Circle's Stock Surges Over 35% Following Strong Earnings Report; USDC Dominates Stablecoin Market Share

Circle (CRCL) experienced a significant boost in its stock value, climbing approximately 30% to around $80 per share after the release of its financial results. The company closed the trading day at $83.33, marking a substantial increase of 35.47%. This surge followed Circle's disclosure of $770 million in fourth-quarter revenue and reserve income, representing a 77% year-over-year increase. Additionally, the company projected a compound annual growth rate of 40% for USDC circulation in the coming years.

William Blair maintained an "outperform" rating on Circle's stock, highlighting the company as a rare high-quality infrastructure provider in the cryptocurrency space. The report indicated that Circle's revenue-less-distribution-cost profit margin exceeded 40% in the fourth quarter, partly due to approximately 18% of the average USDC circulation being directly held on Circle's platform. The company also reported an adjusted EBITDA of $167 million.

#crypto #blockchain #news