Circle Soars 11% After Stunning Q2: Revenue Rocket & Game-Changing L1 Blockchain Launch
Wall Street bulls stampeded into Circle stock after the stablecoin giant dropped a nuclear-grade earnings bomb—blasting past revenue forecasts and unveiling a new blockchain play.
The 11% price surge smells like institutional FOMO meets crypto-native optimism. Because nothing gets TradFi hearts racing like double-digit gains paired with blockchain buzzwords.
Revenue on steroids? Check. Layer-1 ambitions? Double check. The only thing missing was a 'to the moon' meme—but give the suits time to discover CTRL+C.
Meanwhile, crypto OGs smirk: 'Took you long enough.' After all, stablecoins have been printing real yield since DeFi Summer—bankers just needed a quarterly report wrapped in PowerPoint to notice.
Circle to launch Arc layer-1
Circle also announced early Tuesday that it plans to launch its own layer-one, EVM-compatible blockchain, which will use USDC as its native gas token and will be integrated across Circle’s platforms and services. The chain, called Arc, is set to launch in public testnet this fall.
Introducing Arc, an open Layer-1 blockchain purpose-built for stablecoin finance.
From payments to FX to capital markets, Arc is the home for builders innovating with digital money and tokenized value on the internet.
Stablecoins have shown us what’s possible.
They’ve powered… pic.twitter.com/N99Kc8UxpG
— Arc (@arc) August 12, 2025
Tuesday’s earnings report marks the first Circle has published since going public via an IPO in early June. That offering was an unqualified success, which saw the company outperform Wall Street expectations four times over, and raise over $1 billion in the process.
Stablecoins in the U.S.
Excitement around the company was thanks in large part to regulatory shifts in the federal government which have paved the way for the integration of stablecoins with the mainstream U.S. economy.
Last month, President Donald TRUMP signed the GENIUS Act into law, creating a formal framework for the issuance and trading of stablecoins in the United States. Among the chief beneficiaries of the law is Circle, handily the largest stablecoin issuer based in the country.
Circle’s Q2 2025 report was not all sunshine and roses, however. Despite the bullish macro conditions for the company, Circle still reported a quarterly net loss of $482 million.
The company says the loss was irregular, and largely incurred by the success of its IPO—namely, $424 million spent in stock-based compensation related to vesting conditions met by the offering, and another $167 million in losses incurred by an increase in the fair value of its convertible debt, thanks to the sharp rise in Circle’s share price.
Nonetheless, some analysts were still disappointed by Circle’s Q2 results, and advised selling the stock.
One such group of analysts, Compass Point, targeted CRCL’s price at $130 in a flash note published following the report’s release, and said it had expected the company to have higher gross margins this last quarter.
