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

XRP News Today: Investors Consider XRP ETF Prospects Versus Presale Options

- XRP consolidates between $2.39-$2.41 in late 2025 amid mixed market sentiment, with analysts debating its breakout potential and $1.90 support level significance. - Pending XRP ETF approvals could inject $3-8B in capital, pushing price toward $2.50-$2.80 if SEC clears Bitwise, Franklin Templeton, and 21Shares applications. - XRP defies broader crypto outflows with $28M weekly inflows and $2.4B AUM, contrasting Bitcoin/Ethereum's $1.37B combined outflows despite subdued open interest at $3.36B. - Presale

Bitget-RWA2025/11/13 23:34
XRP News Today: Investors Consider XRP ETF Prospects Versus Presale Options

Bitcoin News Update: Crypto Takes a New Turn as DeFi's Core Strengths Surpass the Hype-Fueled Phase

- Crypto market shifts focus to DeFi fundamentals as altcoins like Plug Power , Hyperion, and Mutuum show strong financial growth and innovation. - Plug Power reports $177M Q3 revenue and $370M funding, targeting EBITDAS-positive results by mid-2026 despite $363.5M net loss. - Hyperion DeFi achieves $6.6M net income via HYPE token treasury, leveraging Hyperliquid's 70ms block time for transparent trading and dApps. - Mutuum's $18.7M presale and 250% token price surge highlight DeFi lending growth, while Bi

Bitget-RWA2025/11/13 23:34
Bitcoin News Update: Crypto Takes a New Turn as DeFi's Core Strengths Surpass the Hype-Fueled Phase

ZEC Rises 5.93% in 24 Hours as Privacy Coins Experience a Surge

- Zcash (ZEC) surged 5.93% to $524.73 on Nov 13, 2025, despite a 10.98% weekly decline, driven by long-term gains of 32.18% monthly and 850.45% yearly. - Cypherpunk Technologies (formerly Leap Therapeutics) rebranded to focus on ZEC, purchasing 203,775 ZEC ($50M) or 1.25% of circulating supply, with Winklevoss Capital leading a $58.88M funding round. - The firm restructured leadership, appointing Khing Oei and Will McEvoy, and rebranded its ticker to CYPH , emphasizing ZEC’s privacy-centric zk-SNARKs techn

Bitget-RWA2025/11/13 23:24

XRP News Update: Regulatory Hurdles Challenge XRP’s ETF Surge—Is $10 Within Reach?

- XRP gains traction as Canary Capital's ETF generates $46M in debut trading, signaling institutional interest. - Crypto.com CEO predicts $8B in ETF inflows for XRP, highlighting its potential as a regulated crypto investment cornerstone. - mXRP liquid-staking product on BNB Chain adds yield-generating utility, boosting demand among DeFi users. - Technical indicators show XRP trading above key EMA but face volatility risks amid declining open interest. - Regulatory uncertainties persist as SEC's XRP classi

Bitget-RWA2025/11/13 23:20