Circle, the company behind stablecoin USDC, has had an exceptionally strong third quarter. Net profit amounted to 214 million dollars, more than three times as much as a year earlier. The company thus surprised analysts and investors.
USDC growth drives profits to record highs
The profit explosion is largely due to the strong growth of stablecoin USDC. At the end of September, there was $73.7 billion in USDC outstanding, more than doubling from a year earlier. The average circulating amount was also almost twice as high as in 2024.
That growth translated directly into higher revenues. Total revenue, including revenue from reserves, amounted to $740 million. Adjusted EBITDA is a commonly used measure of operating profit and rose 78 percent to $166 million.
CEO: ‘We are building a new financial system’
Circle CEO Jeremy Allaire sees the growth as a sign that the company is on the right track. “USDC adoption continues to accelerate,” he says. “We are building a new economic operating system for the internet.”
An important part of this is the launch of Arc, Circle’s own blockchain network. The testnet phase went live at the end of October with the support of more than 100 companies from the world of banking, fintech and digital assets. Circle is also exploring whether it will issue its own token on Arc.
New collaborations and global expansion
Circle is also growing rapidly internationally. The Circle Payments Network is now active in eight countries and has 29 affiliated financial institutions. In addition, another 500 parties are ready to connect.
At the same time, Circle is strengthening its position with new collaborations, including with big names such as Visa, Kraken, Deutsche Börse and Fireblocks.
Outlook positive, but share price falls
Due to the strong quarterly results, Circle has upgraded its full-year expectations. The company now expects higher revenues from subscriptions and transaction services than previously anticipated, and is counting on additional costs due to expansion and staff growth.
Yet the stock market reaction remained tepid. CRCL shares fell by more than five percent to $98.30 on Tuesday and were also lower again in pre-market trading. Investors may be taking profits after the stock’s recent rise.
Source: https://newsbit.nl/circle-verdrievoudigt-winst-explosieve-groei-usdc-zorgt-voor-sterk-kwartaal/
