Circle’s Second-quarter revenue and reserve income jumped 53% year-on-year to $658 million, beating the analysts’ consensus estimate of $645 million, as per Koyfin data.
Circle Internet Group, Inc. (CRCL) on Tuesday announced the launch of Arc, a new Layer-1 network tailored for enterprise use in digital finance. The network is designed to handle tasks like stablecoin payments, currency exchange, and other capital markets activities.
Arc will run on an Ethereum Virtual Machine (EVM)-compatible architecture and feature USD Coin (USDC) as its primary transaction gas token. Arc is expected to enter public testnet later this fall. While Arc will become integrated into Circle’s ecosystem, the company emphasized that its current support for other blockchain partners will also continue.
Circle Internet stock traded over 11% higher in Tuesday’s premarket. On Stocktwits, retail sentiment around the stock jumped to ‘bullish’ from ‘bearish’ territory in 24 hours amid ‘low’ message volume levels.
A bullish user remarked that stablecoins are the future.
Another user commended the company’s earnings.
Circle issues the stablecoins USDC and EURC, whose prices are tied to the U.S. dollar and the Euro, respectively.
In its first earnings report after going public, Circle Internet said its total revenue and reserve income jumped 53% year-on-year (YoY) to $658 million, beating the analysts’ consensus estimate of $645 million, as per Koyfin data.
Reserve Income increased 50% YoY to $634 million, primarily from the 86% growth in average USDC in circulation. USDC in circulation grew 90% YoY to $61.3 billion at quarter end, and has grown an additional 6.4% to $65.2 billion as of August 10. Loss per share of $0.43 also came in better than the consensus estimate of a loss of $0.81.
Circle Internet stock has gained over 93% since its listing in July.
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