Circle Internet Group's stock rose 5% in premarket trading after the USDC issuer beat profit estimates despite missing its revenue target, with USDC supply up 19% year-over-year and euro-stablecoin EURC now commanding 65% of its market. Morgan Stanley set a bearish price target while Bernstein projects further upside.
Circle Internet Group (NYSE: CRCL) shares jumped 5% in premarket trading on Wednesday after the USDC stablecoin issuer's second-quarter profits beat Wall Street's forecasts, even though revenue fell short of expectations. The company reported $701 million in revenue for the quarter, up 7% year-over-year but below analysts' $713 million estimate. Adjusted earnings, however, came in at 18 cents a share against a forecast of 16 cents.
USDC's supply itself kept expanding, ending Q2 at $73.3 billion, up 19% year-over-year. On-chain transfer volume, meanwhile, rose 150% to $14.8 trillion. Circle CEO Jeremy Allaire attributed the results to a slowing crypto market and the current rate environment, but said "near-term activity tells a different story".
Arc blockchain gains institutional backers
More than 100 institutions, including BlackRock, BNY Mellon, DTCC, and Standard Chartered, are building on Circle's Arc blockchain, designed for tokenized assets, payments, and an agentic economy. The chain is set to launch publicly on September 16. Circle also picked up a federal trust bank charter from the OCC and a state-level license from New York.
Euro stablecoin dominance widens as Tether retreats
Circle's euro-pegged stablecoin, EURC, has pushed the company's share of the euro stablecoin market to 65%, according to Token Terminal data, with Société Générale second at 16%. Yet EURC's own supply grew just 0.11% year-over-year to a $455.8 million market cap, concentrated mostly on Ethereum, Solana, and Base. The moat has widened partly because Tether opted not to seek a MiCA license, arguing the rules were risky and designed to protect the upcoming digital euro.
Morgan Stanley sets bearish target, others see upside
Morgan Stanley downgraded CRCL stock with a bearish $38 price target that implies 39% downside from the current $63.5, citing slow USDC supply growth and competition in tokenized money market funds that could affect Circle's revenue. Yet the Wall Street consensus target of $104 hints at 64% upside potential. Bernstein goes further, projecting CRCL could rally as high as $140.
Source: AMBCrypto
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