Circle Internet Group’s (NYSE:CRCL) stock slid more than 6% after hours on Tuesday after the stablecoin issuer announced plans to sell 10 million shares, just weeks after its blockbuster IPO and quintupling of the stock price.
The sale includes 2 million new shares and 8 million from existing holders.
The news followed Circle’s first earnings report, which beat revenue forecasts with $658 million for the quarter versus $647 million expected.
USDC, its US dollar-backed stablecoin, grew 90% year-on-year to $61.3 billion in circulation, reaching $65.2 billion by 10 August.
CEO Jeremy Allaire said USDC’s adoption in cross-border settlements is expanding, and the firm will launch ARC, a blockchain network for stablecoin finance, later this year.