USDC Issuer Circle’s Stock Plummets 12% Despite Blockbuster Q3 Earnings as Rate Cut Fears Loom
Circle Internet Financial (CRCL) shares plunged 12.2% on November 12 despite reporting exceptional Q3 2025 results. The stablecoin leader posted $740 million in revenue - a 66% YoY increase that beat Wall Street's $706.7 million forecast, with EPS of $0.64 far exceeding the $0.22 consensus.
USDC's market cap surged 108% to $73.7 billion, showcasing strong ecosystem adoption. Analysts attribute the sell-off to growing expectations of Fed rate cuts by December 2025, which may compress yields on Treasury reserves backing USDC. Circle generates substantial revenue from these low-risk instruments.
Revenue Less Distribution Costs grew 55% to $292 million (39% margin), while distribution expenses ROSE 74% to $448 million. Market participants are pricing in potential declines in Circle's interest income as monetary policy potentially eases in 2025.
