Circle’s Rapid USDC Expansion Fails to Boost Struggling Shares Amid Rising Expenses and Divided Analyst Opinions
- Circle reported strong Q3 2025 results with $73.7B USDC growth but stock fell 5.4% premarket as costs rise and analysts split. - Revenue surged 66% to $740M while net income jumped 202% to $214M, yet RLDC margins dropped 270 bps to 39% amid expanding balances. - Arc blockchain's public testnet attracted 100+ institutional participants, with partnerships announced with Deutsche Börse and Visa to expand stablecoin adoption. - Analysts remain divided: J.P. Morgan "Sell" vs. Monness Crespi "Buy" at $150, whi
Circle Internet Group (CRCL) delivered strong results for the third quarter of fiscal 2025, fueled by rapid expansion in its
The earnings release also underscored Circle’s strategic move into institutional finance with its Arc blockchain platform. The company rolled out a public testnet for Arc, drawing over 100 participants from the banking, fintech, and digital asset sectors, as reported by
Analysts remain split in their outlook. J.P. Morgan kept a "Sell" recommendation, citing overvaluation despite better profitability, while Monness Crespi Hardt began coverage with a "Buy" rating and a $150 price target, suggesting a 52.6% potential upside, according to the
Circle’s outlook points to ongoing investments in its platform and new partnerships. The company raised its 2025 "Other Revenue" forecast to $90–$100 million from the previous $75–$85 million and now expects adjusted operating expenses of $495–$510 million, higher than earlier projections, as stated in the
Regulatory developments in 2025 have brought more clarity for stablecoins, supporting Circle’s growth plans. Nonetheless, challenges remain. A quicker-than-anticipated reduction in Fed rates could slow reserve income growth, and intensifying competition from
Investors are expected to monitor Arc’s development closely, including the timeline for launching a native token and its integration with the Circle Payments Network. For now, Circle’s performance depends on maintaining USDC’s 29% market share while effectively managing distribution expenses and navigating regulatory challenges, as reported by
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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