Circle Stock Pumps 11% on Q2 Report of Major Revenue Leap, New L1 Blockchain

Circle’s stock spiked over 11.4% in pre-market trading Tuesday morning, surging on a bullish Q2 earnings report highlighting substantial year-over-year revenue growth for the stablecoin issuer, and major new offerings on the horizon.

The stock, CRCL, eclipsed $179 early Tuesday. It closed at $161.17 Monday afternoon.

Total revenue and reserve income for Circle exploded by 53% from last year’s second quarter, the company said, to $658 million.

That growth was overwhelmingly driven by a 90% year-over-year increase in circulation of Circle’s flagship dollar-pegged stablecoin, USDC—which in turn allowed the company to earn $634 million in interest generated by reserves backing the tokens.

As of writing, there is over $65.6 billion worth of USDC in global circulation.

Circle to launch Arc layer-1

Circle also announced early Tuesday that it plans to launch its own layer-one, EVM-compatible blockchain, which will use USDC as its native gas token and will be integrated across Circle’s platforms and services. The chain, called Arc, is set to launch in public testnet this fall.

Tuesday’s earnings report marks the first Circle has published since going public via an IPO in early June. That offering was an unqualified success, which saw the company outperform Wall Street expectations four times over, and raise over $1 billion in the process.

Stablecoins in the U.S.

Excitement around the company was thanks in large part to regulatory shifts in the federal government which have paved the way for the integration of stablecoins with the mainstream U.S. economy.

Last month, President Donald Trump signed the GENIUS Act into law, creating a formal framework for the issuance and trading of stablecoins in the United States. Among the chief beneficiaries of the law is Circle, handily the largest stablecoin issuer based in the country.

Circle’s Q2 2025 report was not all sunshine and roses, however. Despite the bullish macro conditions for the company, Circle still reported a quarterly net loss of $482 million.

The company says the loss was irregular, and largely incurred by the success of its IPO—namely, $424 million spent in stock-based compensation related to vesting conditions met by the offering, and another $167 million in losses incurred by an increase in the fair value of its convertible debt, thanks to the sharp rise in Circle’s share price.

Nonetheless, some analysts were still disappointed by Circle’s Q2 results, and advised selling the stock.

One such group of analysts, Compass Point, targeted CRCL’s price at $130 in a flash note published following the report’s release, and said it had expected the company to have higher gross margins this last quarter.