Circle Internet Group (NYSE: CRCL) saw its shares jump by 5% during pre-market hours on Wednesday, 5th August. The stock of the USDC stablecoin issuer surged following strong profits beyond analysts’ forecasts, despite falling short on revenue targets.
The issuer reported 7% annual revenue growth of $701M, but this slightly fell short of analysts’ expectations of $713M. However, it posted adjusted earnings of 18 cents, surpassing analysts’ forecast of 16 cents.
In particular, the firm’s US dollar-backed stablecoin, USDC, saw strong growth. The stablecoin ended Q2 at $73.3B in supply, marking a 19% growth year-over-year (YoY) while USDC on-chain transfer volume increased by 150% to $14.8 trillion.
Commenting on the results, Circle CEO Jeremy Allaire said,
Our quarterly financial results reflect the current rate environment and a crypto market that has slowed – both are conditions outside our network. But near-term activity tells a different story.
Circle’s bet on Arc blockchain and tokenization
The report also shed light on the firm’s Arc blockchain. Circle said that over 100 institutions and firms, including BlackRock, BNY Mellon, DTCC and Standard Chartered, have been building on the chain designed for tokenized assets, payments, and an agentic economy.
The chain is expected to debut publicly on 16th September.
Besides, the firm scored some wins on the licenses front; a federal one from OCC to operate a national trust bank and a state-level one from New York.
Another positive note that was not captured by the report was its growing moat in Euro-based stablecoins. According to Token Terminal data, the issuer now controls 65% of the Euro-pegged stablecoin market, thanks to its EURC product.
Only Paris-based Société Générale came in second at 16% market share.
In terms of supply growth, however, the EURC only increased by 0.11% YoY and had a $455.8M market cap. Most of the supply was concentrated on Ethereum, Solana, and Base.
The increasing moat in the Eurozone was partly due to Tether bowing out of the market. Tether decided not to apply for a MiCA license, claiming that the rules were risky and designed to protect the upcoming digital Euro.
Analysts go bullish on Circle stock
Here, it’s worth pointing out that Morgan Stanley downgraded the CRCL stock with a bearish price target of $38, implying a 39% downside from the current $63.5. According to the wirehouse, slow USDC supply growth and competition in tokenized money market funds could affect Circle’s revenue.
Even so, the analysts’ consensus target was $104, hinting at a 64% upside potential. In fact, Bernstein projected that CRCL stock could rally as high as $140.
Final Summary
- Circle posted $701M in revenue in Q2 2026, slightly missing analysts’ target of $713M.
- Despite Morgan Stanley’s bearish call, analysts’ consensus projected a 64% upside potential.
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