Circle Reports $482 Million Net Loss Despite USDC Growth and New Blockchain Launch
Circle (CRCL) reported a second-quarter net loss despite significant growth in its stablecoin, USDC. Key points include:
- USDC circulation nearly doubled year-over-year.
- On-chain transaction volume increased over five times to $5.9 trillion.
- Circle is developing a layer-1 blockchain named Arc for stablecoin payments and capital markets.
- Arc will be EVM-compatible, using USDC as its gas token, featuring an integrated stablecoin FX engine and sub-second settlement finality.
- Circle's USDC market share rose to 28% with total revenue increasing 53% to $658 million.
- Net loss was $482 million primarily due to the June IPO costs.
- Earnings before interest, tax, depreciation, and amortization (EBITDA) grew by 52% to $126 million.
- Interest in the stablecoin sector surged following the signing of the GENIUS Act, establishing a regulatory framework for payment stablecoins in the U.S.
Shares of Circle rose 6.35% to $171.41 in pre-market trading.