Circle shares surged over 11% in pre-market trading following a strong Q2 earnings report, which highlighted a 53% year-over-year revenue increase totaling $658 million. This growth was primarily driven by a 90% rise in the circulation of their USDC stablecoin, resulting in $634 million in interest from reserves. Additionally, Circle announced plans to launch its own layer-one blockchain, Arc, integrated with USDC as the native gas token, set to go live in public testnet this fall. However, the company reported a quarterly loss of $482 million, primarily due to costs associated with its recent IPO, including $424 million in stock-based compensation. Despite the robust performance and positive market conditions spurred by recent regulatory developments, some analysts expressed caution over Circle's net loss, advising a sell rating on the stock, projecting a price target significantly lower than its current value.

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