- Circle to sell 10M Class A shares, including 8M from existing shareholders, after massive IPO rally.
- Q2 revenue surged 53% to $658M, beating analyst estimates, despite IPO-related losses.
- USDC circulation rose 90% YoY to $65.2B, making it the fastest-growing major stablecoin.
Circle Internet Financial shares dropped more than 5% in after-hours trading Tuesday after the company announced plans to sell 10 million Class A shares, following a staggering rally of over 425% since its June 5 IPO.
In a filing with the US Securities and Exchange Commission (SEC), the stablecoin issuer said it will offer 2 million shares itself, while existing shareholders will sell 8 million shares.
Underwriters will also have a 30-day option to purchase an additional 1.5 million shares.
Circle’s First Quarterly Earnings
The announcement came just hours after Circle reported its first quarterly earnings as a publicly traded company. For the second quarter, total revenue climbed 53% year-over-year to $658 million, topping analyst expectations of $647 million.
Adjusted EBITDA rose 52% to $126 million. However, IPO-related charges pushed the company to a net loss of $4.48 per share.
Primary Growth Driver: USDC
USDC, the company’s flagship stablecoin, has been the primary growth driver. Circulation surged 90% year-over-year to $61.3 billion at the end of Q2 and has since increased another 6.4% to $65.2 billion as of August 10.
CEO Jeremy Allaire described USDC as the “fastest-growing major stablecoin over the past year,” noting rising adoption for cross-border settlements and as a global store of value.
Who’s using USDC? The growth of USDC is all about integrations. Here’s our story on how the DeFi platform Hyperliquid is using it.
Circle Also Unveils “Arc,” Its Own Layer 1 Blockchain
Alongside its earnings release, Circle unveiled Arc, a purpose-built, open Layer-1 blockchain designed for stablecoin finance.
Fully Ethereum Virtual Machine (EVM)-compatible, Arc will use USDC as its native gas token, allowing transaction fees to be paid directly in stablecoins. Key features include sub-second settlement, an integrated FX engine, and opt-in privacy controls.
Circle says Arc is optimized for payments, foreign exchange, and capital markets infrastructure, with an emphasis on cost efficiency, speed, and regulatory compliance. A public testnet is expected to go live later in 2025.
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