Circle Stock Slides After Big Secondary Offering

[Redator]

Circle Internet Group’s stock took a hit late in the day after it revealed a plan to sell up to 10 million shares. Only 2 million of those are new shares issued by the company. The other 8 million are being sold by insiders looking to cash in. There’s also a clause for underwriters to pick up another 1.5 million if demand holds, potentially pushing the total proceeds past half a billion dollars.

Strong Earnings Overshadowed by Share Sale

Earlier in the day, things looked bright. Circle had released its first earnings since going public, showing $658 million in revenue and $126 million in adjusted EBITDA. Both numbers were up more than 50 percent from the same time last year. But those solid results were clouded by a net loss of $482 million, mostly tied to IPO-related costs. Investors didn’t stick around to celebrate.

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

USDC Keeps Climbing

One of the main drivers behind Circle’s revenue growth is the surging circulation of its stablecoin, USDC. It ended the quarter at $61.3 billion and was already at $65.2 billion in early August. That’s a 90 percent jump year-over-year. The numbers reflect growing adoption of USDC across payments, trading, and other financial use cases.

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Company Gets Cash, Insiders Get Liquidity

Circle’s portion of the raise will go toward general expenses, growth initiatives, and possibly acquisitions. It’s not just a cash grab. At the same time, it gives early investors a chance to take some money off the table after a huge run since the IPO. The balance between long-term strategy and short-term liquidity is clear.

Regulatory Green Light Still Matters

Circle’s momentum is also being helped by recent regulatory clarity. The GENIUS Act gave stablecoin issuers like Circle a firmer legal footing in the United States. This has made USDC a more attractive option for institutions that previously sat on the sidelines. While the market remains unpredictable, having policy on your side helps.

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Gains Still Towering Since IPO

Despite the sell-off, Circle’s stock is still way up compared to its debut. Since June, it’s surged over 400 percent. Investors have been riding the wave of USDC’s growth and the broader return of interest in crypto infrastructure. One dip doesn’t erase months of strong momentum.

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Analysts Aren’t in Agreement

Opinions on Wall Street are mixed. Out of 16 analysts covering the stock, the ratings are spread across Buy, Hold, and Sell. Some are bullish on Circle’s early lead and expanding regulatory moat. Others are cautious, pointing to competition from giants like PayPal and Amazon entering the stablecoin race.

Looking Ahead

Circle now faces the task of proving it can maintain this pace. The next test will be how effectively it uses the money raised and whether USDC can keep expanding. New products like the Arc blockchain and the Circle Payments Network are on the roadmap. Whether those plans translate into long-term upside remains to be seen.

Circle has had a huge year, but this week’s stock dip is a reminder that growth comes with growing pains. Investors now want to see what the company can actually do with its momentum.

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Key Takeaways

• Circle’s stock dropped after announcing a 10 million share offering, with most shares sold by insiders cashing out.
• Despite strong earnings, $658 million in revenue and $126 million in adjusted EBITDA, Circle posted a $482 million net loss due to IPO costs.
• USDC circulation is up 90% year-over-year, reaching over $65 billion and driving much of Circle’s revenue growth.
• The share sale balances new funding for growth with insider liquidity, giving Circle runway while early backers lock in profits.
• Circle’s long-term success now hinges on how it uses the capital and whether USDC can keep gaining institutional traction.

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