Circle’s First-Quarter Revenue Increases 20%, Net Income Drops

Circle Internet Group Inc.’s first-quarter revenue increased 20% while net income declined, as ongoing volatility in cryptocurrency markets roiled earnings from companies across the industry at the start of the year.

The amount of Circle’s USDC stablecoin in circulation rose 28% to $77 billion from the year-earlier period, while the New York-based company noted that its reserve return rate was 3.5% in the quarter ended March 31, a fall of 66 basis points and missing expectations of 3.56%. Circle earns most of its profit from the interest paid on US government securities that it holds in reserve to back its stablecoin.