Circle Pops on Earnings - up big in pre market (Patreon)

Circle first earnings as a public company:USDC circulation:

• $61.3B at Q2 end, rising to $65.2B by August 10

• 90% Y/Y growth, 49% YTD growth

• USDC leads as the fastest-growing major stablecoin

• Increasing revenue and profitability

• New commercial partnerships, product launches (CPN, Gateway, 8 new chains), and Arc, a new Layer-1 blockchain, unveiled today

WHY ARE EARNINGS NEGATIVE?

IPO costs are the expenses a private company pays when it becomes public by selling its shares on a stock market (like Circle did on the NYSE in 2025).These costs can be in cash or non-cash form, and they often add up to hundreds of millions of dollars for big companies.Main parts include:

• Cash costs: Fees paid to investment banks for handling the share sale, fees for lawyers and accountants, costs for government filings, and expenses for marketing and investor meetings. These are usually paid during the IPO process.

• Non-cash costs: Often tied to stock-based pay for employees (as with Circle), where old stock grants become more valuable at the public price and must be recorded as an expense right away. Other examples include costs for issuing shares or adjusting things like warrants or preferred stock.

For Circle, $591 million in IPO costs (including stock-based pay) were mostly non-cash and one-time. This led to a $482 million net loss. These costs are recorded around the IPO time, which temporarily makes the company's profits look worse. After the IPO, things usually return to normal without these extra hits.

MY TRADE 5 DAYS AGO

This trade has prob made a 10x in 5 days - this is the power of optons and identifying market price inefficiences of market maker options prices.