Circle’s Public Debut: USDC Growth Shines Despite $482M IPO Hangover
Wall Street meets crypto—complete with a half-billion-dollar headache.
USDC flexes while IPO losses sting
Circle's first earnings call as a public company delivered whiplash: stablecoin adoption surging as Wall Street's IPO machinery gouged a $482 million hole. The dollar-pegged darling kept expanding while traditional finance exacted its pound of flesh—because nothing says 'welcome to public markets' like nine-figure losses dressed as 'one-time expenses.'
Growth metrics mock legacy finance
USDC's relentless rise spotlights crypto's dirty little secret: real adoption doesn't care about SEC filings or lock-up periods. Meanwhile, bankers dust off their 'strategic investment' euphemisms—$482 million buys a lot of printer ink for those S-1 amendments.
Circle just gave crypto true believers fresh ammo—and reminded suits why they still wake up in cold sweat about stablecoins eating their lunch.
Strong USDC adoption drives revenue growth
The company surpassed analyst projections, with $658 million in revenue and reserve income for the second quarter, up 53% from the previous year. Reserve income ROSE 50% to $634 million, driven by higher interest rates and an 86% increase in average USDC circulation. Other revenue, which includes subscription and transaction services, grew 252% to $24 million.
USDC circulation climbed 90% from a year earlier to $61.3 billion at the end of the quarter. Circle’s share of the fiat-backed stablecoin market rose to 28%, while on-chain transaction volume grew more than fivefold to nearly $6 trillion.
Adjusted EBITDA, or earnings before interest, taxes, depreciation, and amortization, often used to gauge Core profitability, came in at $126 million, up 52% from last year. The revenue less direct costs margin, which measures profit after subtracting direct expenses like payment processing, narrowed to 38% from 42% due to higher distribution and transaction costs.
IPO charges and secondary offering weigh on Circle stock
The company posted a net loss of $482 million, compared with a $32.9 million profit a year earlier, largely due to $591 million in non-cash charges tied to the IPO. These included $424 million in stock-based compensation and $167 million from a revaluation of convertible debt as Circle’s stock price rose after listing.
In addition, Circle announced a secondary public offering of 10 million Class A shares immediately after the earnings release. While the offering is aimed at increasing liquidity, it signaled potential dilution to investors, sending the stock down more than 8% in after-hours trading.
Expanding network and blockchain plans
In May, Circle launched the Circle Payments Network, enabling financial institutions to use USDC for near-instant cross-border settlements. There are currently four active payment corridors and more than 100 institutions in the works. To further integrate USDC into traditional payment systems, strategic alliances have been formed with Binance, Corpay, FIS, Fiserv, and OKX.
Adding to the string of product updates, on Aug. 12, the company unveiled Arc, an open Layer-1 blockchain focused on stablecoin finance. A public testnet expected this fall. Circle’s position in the U.S. stablecoin market has also been strengthened by favorable regulatory tailwinds, such as the GENIUS Act’s passage.
