Circle Internet Group Inc. ( CRCL ) stunned markets on Wednesday after posting a 202% profit surge, yet the stock slid again as traders questioned whether the gains can translate into long-term growth.

CRCL Posts Record Profit As USDC Surges 108%

Circle posted third-quarter net income of $214 million, up 202% year over year. 

Total revenue and reserve income rose 66% to $740 million, while adjusted EBITDA climbed 78% to $166 million.

USDC in circulation reached $73.7 billion, a 108% annual increase, marking a record quarter for the world's second-largest stablecoin issuer.

The company said accelerating adoption and new partnerships are driving growth across its payments and blockchain infrastructure businesses.

CEO Jeremy Allaire said Circle is "building the new economic OS for the internet," citing strong momentum from the Arc testnet launch.

He added that programmable digital dollars and open financial infrastructure continue to reshape global finance.

Arc Network And Institutional Expansion

Circle highlighted the launch of its Arc public testnet, which attracted more than 100 participating financial institutions and technology partners. 

The firm is exploring a native Arc token to support network adoption and long-term participation incentives.

Its Circle Payments Network (CPN) now operates in eight countries with 29 banks enrolled and more than 500 in the onboarding pipeline.

Partners include Deutsche Börse Group, Visa Inc. ( V ) , Kraken, Fireblocks, and Unibanco Itaú, reflecting Circle's deepening ties across traditional and digital finance.

The company's tokenized fund USYC grew over 200% since June to nearly $1 billion, reinforcing its positioning in on-chain asset management.

Stock Slumps Despite Strong Earnings

CRCL Price Action (Source: TradingView)

Circle shares closed down 5.6% at $98.30 on Tuesday and extended losses Wednesday to about $94.29, down another 4% in premarket session. 

The stock continues to trade inside a descending channel that has capped every rebound since July.

On the daily chart, price remains below the 20-day EMA at $119.33 and faces overhead resistance from the 50-day and 100-day EMAs near $130.55 and $147.07.

Momentum indicators show weak buying interest, with RSI near 32, signaling persistent bearish control.

Immediate support rests at $94.70.

A close below that level could open the door to deeper losses toward $75–$70, where the trend channel's base aligns.

A breakout above $130.50, however, could mark early signs of recovery toward $147–$157 if buyers return.

Investor Focus Shifts To Spending Outlook

Circle raised its full-year adjusted operating expense forecast to $495 million to $510 million, up from the previous range of $475 million to $490 million. 

The increase reflects continued platform development and higher payroll taxes tied to stock-based compensation. 

Operating expenses rose 70% year over year to $211 million, while adjusted operating costs climbed 35% to $131 million. 

The surge in expenses offset record profit growth, prompting some investors to lock in gains. 

With stablecoin yields likely to decline as interest rates fall, traders see limited margin expansion despite the strong revenue numbers.

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