Circle’s stock fell more than 5% in after-hours trading after announcing a 10 million Class A share offering

Circle Internet Group shares fell more than 5% in after-hours trading on Tuesday after the company said it will offer 10 million Class A shares to the public, according to data from CNBC. Out of the total, 2 million shares will be issued by Circle itself, while 8 million shares will be sold by current stockholders.

The stablecoin issuer’s stock has surged over 450% since its public listing on June 5, making this new offering a significant move for both the company and its investors. Underwriters will also get a 30-day option to buy an extra 1.5 million shares.

The announcement came on the same day Circle reported its first quarterly results as a publicly traded firm. The company closed the regular session up 1.3% before releasing the results. For the second quarter, Circle posted a loss of $4.48 per share, with the decline tied to charges from its IPO.

Revenue rose 53% in the period, supported by a jump in stablecoin usage. The market’s reaction to both the earnings release and the share sale was swift, with investors pushing the stock down in extended trading.

Crypto prices pull back after overnight highs

Bitcoin edged close to its all-time high after an overnight rally before settling flat at $118,981.86. Ether also flattened at $4,256.90 after climbing on Sunday to its highest level since December 2021. On Friday, Ether crossed $4,000 for the first time since that same month.

Both cryptocurrencies retreated from their intraday highs as the day went on. The early gains came alongside a rise in U.S. equity futures on Tuesday morning, as traders waited for key inflation data later in the week.

U.S. stocks started the day near record levels but lost momentum in the afternoon, dragging crypto assets down with them. Companies tied to crypto prices still posted gains during the session. Coinbase shares rose nearly 3%, Galaxy Digital was up 3%, and bitcoin proxy Strategy advanced more than 1%.

Debt growth drives Asian buying

The strong crypto rally in recent weeks has been fueled by buying during Asian trading hours, tied to rapid growth in U.S. government debt. Markus Thielen, CEO of 10x Research, linked bitcoin’s breakout in early July to President Donald Trump signing the Big Beautiful Bill, which increased the U.S. debt ceiling by $5 trillion.

Markus said the surge “isn’t random” and is being driven by “the fastest U.S. debt expansion in history.” He added that whether the U.S. economy holds up or slows down, the influx of debt acts as a tailwind for hard assets like bitcoin and gold.

Markus also pointed to $133,000 as the next key resistance level for bitcoin, saying current market positioning and structure favor bullish traders. Ethereum-related stocks were among the biggest movers, as capital inflows into newly formed treasury companies helped push Ether above $4,000.

Bitmine Immersion Technologies jumped 25% on Tuesday after a similar gain on Friday, while SharpLink Gaming rose 11%.

Investor interest in Ethereum has recently outpaced Bitcoin in exchange-traded products. Last week, Ether ETFs recorded $326.83 million in inflows, compared to $246.75 million for Bitcoin ETFs, showing traders’ growing appetite for the second-largest crypto.

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