Circle Internet Group’s (NYSE: CRCL) stock slipped in extended trading and premarket after the company moved to sell 10 million Class A shares, cooling a breathtaking rally of roughly 425% since going public on June 5.
The deal involves the issuance of two million new Circle shares and eight million shares from existing holders, along with a 30-day option that allows underwriters to purchase up to 1.5 million additional shares.
That fresh supply creates an overhang while putting a spotlight on profitability and its flawless execution.
Circle down 6% after hours post announcing a 10m share offering (2m shares being sold by the company and 8m from existing holders including management). Here's the list of everyone selling: pic.twitter.com/QNCDoHLOTy
— Omar (@TheOneandOmsy) August 12, 2025
The offering came right after Circle’s first quarterly earnings as a public company. Second-quarter revenue jumped about 53% year-over-year to about $658 million, narrowly topping estimates.
The company still logged a net loss of $482 million, mainly from the one-time IPO-related charges, but underlying operations showed clear improvement.
Stablecoin growth remains the engine.
Management described USDC as the fastest-growing stablecoin over the past year. Circulating supply increased nearly 90% year-over-year to $61.3 billion at quarter-end and $65.2 billion by August 10. Despite its growth, USDC still lags behind its main rival, USDT, by a significant margin.
Reserve income, largely driven by short-term treasuries backing USDC, also climbed sharply—reinforcing the direct tie between asset backing and revenue strength.
Besides the numbers, the company’s strategy continues to expand.
Circle previewed ARC, a network slated for launch in the second half of the year. It aims to deliver faster, more predictable, and lower-cost blockchain fees for institutions.
The company is also positioning ARC and broader payment rails to capitalize on growing use cases for dollar digital currencies, aided by a clearer U.S. policy framework following the GENIUS Act.
Despite all this positive movement from Circle, Wall Street remains split. Compass Point stays bearish with a Sell and a $130 target, while Seaport Research remains bullish with a Buy and $280 target.
Circle Isn’t Alone in Mid-August’s Crypto Stumble
Other crypto related stocks witnessed dip in prices.
Bitcoin Depot fell 14.3% premarket on August 12 despite higher Q2 revenue, hurt by dilution fears. Coinbase slipped after earnings, weighed down by regulation and weak markets.
Bitcoin Depot, $BTM, Q2-25. Results:
📊 EPS: $0.16 🔴
💰 Revenue: $172.11M 🟢
📈 Net Income: $12.32M
🔎 Revenue and profit climbed YoY as kiosk expansion and higher volumes drove strong margin and EBITDA growth. pic.twitter.com/eoU3DjtEV0— EarningsTime (@Earnings_Time) August 12, 2025
Nonetheless, fundamentals offer support. Bitcoin Depot’s revenue is growing, Coinbase retains scale and institutional reach, and Circle is tied to stablecoin adoption and institutional products.
Pullbacks have reset valuations, and if liquidity and macro trends improve, catalysts like user growth, product expansion, and on-chain activity could drive a rebound and push the stock prices higher.
