Circle Internet Group has priced a secondary offering of 10 million Class A shares at $130 per share, marking a 320% premium to its June IPO price of $31, as the stablecoin issuer capitalizes on explosive investor demand following record USDC circulation growth and strong Q2 earnings results.
Circle Internet Group has announced the pricing of its secondary public offering at $130 per share for 10 million Class A common shares, representing more than a four-fold increase from the company's initial public offering price of $31 just two months ago. The announcement, made August 14, follows the stablecoin issuer's first quarterly earnings report as a public company, which showed record revenue growth and explosive USDC adoption.
The offering consists of 2 million primary shares sold by Circle itself and 8 million shares offered by existing stockholders. Underwriters have been granted a 30-day option to purchase an additional 1.5 million shares, potentially bringing the total offering to 11.5 million shares. The closing of the offering is expected to occur on August 18, 2025, with JPMorgan, Citigroup, and Goldman Sachs serving as joint lead active bookrunners.
Dramatic Stock Performance Since Market Debut
Circle's stock performance since its NYSE debut has been nothing short of extraordinary. The company initially priced its IPO at $31 per share in June 2025, above the expected range of $27-$28, giving it a market valuation of $6.8 billion. However, shares exploded on the first day of trading, soaring as much as 235% to close at $83, delivering what analysts called the biggest two-day "pop" since 1980.
The stock reached its all-time high of $298.99 on June 23, representing a nearly 865% gain from the IPO price. Despite recent volatility, shares have maintained substantial gains, trading around $139 following the secondary offering announcement. The dramatic price appreciation has made Circle one of the standout IPO success stories of 2025, with the stock gaining approximately 350% since going public.
Circle's IPO performance left an estimated $1.72 billion "on the table," according to Fortune analysis, ranking as the seventh-largest underpricing in IPO history. The company could have raised significantly more capital had it priced shares closer to market demand, but the dramatic first-day gains generated substantial attention and validated investor appetite for cryptocurrency-related businesses.
Strong Fundamentals Drive Investor Confidence
The secondary offering comes on the heels of Circle's impressive Q2 2025 earnings results, which demonstrated the company's ability to capitalize on growing stablecoin adoption. Circle reported total revenue of $658 million for the second quarter, representing a 53% year-over-year increase that exceeded analyst expectations of approximately $645 million.
USDC circulation grew 90% year-over-year to $61.3 billion at quarter-end and has continued expanding to $65.2 billion as of August 10, 2025. This growth directly translates to higher revenue for Circle, as the company earns interest on the U.S. Treasury securities and other short-term government obligations that back USDC reserves.
Reserve income, which constitutes the majority of Circle's revenue, increased 50% year-over-year to $634 million, driven by the 86% growth in average USDC circulation. The company's adjusted EBITDA grew 52% year-over-year to $126 million, demonstrating strong operational leverage as the business scales.
Despite reporting a net loss of $482 million for Q2, the deficit was primarily attributed to non-cash IPO-related charges totaling $591 million, including $424 million in stock-based compensation and $167 million from convertible debt revaluation linked to the company's rising share price.
Strategic Initiatives Fuel Growth Trajectory
Circle has launched several strategic initiatives that position the company for continued expansion in the digital finance ecosystem. The company introduced Circle Payments Network in May 2025, an innovative platform for financial institutions to use stablecoins for payments, with over 100 institutions currently in the pipeline.
The company also announced Arc, a new Ethereum Virtual Machine-compatible Layer-1 blockchain designed specifically for stablecoin finance, payments, and capital markets applications. Arc will use USDC as its native gas token, allowing users to pay transaction fees in the stablecoin, and features sub-second settlement finality with opt-in privacy controls.
Circle has expanded strategic partnerships with major financial institutions and digital asset platforms, including enhanced relationships with Binance and OKX, two of the world's largest cryptocurrency exchanges. The company has also partnered with traditional financial services providers like Corpay, FIS, and Fiserv to integrate USDC into existing payment infrastructure.
Market Position and Competitive Landscape
Circle's market position as the issuer of USDC, the second-largest stablecoin by market capitalization, provides significant competitive advantages in the rapidly growing digital payments sector. USDC currently holds approximately 26% of the dollar-backed stablecoin market, trailing only Tether's USDT, which maintains about 67% market share according to CryptoQuant data.
The regulatory environment has become increasingly favorable for stablecoin issuers, with the recent passage of the GENIUS Act providing clearer regulatory frameworks for digital asset companies. Circle CEO Jeremy Allaire noted that since the IPO and the Act's passage, "the number of major financial institutions that are engaging with us in banking, payments, capital markets and so many categories has surged."
The company's transparent reserves, regulatory compliance approach, and established banking relationships position it well to capture institutional adoption of stablecoins. Circle supports wireless transactions for minting and redeeming USDC in more than 185 countries, providing global reach for cross-border payments and financial services.
Investor Appetite Reflects Sector Momentum
The successful pricing of the secondary offering at a significant premium reflects continued strong investor appetite for cryptocurrency-related businesses, particularly those with regulated business models and clear revenue streams. Circle's business model generates predictable income from interest earned on reserve assets, providing stability compared to more volatile cryptocurrency trading businesses.
Seaport Global analyst Jeff Cantwell recently initiated coverage on Circle with a buy rating, projecting that the total stablecoin market could reach $2 trillion over the longer term from approximately $260 billion today. Cantwell expects Circle's revenue to grow 25% to 30% annually as stablecoin adoption accelerates globally.
The secondary offering provides Circle with additional capital for expansion while allowing early investors and employees to realize gains from the company's remarkable stock performance. The company indicated it will use proceeds from its 2 million share portion for general corporate purposes, while existing shareholders will receive proceeds from their 8 million shares.
Stock Reaction and Market Dynamics
Circle shares initially declined 6% in after-hours trading following the secondary offering announcement, falling to approximately $154. The reaction reflects typical market dynamics when companies announce additional share issuance, which can dilute existing shareholder ownership and increase the supply of tradeable shares.
However, the stock has demonstrated remarkable resilience since its IPO, maintaining substantial gains despite periods of volatility. Trading volumes have remained elevated, indicating continued investor interest in the company's growth story and exposure to the expanding stablecoin ecosystem.
Market analysts note that Circle's valuation metrics remain elevated compared to traditional financial services companies, with the stock trading at approximately 24 times 2025 revenue based on current projections. However, supporters argue that the company's unique market position and growth prospects justify premium valuations.
Regulatory and Competitive Outlook
The regulatory landscape for stablecoins continues to evolve in Circle's favor, with increasing recognition of the utility and importance of dollar-backed digital currencies. The company's proactive approach to compliance and regulatory engagement has positioned it as a preferred partner for traditional financial institutions exploring digital asset integration.
Competition in the stablecoin market is intensifying, with other financial institutions considering launching their own digital dollar products. However, Circle's first-mover advantage, established infrastructure, and deep compliance expertise provide significant barriers to entry for potential competitors.
The company's expansion into new blockchain networks and financial applications through initiatives like Arc demonstrates its commitment to maintaining technological leadership in the rapidly evolving digital finance landscape. As traditional finance continues integrating with blockchain technology, Circle's platform approach positions it to capture value across multiple use cases.
The secondary offering represents a significant milestone for Circle as it transitions from a private startup to a established public company capable of accessing capital markets for growth financing. With strong fundamentals, expanding market opportunities, and continued regulatory clarity, Circle appears well-positioned to capitalize on the ongoing transformation of global financial infrastructure.