Despite releasing strong quarterly results after its listing, Circle, a stablecoin issuer, saw its stock price drop in after-hours trading due to news of additional share sales.
On the 12th (local time), Circle announced that its second-quarter revenue surged 54% year-on-year to $658 million (approximately 948 billion won). Immediately after this performance announcement, the stock price rose slightly by 1.3% during regular trading hours but fell more than 5% in after-hours trading due to the announced plan for new stock issuance.
Circle plans to publicly offer 2 million new shares through this transaction, and existing shareholders will separately sell 8 million shares. This is a measure taken advantage of the significant stock price increase since its listing on the New York Stock Exchange in June, with the stock price still around 400% higher compared to the listing time.
Circle is the issuer of USDC, a representative stablecoin backed by dollar-based assets. Most of this quarter's revenue came from interest income from U.S. Treasury bonds, amounting to $634 million (approximately 913 billion won). The USDC circulation increased by 90% year-on-year to $61.3 billion (approximately 88.4 trillion won) and further increased by 6.4% as of August 10th.
The 'Other Revenue' category also grew rapidly. The sector, which includes non-core businesses such as CPN platforms and developer tools, recorded revenue of $24 million (approximately 34.7 billion won), a 252% increase from the same period last year. Particularly, demand for technical platforms supporting stablecoin transfers between financial institutions drove the revenue increase. Along with this performance announcement, Circle also unveiled a new blockchain project called 'Arc'. Arc's strategy is to reduce price volatility risks experienced by existing cryptocurrency-based networks by setting transaction fees in dollar terms.
However, the quarterly results recorded a net loss of $482 million (approximately 694 billion won). This is due to the reflection of a one-time accounting cost of $591 million (approximately 851 billion won) related to the listing. The adjusted EBITDA was calculated at $121 million (approximately 174 billion won), a 52% increase, and is analyzed to have maintained a healthy cash flow.
Jeremy Allaire, Circle's CEO, said, "In our first performance since listing, we were able to prove the platform's solid growth momentum with partners across various industries." Circle forecasts that other sector revenues in the second half of this year will reach $75-85 million (approximately 108-122 billion won), and expects the USDC's annual growth rate to be around 40% in the long term. This is expected to provide a stable basis for future revenue.
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