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Circle Shares Soar After Earnings Beat as USDC Growth Swells Reserve Income

Regulatory tailwinds met a potential hurdle from a Senate draft that could curb yield-sharing with exchanges.

Overview

  • Circle reported Q4 revenue of $770 million, up 77% year over year, with $733 million from reserve income, EPS of $0.43 beating $0.16 estimates, adjusted EBITDA of $167 million, and net income of $133 million.
  • USDC in circulation climbed 72% to $75.3 billion as on‑chain transaction volume reached $11.9 trillion, a 247% increase.
  • Shares of Circle Internet Group jumped more than 30% on Wednesday following the results, after earlier double‑digit premarket gains.
  • Circle secured conditional OCC approval to establish a national trust bank and deepened integrations with partners including Visa, Intuit, and Polymarket.
  • The GENIUS Act’s federal framework supported adoption, while analysts flagged interest‑rate sensitivity and Senate CLARITY Act draft language that could limit exchange rewards and yield‑sharing.