Circle Chief Financial Officer Jeremy Fox-Geen said on Tuesday's earnings call that the company has no plans to introduce quarterly dividends.
Asked whether the company would pay quarterly dividends in the near term, Fox-Geen replied: "No, we don't have that plan." He went on to explain the rationale against the broader industry shift: "As the whole world evolves from legacy systems to a new type of internet financial services built on blockchain technology, we are facing a huge opportunity to become a leading internet platform company."
"As we have consistently emphasized, we want to maintain a strong balance sheet to ensure we can continue investing in this opportunity regardless of market cycles, and also to be well-positioned to seize major opportunities when they arise," he said.
The CFO added: "We firmly believe that retaining a strong balance sheet is the right approach, and we believe that investing capital in the platform will deliver far higher returns to shareholders than paying quarterly dividends."
"Fundamentally, we are a growth stock with extremely high future market growth potential, not a capital-return stock that buys back shares or pays dividends to shareholders at this stage," Fox-Geen concluded.