Circle's Q2 earnings beat estimates one day after Morgan Stanley downgraded the stock, sending shares higher. The largest U.S. stablecoin issuer posted EPS of $0.21, above the $0.17 consensus, while revenue rose 20% year over year to $694 million, slightly missing the $715 million forecast. The market focused on Arc, Circle's blockchain network for stablecoin payments, tokenized assets, cross-border settlement and on-chain finance. Circle nearly doubled its full-year “other revenue” guidance to $310–330 million, with Arc as the main driver. Earlier this year, Circle raised $222 million through an ARC token presale at a $3 billion valuation. The report follows Morgan Stanley’s price target cut from $106 to $38 on shrinking USDC circulation. According to CoinDesk and Bloomberg, the earnings refocused attention from stablecoin concerns to Arc as a new growth story.
Circle delivered a sharp rebuttal just one day after Morgan Stanley cut its rating. The largest U.S. stablecoin issuer beat second-quarter earnings estimates, sending the stock higher, according to CoinDesk and Bloomberg. The trigger: a major upgrade to the revenue outlook for Arc, Circle's blockchain network built for stablecoin payments. The market is buying the Arc story, not the steady-state numbers.
Circle reported second-quarter earnings per share of $0.21, beating the $0.17 consensus. Revenue rose 20% year over year to $694 million, just below the $715 million expected. Earnings beat, revenue slightly missed, and attention shifted to Arc. Circle nearly doubled its full-year “other revenue” guidance to $310–330 million, with Arc as the main driver.
Arc is a blockchain network Circle built for stablecoin payments and financial applications, aimed at tokenized assets, cross-border settlement and on-chain finance. Earlier this year, Circle raised $222 million through the ARC token presale at a $3 billion valuation.
The timing is sharp. Morgan Stanley had just cut its Circle price target from $106 to $38, citing shrinking USDC circulation. That bearish call collided with a report that pulls the market's attention from concerns about the stablecoin core to Arc as a fresh growth curve.
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