Circle Internet Group stock is sliding despite strong revenue and higher average USDC in circulation

Circle Internet Group released its third-quarter earnings on Wednesday, November 12, announcing a 66% jump in revenue and reserve income year-over-year (YOY). The $740 million figure stemmed, in large part, from a 97% increase YOY of average USDC in circulation. 

USDC, Circle’s flagship cryptocurrency stablecoin, is pegged to the U.S. dollar. It’s also one of the largest stablecoins in the world. In August, Circle announced Arc, a public blockchain designed specifically for stablecoins, such as USDC. 

In the earnings report, Circle claimed that over 100 companies are taking part in the launch of Arc public testnet. 

Jeremy Allaire, cofounder, CEO, and chairman at Circle, said the test was “met with extraordinary enthusiasm from partners across traditional and digital finance—evidence of the deep and diverse ecosystem forming around open, programmable money.”

Furthermore, Circle reported a net income of $214 million, a 202% improvement YOY. Notably, this is only Circle’s second earnings report after going public in June.

All YOY figures are reported by Circle based on private earnings during quarter three 2024. 

CRCL takes a tumble in premarket trading

Despite impressive revenue and net income growth, Circle shares (NYSE:CRCL) still took a tumble. After already closing 5.57% down on Wednesday, the drop continued in premarket trading on Thursday, falling more than 5%.

One factor could be Circle raising its expected 2025 adjusted operating expenses from between $475 million and $490 million to $495 million and $510 million. 

Circle blamed the updated outlook on “growing investment in building our platform, capabilities and global partnerships to meet the accelerating market interest and opportunity, as well as higher payroll taxes anticipated from option exercises.”

New York-based Circle Internet Group’s IPO was one of the most high-profile listings of the year. After shares were priced at $31, they reached a high of close to $300 less than a month after their market debut.

But the stock price has swung wildly since then. It’s down roughly 28% over the last month as of Tuesday’s close.

View the full article