NEW YORK, March 10, 2026, 12:24 (EDT)
Circle Internet Group shares rose about 6.2% on Tuesday, with the stock at $118.75 in midday U.S. trading, as investors parsed an annual report filed Monday that laid out how heavily the USDC issuer still leans on reserve income. Circle also filed an S-8 registration statement for employee stock plans the same day. 1
The timing matters because Circle’s sharp post-earnings rally has put more weight on the shape of its business, not just its growth rate. The 10-K showed reserve income from managing stablecoin reserves made up 96% of revenue from continuing operations in 2025, keeping the company closely tied to interest rates as well as token growth. Stablecoins are crypto tokens designed to hold a steady value against a currency such as the U.S. dollar. 2
Circle said in the filing that swings in interest rates can materially affect results. It earns reserve income by investing the cash and short-dated U.S. Treasuries backing USDC, and warned that lower rates would reduce those returns even if adoption keeps rising. 3
The annual report landed less than two weeks after strong quarterly results. Circle reported on Feb. 25 that fourth-quarter revenue and reserve income rose 77% to $770 million, reserve income climbed 69% to $733 million and USDC in circulation ended the year at $75.3 billion; Reuters reported the stock jumped nearly 30% that day. 4
“The key takeaway is that USDC continues scaling rapidly, at a pace that’s far outweighing impacts from rates,” Seaport Research Partners analyst Jeff Cantwell told Reuters after those results. Chief Executive Jeremy Allaire, also speaking to Reuters, said lower rates would be “welcome” if they help speed money movement and adoption. 2
Circle’s filing also showed how central Coinbase remains to the business model. Under an August 2023 collaboration agreement, Circle makes payments to Coinbase tied mainly to net reserve income from USDC, and records those payments as distribution costs. 3
Competition is widening. Circle said it faces “intense and increasing competition” from offshore issuer Tether, other U.S.-based stablecoin providers, banks and payment companies that could enter the market as regulation becomes clearer. 3
The company is trying to broaden the story beyond reserve yield. In last week’s earnings release, Allaire said the quarter marked “another step forward” for Circle’s push into payments and blockchain infrastructure, pointing to growth in Circle Payments Network and progress toward launching the Arc mainnet this year. 4
Monday’s S-8 was more routine, but it still matters for investors tracking the share count. Circle registered 14.54 million additional Class A shares for its 2025 omnibus incentive plan and employee stock purchase plan after automatic increases that took effect on Jan. 1. 5
The 10-K also flagged what could go wrong. Circle warned that periods of stress could trigger rapid redemption requests, or runs, and said extreme scenarios in which all or nearly all USDC holders seek cash at once could cause delays and leave reserves short of meeting every request; lower rates would also cut reserve returns. 3
Circle went public in June 2025 at $31 a share, raising $1.05 billion in an upsized IPO that Reuters said ranked among the biggest crypto listings since Coinbase’s 2021 debut. Tuesday’s price leaves the stock well above that offer level, but the latest filings show newer products still sit beside, not yet in place of, the reserve-yield engine. 6
