{"id":36605,"date":"2026-08-06T18:38:24","date_gmt":"2026-08-06T18:38:24","guid":{"rendered":"https:\/\/bitunikey.com\/news\/circle-stock-gets-140-target-after-mixed-q2-results\/"},"modified":"2026-08-06T18:38:47","modified_gmt":"2026-08-06T18:38:47","slug":"circle-stock-gets-140-target-after-mixed-q2-results","status":"publish","type":"post","link":"https:\/\/bitunikey.com\/news\/circle-stock-gets-140-target-after-mixed-q2-results\/","title":{"rendered":"Circle stock gets $140 target after mixed Q2 results"},"content":{"rendered":"<div class=\"post-detail__content blocks\">\n<p class=\"is-style-lead\">Circle stock gained on Thursday after Bernstein reiterated its Outperform rating and $140 target, arguing that the stablecoin issuer\u2019s mixed second-quarter results challenged the bearish case against the company.<\/p>\n<div id=\"cn-block-summary-block_2dd9f4ec0349a4665b21b11889c23b10\" class=\"cn-block-summary\">\n<div class=\"cn-block-summary__nav tabs\">\n        <span class=\"tabs__item is-selected\">Summary<\/span>\n    <\/div>\n<div class=\"cn-block-summary__content\">\n<ul class=\"wp-block-list\">\n<li>Circle generated <strong>$701 million in Q2 revenue<\/strong>, up 7% but about 2% below estimates.<\/li>\n<li>Bernstein\u2019s <strong>$140 target implies roughly 114% upside<\/strong> from CRCL\u2019s latest price.<\/li>\n<li>USDC circulation reached <strong>$73.3 billion<\/strong>, up 19% year over year but down 5% quarterly.<\/li>\n<li>Circle expects the <strong>Arc public mainnet to launch Sept. 16<\/strong> with 11 institutional validators.<\/li>\n<\/ul><\/div>\n<\/div>\n<p><!-- .cn-block-summary --><\/p>\n<h2 class=\"wp-block-heading\">Bernstein argues Circle\u2019s results challenge bears<\/h2>\n<p>Bernstein analysts led by Gautam Chhugani described Circle\u2019s second-quarter report as a \u201ccounter thesis to the bears,\u201d according to a Thursday note to clients.<\/p>\n<p>The brokerage retained its Outperform rating and $140 price target. The target is more than double Circle\u2019s Thursday price of $65.29, although Bernstein had previously lowered it from $190 in late July.<\/p>\n<figure class=\"wp-block-embed is-type-rich is-provider-x wp-block-embed-x\">\n<div class=\"wp-block-embed__wrapper\">\n<blockquote class=\"twitter-tweet\" data-width=\"550\" data-dnt=\"true\">\n<p lang=\"en\" dir=\"ltr\">\ud83d\udfe2 Circle\u2019s Q2 numbers answered the bear case, Bernstein says.<\/p>\n<p>It reiterated Outperform and a $140 target on <a rel=\"nofollow\" target=\"_blank\" rel=\"nofollow\" href=\"https:\/\/x.com\/search?q=%24CRCL&amp;src=ctag&amp;ref_src=twsrc%5Etfw\">$CRCL<\/a>, saying markets undervalue its reach, regulatory lead and Arc.<\/p>\n<p>The thesis: Circle is becoming infrastructure, not just a reserve-income stock. <a rel=\"nofollow\" target=\"_blank\" rel=\"nofollow\" href=\"https:\/\/t.co\/4PWl2wsJ9s\">pic.twitter.com\/4PWl2wsJ9s<\/a><\/p>\n<p>\u2014 AInvest Wire (@Ainvest_Wire) <a rel=\"nofollow\" target=\"_blank\" rel=\"nofollow\" href=\"https:\/\/x.com\/Ainvest_Wire\/status\/2085335287782072636?ref_src=twsrc%5Etfw\">August 6, 2026<\/a><\/p><\/blockquote>\n<\/div>\n<\/figure>\n<p>Circle reported $701 million in total revenue and reserve income, a 7% increase from the same period last year. The figure missed consensus estimates by about 2%, contributing to the mixed assessment of the quarter.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p>\n<p>Profitability was stronger. Adjusted EBITDA rose 8% year over year to $143 million, while basic earnings per share of $0.19 exceeded expectations. Net income from continuing operations reached $48 million, improving by $530 million from the previous year\u2019s loss, which included expenses tied to Circle\u2019s initial public offering.<\/p>\n<p>Reserve income still generated roughly 95% of total revenue, leaving Circle exposed to changes in US interest rates. A lower federal funds rate would reduce the returns the company earns on assets backing USDC.<\/p>\n<h2 class=\"wp-block-heading\">USDC growth supports the long-term thesis<\/h2>\n<p>USDC circulation ended the quarter at $73.3 billion. That represented 19% annual growth but a 5% decline from the $77 billion reported at the end of the first quarter.<\/p>\n<p>Onchain transaction volume reached $14.8 trillion during the quarter, up 151% year over year, according to Circle\u2019s earnings report. The figures suggest network activity grew faster than the amount of USDC in circulation.<\/p>\n<p>Bernstein argued that concerns about stablecoin competition underestimate Circle\u2019s distribution, liquidity, and regulatory advantages. The analysts expect USDC adoption to expand beyond cryptocurrency trading into payments, tokenized real-world assets, and institutional financial infrastructure.<\/p>\n<p>Circle also received final approval from the US Office of the Comptroller of the Currency to establish Circle National Trust. The federal trust bank charter places part of the company\u2019s infrastructure under direct US oversight and could eventually allow the entity to manage USDC reserves.<\/p>\n<h2 class=\"wp-block-heading\">Arc could reduce Circle\u2019s reliance on reserve income<\/h2>\n<p>Bernstein identified Circle\u2019s Arc blockchain and payments partnerships as possible sources of revenue outside interest earned on USDC reserves.<\/p>\n<p>Circle plans to launch Arc\u2019s public mainnet on Sept. 16. BlackRock, DTCC, Galaxy, Global Payments, ICE, Mastercard, MoneyGram, SBI Group, Standard Chartered, Sumitomo Corporation, and Visa will serve as founding validators, according to <a rel=\"nofollow\" target=\"_blank\" href=\"https:\/\/www.circle.com\/pressroom\/circle-announces-founding-validator-cohort-and-major-integrations-for-arc-ahead-of-september-16-mainnet-launch\" target=\"_blank\" rel=\"nofollow\">Circle\u2019s announcement<\/a>.<\/p>\n<p>Management raised its 2026 forecast for other revenue and its revenue-less-distribution-cost margin. The revised outlook includes the expected recognition of $180 million from an Arc token presale.<\/p>\n<p>Bernstein said current forward estimates may not fully account for prospective Arc staking income, gas fees, transaction revenue, and partnership activity. Those sources could help diversify Circle\u2019s business, but their contribution will depend on adoption after the mainnet launch.<\/p>\n<h2 class=\"wp-block-heading\">Circle stock faces resistance near $70<\/h2>\n<p>CRCL rose 3.18% to $65.29 on Thursday after trading between $60.01 and $65.91. The stock moved above the midpoint of its daily Bollinger Bands at $63.84, indicating that short-term momentum had improved.<\/p>\n<figure class=\"wp-block-image size-full\"><figcaption class=\"wp-element-caption\">Circle price daily chart | Source: TradingView<\/figcaption><\/figure>\n<p>The relative strength index rose to 47.9, up from its moving average of 44. The reading remains below the neutral 50 level, meaning buyers have not yet established firm control.<\/p>\n<p>Immediate resistance sits between $68.80 and $70. A daily close above that range could support a broader recovery, while failure to hold $60 would expose the lower Bollinger Band near $58.87.<\/p>\n<p>Despite Thursday\u2019s advance, Circle remains in a broader downtrend after falling from above $130 in May. Bernstein\u2019s $140 target therefore depends on Circle restoring USDC growth, launching Arc successfully, and developing revenue sources less sensitive to US interest rates.<\/p>\n<p>    <!-- .cn-block-related-link --><\/p><\/div>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Circle stock gained on Thursday after Bernstein reiterated its Outperform rating and $140 target, arguing that the stablecoin issuer\u2019s mixed second-quarter results challenged the bearish case against the company. Summary&hellip;<\/p>\n","protected":false},"author":1,"featured_media":33662,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-36605","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-cryptocurrency"],"_links":{"self":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/36605","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/comments?post=36605"}],"version-history":[{"count":1,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/36605\/revisions"}],"predecessor-version":[{"id":36606,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/posts\/36605\/revisions\/36606"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media\/33662"}],"wp:attachment":[{"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/media?parent=36605"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/categories?post=36605"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bitunikey.com\/news\/wp-json\/wp\/v2\/tags?post=36605"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}