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Circle's Q2 Results Beat Estimates: So Why Is CRCL Stock Selling Off?

Reviewed by ClearTape · Source: Benzinga

Key takeaways

CRCL's Q2 earnings beat estimates, but concerns about USDC and margin pressure are weighing on the stock, leading to a 1.5% decline.
CRCL's Q2 revenue and reserve income: $701 million
USDC in circulation: $73.3 billion
On-chain transaction volume: $14.8 trillion

What happened

Circle Internet Group (CRCL) beat Q2 earnings estimates, but its stock is down 1.5% due to concerns about sequential USDC decline and margin pressure.

Why it matters

The decline in USDC and margin pressure are major concerns for CRCL, as they could impact the company's revenue and profitability.

Short-term and longer-term

Short-term. CRCL's stock is trading 3.9% below its 20-day SMA and 18% below its 50-day SMA, with the death cross formed in June keeping the longer-term structure cautious.

Longer-term. The Q2 earnings beat estimates, but the concerns about USDC and margin pressure are major concerns for CRCL's revenue and profitability.

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