New York, Feb 26, 2026, 07:18 ET — Premarket
- Circle Internet Group (CRCL) slipped roughly 0.4% before the bell, following a sharp 35.5% jump in the previous session.
- USDC stablecoin issuer reported Q4 revenue and reserve income at $770 million, with projections for “other revenue” in 2026 landing between $150 million and $170 million.
- Morgan Stanley bumped its price target up to $80—though that remains under where shares finished on Wednesday.
Circle Internet Group slipped 0.4% to $82.75 ahead of Thursday’s open. That comes after a 35.5% surge to $83.14 the day before, triggered by its latest quarterly earnings.
Why does the response matter? Circle’s main driver is “reserve income,” generated from interest on the cash and near-cash assets supporting USDC, the dollar-pegged token meant to track the greenback one-to-one. Most of those reserves, according to Circle, are parked in the Circle Reserve Fund—a government money market fund. That leaves the company’s business model especially exposed to swings in short-term rates. circle.com
Investors want to know just how much of USDC’s recent growth comes from crypto trading, and what portion is moving into payments and settlement — typically a more persistent use case. Circle, meanwhile, has been rolling out new infrastructure, like its payments network and the planned Arc blockchain, aiming to broaden the reach.
Circle’s latest SEC filing, dated Feb. 25, shows fourth-quarter total revenue and reserve income jumped 77% year-on-year to $770 million. Net income from continuing operations landed at $133 million, and adjusted EBITDA — which leaves out some costs — reached $167 million. USDC wrapped up 2025 with $75.3 billion in circulation. The reserve return rate slid to 3.8%, down 68 basis points, or 0.68 percentage point. Circle is projecting “other revenue” of $150 million to $170 million for 2026. SEC
CEO Jeremy Allaire called the fourth quarter “another step forward,” highlighting broader adoption of “digital dollars” for payments and various on-chain workflows. Business Wire
During the earnings call, management reported that Arc’s test network has handled over 166 million transactions since its debut and is “now averaging around 2.3 million daily transactions.” The Circle Payments Network, meanwhile, showed an annualized transaction volume of $5.7 billion, calculated from the trailing 30 days as of Feb. 20. Executives highlighted partnerships with names like Visa and Intuit as proof of momentum beyond crypto-native circles. Investing.com
Morgan Stanley on Thursday bumped up its Circle price target to $80, up from $66, maintaining an Equalweight stance. The firm pointed to stronger-than-anticipated momentum in areas like payments and on-chain FX tools as Circle’s products ramp up.
Circle still trails behind Tether’s USDT, holding onto the number two spot among dollar-pegged stablecoins. USDC’s share is up for grabs, with fresh players entering the stablecoin arena and sparking new arguments over market dominance.
The setup isn’t one-sided. Should U.S. rates slip, reserve income might shrink even if USDC balances climb, and Circle’s payouts to partners can jolt margins. Traders are eyeing whether the post-earnings reaction sticks after the open, or loses steam as the market chews over the guidance.
Investors are watching for U.S. inflation and labor data that could shake up Treasury yields. The January producer price index lands at 8:30 a.m. ET Friday, Feb. 27. February jobs numbers follow on March 6. The Fed wraps its next two-day meeting with a rate decision March 18.
