Circle Internet Group Stock Jumps as USDC Stablecoin Circulation Soars

• Circle Internet Group exceeded adjusted EBITDA and revenue estimates in its first financial report since its June IPO.

• The crypto firm that issues the USDC stablecoin reported circulation jumped 90% over the past year.

• Circle said it expects to benefit from the recently enacted GENIUS Act.

Circle Internet Group (CRCL) shares jumped nearly 8% Tuesday as its first financial report since its initial public offering (IPO) came in better than expected on growing use of the USDC stablecoin.

The company that issues USDC reported second-quarter adjusted EBITDA of $126 million, more than $3 million above what analysts surveyed by Visible Alpha were looking for. Revenue gained 53% year-over-year to $658 million, also beating forecasts.

Circle noted that USDC circulation soared 90% year-over-year to $61.3 billion at the end of the quarter, and was up an additional 6.4% to $65.2 billion as of Aug. 10.

Co-founder and CEO Jeremy Allaire said the IPO in June “marked a pivotal moment—not just for our company, but for the broader adoption of stablecoins and the growth of the new internet financial system.” Allaire added that the company is seeing “accelerating interest in building on stablecoins and partnering with Circle across every significant sector of the financial industry.”

The company noted that the GENIUS Act passed by Congress and signed by President Donald Trump, which establishes a framework for the cryptocurrency sector, “strengthens Circle’s position as the leading regulated stablecoin issuer.”

Shares of Circle Internet Group recently were trading around $173—about 450% above their IPO price of $31 and 150% higher than their opening level of $69 in their debut June 5.

Read the original article on Investopedia