Circle Internet Group (NYSE: CRCL), the crypto company well-known for its USD Coin (USDC) stablecoin, reported financial results for the fourth-quarter of 2025 on Feb. 25.
The firm reported earnings per share (EPS) of $0.43, beating Wall Street estimates of $0.35. The quarterly revenue stood at $770 million.
USDC in circulation of $75.3 billion at year-end grew 72%. Circle co-founder and CEO Jeremy Allaire said,
"The fourth quarter marked another step forward in Circle's mission to build the infrastructure for an open, programmable internet financial system."
The company made an extraordinary public debut on Wall Street on June 5 last year when its shares opened 124% above the $31 IPO price, beginning public trading at $69.
The IPO was so overloaded with demand that it was 25 times oversubscribed.
However, the stock lost its steam in the subsequent months. But the stock's price has surged 65% following the earnings release.
The CRCL stock surged 15% to close at $96.14 on March 2. It was trading at $102 at press time, up 6% in a day.
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Analyst hikes Circle stock's price target
Mizuho Securities analyst Dan Dolev has hiked the price target on the Circle stock by 10%, Barron's reported on March 3.
Dolev raised the price target from $90 to $100 while reiterating a "neutral" rating on the shares.
Circle earns the majority of its revenue from interest on USDC reserves which are mostly held in short-term U.S. Treasuries and cash.
In simple words, USDC is a cryptocurrency that tries to keep its price stable by being pegged 1:1 to the U.S. dollar. The value of one USDC is the same as that of one dollar.
As per the onchain analytics platform DeFiLlama , USDC has a market capitalization of $75.92 billion and accounts for 24.3% share of the total market.
Circle's USDC reserve consisted of U.S. Treasury securities worth $18.8 billion as of Jan. 30, as per a Deloitte audit report .
Dolev attributed the hike in price target on Circle stock to potential inflation and the lowered possibility of the Federal Reserve going for an interest rate cut due to rising oil prices amid the war between the U.S.-Israel and Iran.
"Rising oil prices could drive up inflation, lowering the odds of rate cuts," Dolev said.
Related: 158-year-old bank 'neutral' on Circle despite earnings beat
Due to the war in West Asia, oil prices have surged significantly.
The West Texas Intermediate (WTI), the crude oil benchmark in North America, has soared 2.99% today to trade at $73.36 per barrel at the time of writing.
Brent Crude, the global oil benchmark, has risen 3.23% today to trade at $80.25 per barrel at press time.
Crypto Council for Innovation advisor Sean Lee told TheStreet Roundtable in emailed comments that a surge in oil price above $120 per barrel could "ignite inflation fears."
What Dolev meant is that the adoption of USDC could grow as traders could prefer USD-pegged stablecoins above bank savings to earn higher interests.
Growing USDC adoption would lead to Circle having a stable interest income via its U.S. Treasury holdings, compelling the analyst to raise the price target on the firm's stock.
Related: Oil surge to $120 could reignite inflation fears, analyst warns
This story was originally published by TheStreet on Mar 3, 2026, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.
