Circle Internet Group (NYSE: CRCL), the issuer of USDC stablecoin, went public on June 5 with an IPO price of $31 per share. The stock surged on debut, opening at $69.50 and climbing above $260 within two weeks. The rally was driven by optimism around regulatory progress, including the GENIUS Act, and Circle’s growing role in digital finance.
Despite the early rally, CRCL closed below $115 on September 6, down over 50% from its late-June peak, but still well above its IPO price. Analysts remain divided. JPMorgan lowered its price target to $89, citing valuation risks. Technical indicators show a bearish trend, with key support levels near $100.
Earnings Report Reveals Net Loss
Despite strong revenue growth, Circle’s first earnings report as a public company led to a reversal in momentum. In Q2, the company posted $658 million in revenue – up 54% year-over-year – but also reported a $482 million net loss. The loss was mostly due to non-cash IPO-related costs, including $424 million in stock-based compensation and $167 million tied to convertible debt adjustments.
The company continues to earn most of its revenue (over 96%) from interest on reserves backing its USDC stablecoin. USDC circulation reached $61.3 billion during the quarter.
In late August, Circle launched a 10-million-share public offering at $130, which included 8 million insider shares. This led to concerns about dilution and short-term pressure on the stock. Insider selling, including a $4 million transaction by Circle president Heath Tarbert, added to investor caution.
Read also: Top Stablecoins Leading the Crypto Market in 2025
Circle’s Expansion Plans Continue
However, while the stock has pulled back, Circle is continuing with its expansion strategy. The company recently launched the Circle Payments Network and is developing a proprietary blockchain, Arc, to improve stablecoin utility. Despite short-term headwinds, Circle remains one of the most closely watched crypto-related firms on the public markets.
