Circle shares jump as earnings beat offsets revenue miss, Arc blockchain gains Wall Street backing
Circle reported mixed second-quarter financial results, beating earnings estimates despite a slight revenue miss. The company is preparing to launch its Arc blockchain network, which has secured support from major financial institutions like BlackRock and Mastercard.
Why it matters
The institutional backing of Circle's Arc network signals a growing trend of traditional finance firms integrating blockchain infrastructure for tokenized assets.
The company posted adjusted earnings of 18 cents a share, beating analysts' consensus estimate of 16 cents, while revenue and reserve income rose 7% from a year earlier to $701 million, missing expectations of $712 million. Net income from continuing operations reached $48 million, topping analysts' estimates of $43 million, while adjusted EBITDA climbed 8% to $143 million.
USDC, Circle's dollar-backed stablecoin, continued to expand. Circulation reached $73.3 billion at the end of June, up 19% from a year earlier, but down from its 2026 peak of nearly $80 billion. Onchain transaction volume surged 151% to $14.8 trillion during the quarter.
"Our quarterly financial results reflect the current rate environment and a crypto market that has slowed," CEO Jeremy Allaire said in a statement. "But the institutions using USDC today, like BlackRock, BNY and Standard Chartered aren't piloting, they are expanding."
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