Circle’s Stock Plummets 5% in After-Hours Trading Following 10 Million Class A Share Offering Announcement
Wall Street's latest 'trust us, it's dilution for your own good' moment hits Circle.
After-hours bloodbath: Investors ditch Circle stock as fresh shares flood the market.
The crypto-adjacent fintech played a classic Wall Street move—printing new shares while pretending it's 'for strategic growth.' Meanwhile, existing shareholders watch their stakes evaporate like unsecured USDC reserves.
Pro tip: When a company suddenly needs to sell 10 million new shares, someone's cashing out—and it's probably not you.
Crypto prices pull back after overnight highs
Bitcoin edged close to its all-time high after an overnight rally before settling flat at $118,981.86. Ether also flattened at $4,256.90 after climbing on Sunday to its highest level since December 2021. On Friday, Ether crossed $4,000 for the first time since that same month.
Both cryptocurrencies retreated from their intraday highs as the day went on. The early gains came alongside a rise in U.S. equity futures on Tuesday morning, as traders waited for key inflation data later in the week.
U.S. stocks started the day near record levels but lost momentum in the afternoon, dragging crypto assets down with them. Companies tied to crypto prices still posted gains during the session. Coinbase shares rose nearly 3%, Galaxy Digital was up 3%, and Bitcoin proxy Strategy advanced more than 1%.
Debt growth drives Asian buying
The strong crypto rally in recent weeks has been fueled by buying during Asian trading hours, tied to rapid growth in U.S. government debt. Markus Thielen, CEO of 10x Research, linked bitcoin’s breakout in early July to President Donald Trump signing the Big Beautiful Bill, which increased the U.S. debt ceiling by $5 trillion.
Markus said the surge “isn’t random” and is being driven by “the fastest U.S. debt expansion in history.” He added that whether the U.S. economy holds up or slows down, the influx of debt acts as a tailwind for hard assets like bitcoin and gold.
Markus also pointed to $133,000 as the next key resistance level for bitcoin, saying current market positioning and structure favor bullish traders. Ethereum-related stocks were among the biggest movers, as capital inflows into newly formed treasury companies helped push Ether above $4,000.
Bitmine Immersion Technologies jumped 25% on Tuesday after a similar gain on Friday, while SharpLink Gaming rose 11%.
Investor interest in ethereum has recently outpaced Bitcoin in exchange-traded products. Last week, Ether ETFs recorded $326.83 million in inflows, compared to $246.75 million for Bitcoin ETFs, showing traders’ growing appetite for the second-largest crypto.
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