Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnSquareMore
Circle’s Rapid USDC Expansion Fails to Boost Struggling Shares Amid Rising Expenses and Divided Analyst Opinions

Circle’s Rapid USDC Expansion Fails to Boost Struggling Shares Amid Rising Expenses and Divided Analyst Opinions

Bitget-RWA2025/11/12 13:22
By:Bitget-RWA

- Circle reported strong Q3 2025 results with $73.7B USDC growth but stock fell 5.4% premarket as costs rise and analysts split. - Revenue surged 66% to $740M while net income jumped 202% to $214M, yet RLDC margins dropped 270 bps to 39% amid expanding balances. - Arc blockchain's public testnet attracted 100+ institutional participants, with partnerships announced with Deutsche Börse and Visa to expand stablecoin adoption. - Analysts remain divided: J.P. Morgan "Sell" vs. Monness Crespi "Buy" at $150, whi

Circle Internet Group (CRCL) delivered strong results for the third quarter of fiscal 2025, fueled by rapid expansion in its

stablecoin network. However, shares dropped 5.4% in premarket trading as investors reacted to increasing expenses and mixed reviews from analysts. USDC’s circulation soared to $73.7 billion by the end of the quarter, marking a 108% increase from the previous year. This surge pushed total revenue and reserve earnings to $740 million, up 66% compared to the same period in 2024, according to a .
Circle’s Rapid USDC Expansion Fails to Boost Struggling Shares Amid Rising Expenses and Divided Analyst Opinions image 0
Net profit climbed 202% to $214 million, while adjusted EBITDA rose 78% to $166 million, as noted in a . Despite these positive numbers, CRCL’s stock continued to slide, deepening its 8.7% year-to-date loss after a surge following its IPO in June, according to a .

The earnings release also underscored Circle’s strategic move into institutional finance with its Arc blockchain platform. The company rolled out a public testnet for Arc, drawing over 100 participants from the banking, fintech, and digital asset sectors, as reported by

. Arc’s goal is to connect traditional and decentralized finance by supporting programmable financial operations, and is considering launching a native token to encourage network activity—a step that could significantly influence its future growth, according to the . The company also revealed collaborations with Deutsche Börse and Visa to promote stablecoin use in Europe and among institutional clients, as detailed in the .

Analysts remain split in their outlook. J.P. Morgan kept a "Sell" recommendation, citing overvaluation despite better profitability, while Monness Crespi Hardt began coverage with a "Buy" rating and a $150 price target, suggesting a 52.6% potential upside, according to the

. TipRanks’ consensus rates the stock as a "Moderate Buy," with an average price target of $166.19—69.1% higher than current prices, as per the . Still, there are worries about shrinking margins. The RLDC (revenue less distribution costs) margin dropped to 39% in Q3, down 270 basis points from a year earlier, as distribution costs climbed alongside growing USDC balances, according to a .

Circle’s outlook points to ongoing investments in its platform and new partnerships. The company raised its 2025 "Other Revenue" forecast to $90–$100 million from the previous $75–$85 million and now expects adjusted operating expenses of $495–$510 million, higher than earlier projections, as stated in the

. CEO Jeremy Allaire highlighted the "rapidly growing adoption of USDC" and described Circle as a creator of the "next-generation Economic OS for the internet," according to the .

Regulatory developments in 2025 have brought more clarity for stablecoins, supporting Circle’s growth plans. Nonetheless, challenges remain. A quicker-than-anticipated reduction in Fed rates could slow reserve income growth, and intensifying competition from

and decentralized alternatives could pressure long-term profitability, according to an . Circle’s consideration of reversible stablecoin transactions for institutional clients—departing from the typical irreversibility of crypto—signals a shift toward the flexibility favored in traditional finance, which may help attract banks, as discussed in the .

Investors are expected to monitor Arc’s development closely, including the timeline for launching a native token and its integration with the Circle Payments Network. For now, Circle’s performance depends on maintaining USDC’s 29% market share while effectively managing distribution expenses and navigating regulatory challenges, as reported by

.

0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

Stellar News Today: C3.ai Faces AI Challenges While Stellar's Blockchain Thrives: Changing Currents in Technology

- C3.ai faces leadership turmoil, 54% stock drop, and legal claims over misleading growth statements amid $116.8M Q1 2026 net loss. - Stellar (XLM) gains traction with BRL stablecoin partnerships, tokenized energy projects, and 1B+ Q3 2025 transactions boosting institutional adoption. - Stellar's ecosystem expands via 37% developer growth, $562M RWA market, and IBM's integration of its security protocols for tokenized infrastructure. - Contrasting trajectories highlight shifting tech priorities: speculativ

Bitget-RWA2025/11/12 14:40
Stellar News Today: C3.ai Faces AI Challenges While Stellar's Blockchain Thrives: Changing Currents in Technology

Algorand Moves to Passwordless Security to Address Quantum Risks and Meet Regulatory Requirements

- Algorand launches passwordless login via Pera Wallet using FIDO2 standards to combat quantum threats and regulatory demands. - Industry trends show firms like AMI adopting post-quantum cryptography while Prisma AI develops AI-specific security tools. - Ledger explores NY IPO amid rising crypto storage demand, while BIO-key expands passwordless solutions in Middle East/Africa. - NIST/NCSC urge quantum-resistant algorithm migration, positioning passwordless tech as critical for financial/healthcare complia

Bitget-RWA2025/11/12 14:40
Algorand Moves to Passwordless Security to Address Quantum Risks and Meet Regulatory Requirements

Ethereum News Update: Connecting Crypto Enthusiasts and Card Game Fans: Funtico's EV2 Presale Transforms Web3 Entry

- Funtico launches EV2 presale, allocating 40% tokens to early buyers via crypto and credit cards. - EV2 blends sci-fi shooter mechanics with progression-driven gameplay, featuring five character classes and high-fidelity visuals. - Token deployed on Ethereum to leverage DeFi infrastructure, offering TICO bonuses for presale participants. - Flexible payments include ETH, USDT, BTC, and credit cards, incentivizing early adoption. - Phased rollout aims to build community engagement through tournaments and NF

Bitget-RWA2025/11/12 14:40
Ethereum News Update: Connecting Crypto Enthusiasts and Card Game Fans: Funtico's EV2 Presale Transforms Web3 Entry

XRP News Update: XRP ETF Approaches Debut While Profit-Taking Challenges $2.35 Support Level

- XRP's price surged 10% to $2.43 amid anticipation for its first spot ETF, with Canary's SEC filing signaling a potential Thursday launch. - Profit-taking by long-term holders spiked 240% since September, pushing daily realizations to $220M as prices retreated to $2.30. - Ripple's $125M SEC settlement and XRP Ledger's 99.999% uptime bolstered fundamentals, while a partnership with Mastercard/Gemini expands cross-border payment integration. - Competition from AI/meme tokens and liquidity shifts threaten XR

Bitget-RWA2025/11/12 14:40
XRP News Update: XRP ETF Approaches Debut While Profit-Taking Challenges $2.35 Support Level