Circle's USDC Circulation Doubles, But Costs Are Soaring

Circle Internet Group (NYSE:CRCL) stock slid after it reported third-quarter results on Wednesday.

The company reported a quarterly revenue growth of 66% year-over-year (Y/Y) to $739.76 million, topping the analyst consensus estimate of $700.53 million.

The quarterly adjusted EPS of 64 cents beat the analyst consensus estimate of 18 cents.

Also Read: Circle, Galaxy Are The Only Crypto IPOs In Profit As eToro Sinks 40% Since Debut

Revenue Drivers: Stablecoin Reserves and Platform Services

Circle Internet Group primarily earns interest income from the reserves backing its stablecoins, like USDC. The company also generates revenue from other sources, including marketplace commissions, payment processing, and fees for its software and platform services.

Reserve income increased 60% Y/Y to $711.24 million, primarily from the 97% growth in average USDC in circulation, partially offset by a 96 bps ...

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Circle's USDC Circulation Doubles, But Costs Are Soaring

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