Circle shares surged over 30% after the second-largest stablecoin’s issuer reported fourth-quarter profitability that exceeded expert forecasts and stated that the quantity of USDC in circulation increased by 72% in the previous year.
According to the firm, total revenue increased 77% from the previous quarter of the year to $770 million, primarily from income from reserves supporting the token.
The net income increased more than 40 times to $133.4 million, or 43 cents per share. According to FactSet statistics, analysts had predicted 16 cents per share.
Despite months of declines in the broader cryptocurrency market, Circle’s earnings serve as a reminder of the stability of the stablecoin industry. The tokens, whose value is based on a physical asset like the dollar, are being used more and more in international payment systems in addition to cryptocurrency exchanges.
According to the company, as of February 20, 55 financial institutions have enrolled in its Circle Payments Network (CPN), and an additional 74 were undergoing the qualifying process.
The second biggest stablecoin is Circle’s USDC. With a market capitalisation of around $75 billion, it is far ahead of all its rivals but only slightly behind Tether’s USDT, which is valued at $183 billion.
You need to login in order to Like
Leave a comment