I just finished reading Circle's Q2 financial report, and to be honest, this report is quite impressive. I also listened to the conference call, and I'd like to share a few key points with everyone:

1. The financial data is quite bright

Total revenue increased by 53% year-on-year, reaching 658 million USD, of which reserve revenue is 634 million (+50%), and other revenue (subscriptions, services, transactions) is 24 million (+252%).

The net loss of 482 million is mainly due to non-cash expenses of 591 million from the IPO, which is an accounting figure and not a business loss.

EBITDA is the core metric, showing a growth of 52% to 126 million, with a profit margin of 50%, which truly indicates profitability.

2. Core metrics of stablecoins are steadily climbing

USDC's market share is 28%, an increase of 5.95 percentage points from last year.

Active wallets are 5.7 million (+68%), minting volume is 42.2 billion (+21%), and redemptions are 40.8 billion (+17%). At this pace, USDC's user base and liquidity are genuinely on the rise.

3. Business actions are swift

In May, Circle launched the Circle Payments Network, which is already collaborating with over 100 financial institutions, and is expected to accelerate in the second half of the year.

In July, they launched the Gateway test network, achieving unified USDC balance and cross-chain instant transfers.

The Arc chain was introduced, with native gas fees using USDC, and it will be in public beta this autumn.

The list of partners continues to grow: Binance, Corpay, FIS, Fiserv, OKX… almost covering all directions.

4. The annual target is quite aggressive

The circulation of USDC is expected to grow at a 40% CAGR, with other revenues projected to be between 75-85 million USD.

The profit margin for RLDC is 36-38%, and operating expenses are expected to be between 475-490 million USD.

In short: the company aims to step on the gas for growth.

5. The only slightly concerning point

As soon as the financial report was released, 10 million shares were issued, the company sold 2 million shares, and shareholders (including the CEO) sold 8 million.

The CEO selling shares before the lock-up expiration does give a rather average impression, but such operations with lock-up exemptions are not unusual, mostly to secure profits. The short-term stock price may be influenced by sentiment, but the medium to long term still depends on the business.

My view

Circle's pace is a typical growth stock strategy: stable finances, rapid growth, and dense business lines. With the stablecoin legislation just implemented, now is actually the best time to spend on expansion and capture the market.

In the medium to long term, I still remain optimistic about this sector; USDC's competitive advantage still exists! The leader in the stablecoin sector is obvious; please answer, brothers, we are all in this together!