Circle Beats Fourth-Quarter Estimates as 72% USDC Supply Growth Sends Shares Up 20%

Circle Internet Group issues USDC, the world's second-largest U.S. dollar stablecoin, and its business is closely tied to interest rates, stablecoin usage and regulatory developments. Cathie Wood's ARK Invest has increased its holdings again, reflecting a major growth fund's bet on digital-dollar infrastructure and Circle's future expansion.

Circle reported first-quarter earnings on May 11, 2026, posting earnings per share of 21 cents, above market expectations. ARK Invest bought 41,904 shares that day through ARKK, ARKW and ARKF, spending $5.5 million. Circle shares closed 16% higher at $131.76, their highest close since March 18. It was ARK's first increase in its holdings since spending $16.3 million on March 24.

Circle, the issuer of USDC, relies heavily on the stablecoin’s circulation and income from its reserve assets. As stablecoins expand into cross-border settlement, corporate payments and on-chain finance, Circle’s fiscal first-quarter 2026 results offer a key gauge of USDC’s growth momentum and the company’s ability to expand into blockchain infrastructure and machine-to-machine payments.

Circle reported that USDC circulation rose to $77 billion in its fiscal first quarter of 2026, while on-chain transaction volume increased 263% from a year earlier. Revenue, however, fell short of market expectations. The company also said the token for its Arc blockchain raised $222 million in a presale and launched Agent Stack to serve demand for autonomous transactions and payments by AI agents. Its shares surged nearly 16% after the results were released.

Circle issues the U.S. dollar-backed stablecoin USDC and earns most of its revenue from interest generated by the reserve assets backing the token. As stablecoins increasingly enter payments and financial markets, Circle’s profitability has become a key gauge of USDC adoption and the digital-asset industry’s development.

Circle reported earnings per share (EPS) of $0.43 for the fourth quarter of 2025, above Wall Street’s estimate of $0.35 and about 23% ahead of expectations. Investors bet that stablecoin demand would continue to grow after the results, sending Circle shares up more than 15% at one point in U.S. premarket trading.

Circle issues USDC, the world’s second-largest U.S. dollar stablecoin, and earns most of its revenue from interest on reserves held in cash and short-term U.S. Treasuries. Growth in USDC circulation therefore directly boosts revenue. Circle is developing Arc as an L1 network for payments, foreign exchange and AI-agent micropayments, a key test of whether it can evolve from an interest-driven business into a network platform.

Circle reported fourth-quarter 2025 revenue of $770 million on February 25, 2026, up 77% from a year earlier, and net income of $133 million. Its shares jumped more than 20% intraday. On May 11, it also announced a $222 million presale of the ARC token at a $3 billion valuation. A beta version of the Arc mainnet is scheduled to launch later in the year, with Agent Stack and micropayments targeting AI-agent transactions.

Circle issues USDC, which is pegged one-to-one to the US dollar, and earns most of its revenue from interest on reserve assets. With interest rates remaining elevated and tokenized markets expanding, its role is shifting from a crypto trading tool to payment and settlement infrastructure. Clear Street said the value of tokenized assets grew from about $1.5 billion in early 2023 to roughly $26.5 billion in March 2026.

As of March 16, 2026, Circle shares had risen more than 100% over one month. The stock gained 8% that day to $124.37 and was up about 49% year to date, while Bernstein had set a $190 price target. A March 13 report said Aon was piloting stablecoin premium payments with Coinbase and Paxos, while Wells Fargo had filed a trademark application for “WFUSD” covering trading, payments, wallets and custody.

USDC is a stablecoin issued by Circle and backed by U.S. dollar assets. It is widely used for crypto trading, cross-border payments and capital preservation. Its market capitalization approaching a record high not only signals rising demand for onchain dollars but may also shed light on capital flows from the United Arab Emirates and pressure in Dubai’s property market.

As of July 20, 2026, USDC’s circulating supply had risen to about $79.2 billion, leaving it roughly $800 million short of the $80 billion threshold. An analyst said most of the recent increase came from the UAE, where capital flight—particularly amid turmoil in Dubai’s property market—has driven a surge in local over-the-counter (OTC) demand.

Circle issues the U.S. dollar stablecoin USDC, which briefly lost its peg during the collapse of Silicon Valley Bank in 2023. As stablecoins increasingly become core tools for cross-border payments and onchain finance, Circle is evolving from a single-product issuer into a financial infrastructure provider spanning payments, settlement and blockchain networks.

Circle’s 2025 results showed that year-end USDC circulation rose 72% from a year earlier to $75.3 billion, helping lift full-year total revenue by 64% to $2.7 billion. Quarterly transaction volume approached $12 trillion, up 247% year over year. The testnet for its Arc blockchain is progressing smoothly, with the mainnet expected to launch in 2026.