Circle Stock Drops Following Major Secondary Offering
Circle Internet Group’s shares experienced a decline later in the day following the update of a plan to issue up to 10 million shares. Out of these, only 2 million are new shares created by the company. The remaining 8 million are being offered by insiders aiming to liquidate their holdings. Additionally, there’s a provision for underwriters to acquire another 1.5 million if there is sufficient buyer interest, potentially elevating total proceeds beyond half a billion dollars.
Positive Earnings Diminished by Share Offering
Earlier in the day, the outlook was optimistic. Circle had published its inaugural earnings report since going public, revealing $658 million in revenue and $126 million in adjusted EBITDA. Both figures reflected over a 50 percent increase compared to the same period last year. However, these robust results were overshadowed by a net rekt of $482 million, primarily associated with IPO-related expenses. Investors decided not to stay for the celebration.
Circle down 6% after hours following the news of a 10m share offer (2m shares from the company and 8m from existing shareholders including management). Here’s the list of all sellers: pic.twitter.com/QNCDoHLOTy
— Omar (@TheOneandOmsy) August 12, 2025
USDC Continues to Rise
A key driver of Circle’s revenue expansion is the increasing circulation of its stablecoin, USDC. It concluded the quarter at $61.3 billion and hit $65.2 billion in early August. That’s a staggering 90 percent increase year-over-year. These figures demonstrate growing adoption of USDC across various financial applications, including payments and trading.
DISCOVER: 9+ Best High-Risk, High-Reward Crypto to Buy in August2025
Company Raises Funds, Insiders Receive Market fluidity
Circle’s share of the funds raised will be allocated toward operational costs, growth strategies, and possibly acquisitions. This is not merely a cash influx. Simultaneously, it offers early investors an opportunity to secure some profits after a significant surge since the IPO. The equilibrium between long-term planning and immediate available volume is evident.
Regulatory Approval Remains Important
Circle’s progress is further supported by recent regulatory advancements. The GENIUS Act has provided stablecoin issuers like Circle with a more solid legal framework in the United States. This has rendered USDC a more appealing choice for institutions that had previously been hesitant. Despite market uncertainties, having supportive policies is advantageous.
Stock Still Elevated Since IPO
In spite of the decline, Circle’s stock remains significantly higher than its initial listing price. Since June, it has soared over 400 percent. Investors have capitalized on the growth of USDC and the renewed interest in digital currency infrastructure. A single downturn doesn’t negate several months of positive momentum.
DISCOVER: Next 1000X Crypto: 10+ Crypto Tokens That Can Hit 1000x in 2025
Analysts Have Diverse Opinions
Perspectives on Wall Street vary. Out of 16 analysts monitoring the stock, recommendations span across Buy, Long-term holding, and Sell categories. Some express optimism regarding Circle’s initial advantage and its expanding regulatory security. Others exhibit caution, highlighting competition from major players like PayPal and Amazon entering the stablecoin sector.
Future Outlook
Circle is now tasked with demonstrating its capability to sustain this growth rate. The next challenge will be how effectively it deploys the capital it has raised and whether USDC can continue its expansion. Upcoming initiatives such as the Arc distributed ledger and the Circle Payments Platform are on the schedule. Whether these strategies will yield long-term benefits remains uncertain.
Circle has had an extraordinary year, but this week’s share sell-off serves as a reminder that growth comes with its own challenges. Investors are now eager to see what the company can truly achieve with its momentum.
DISCOVER: 20+ Next Crypto to Explode in 2025
Join The 99Bitcoins Announcement Discord Here For The Latest Market Updates
Key Takeaways
- Circle’s shares fell after disclosing a 10 million share offering, with most of the shares being sold by insiders cashing out.
- Despite solid earnings reporting $658 million in revenue and $126 million in adjusted EBITDA, Circle showed a $482 million net wrecked linked to IPO expenses.
- USDC circulation has grown by 90% year-over-year, surpassing $65 billion, driving much of Circle’s revenue increase.
- The share offering provides a balance between new funding for growth and liquidity for insiders, enabling Circle to have runway while early investors realize profits.
- The long-term success of Circle now relies on how it utilizes the funds and whether USDC can continue to gain traction among institutions.
The post Circle Stock Slides After Big Secondary Offering appeared first on 99Bitcoins.
