Summary
- Circle Internet Group reported fourth-quarter revenue of $770 million and EPS of $0.43, far above market expectations, sending CRCL shares up 35.47%.
- Fourth-quarter USDC circulation surged 72% to $75.3 billion, boosting interest income from reserve management, according to the analysis.
- Following the strong results, shares of crypto-related companies such as Strategy, Mara Holdings, and Coinbase, along with the price of Bitcoin, rose in tandem.
Forecast Trend Report by Period
USDC circulation jumps, up 35% in a day
Coinbase, Strategy also gain
Stablecoin issuer Circle Internet Group (ticker: CRCL) posted an “earnings surprise,” sending crypto-related stocks sharply higher across the board.
On the 25th (local time), Circle closed up 35.47% at $83.14 on the New York Stock Exchange. Buying accelerated after the company’s fourth-quarter results, released just before the opening bell, far exceeded market expectations.
Circle’s fourth-quarter revenue came in at $770 million, up 77% year on year. Earnings per share (EPS) were $0.43. That is 168.75% above the consensus estimate of $0.16.
Behind the strong results was the dollar-backed stablecoin USDC. According to Circle, USDC circulation in the fourth quarter surged 72% from a year earlier to $75.3 billion. To maintain USDC’s value, Circle invests an equivalent amount of dollar reserves in safe assets such as U.S. Treasuries. With circulation expanding far more than expected, interest income from managing those reserves also rose, analysts said.
The upbeat sentiment spread broadly to crypto exchanges and related companies. Bitcoin investment specialist Strategy and Mara Holdings rose 8.86% and 6.46%, respectively. Coinbase, a key Circle partner, jumped 13.52%, also buoyed by expectations surrounding the rollout of 24-hour stock trading services.
Bitcoin also strengthened. On Binance, the world’s largest crypto exchange, Bitcoin traded around $68,200, up about 5% on the day.
Beomjin Jeon forward@hankyung.com
Korea Economic Daily
hankyung@bloomingbit.ioThe Korea Economic Daily Global is a digital media where latest news on Korean companies, industries, and financial markets.
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