tuesday, following a Q2 earnings report that revealed a 53% year-over-year revenue increase and the announcement of a new proprietary blockchain project. The rally pushed CRCL above $179 before the market opened, driven by rising USDC adoption and anticipation for the upcoming Arc network, as G.business reports, citing Decrypt.
According to the company, total revenue and reserve income in Q2 reached $658 million, up sharply from last year, thanks largely to a 90% growth in USDC circulation. This expansion allowed Circle to earn $634 million in interest from reserves backing its stablecoin. Currently, USDC’s global circulation stands at over $65.6 billion.
In a strategic move, Circle also revealed plans to launch Arc, an EVM-compatible layer-1 blockchain where USDC will function as the native gas token. The public testnet is expected this fall, integrating Arc across Circle’s services and platforms.
The Q2 earnings report was Circle’s first since its June IPO, which exceeded Wall Street forecasts by a factor of four and raised over $1 billion. Much of the current optimism around the company stems from recent regulatory changes in the U.S., including President Donald Trump’s signing of the GENIUS Act, which created a federal framework for stablecoin issuance and trading.
However, the quarter was not without setbacks. Circle posted a net loss of $482 million, primarily due to IPO-related stock-based compensation of $424 million and $167 million in losses from an increase in the fair value of convertible debt after the share price spike.
Despite the positive revenue trends, some analysts, including Compass Point, downgraded CRCL with a target of $130, citing lower-than-expected gross margins for the quarter.
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Source: Circle/DecryptCircle Stock Soars 11% on Q2 Revenue Jump and Plans for New Arc Blockchain