Circle Misses Q2 Revenue as Crypto Slump Drags USDC Use

Circle reported Q2 revenue of $701 million (up 7%) vs a $712 million consensus, with net income of $48 million vs. an expected $43 million. The miss comes as crypto markets weaken and USDC circulation slows, with about $73.4 billion USDC outstanding as of June 30—up from a year ago but below March peak. Morgan Stanley downgraded Circle to underweight amid headwinds, and concerns persist about Coinbase revenue sharing and competition, even as Circle expands with new tokens and IBM patent acquisitions. Circle shares have fallen roughly 62% over the past year.