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Circle Stock Falls 5% After Layoffs, Reserve Income Drop
Why did Circle stock fall 5%?
Circle (CRCL) stock fell about 5% to $63.82 on Thursday, extending a slide after it cut about 5% of staff and reported an 8% drop in reserve income as rates fell.
Key numbers
| CRCL share price | $63.82-4.9% on Nov 12 |
|---|---|
| Reserve income (Q3) | $658M-8% YoY |
| Total revenue and reserve income | $865M+17% YoY |
| Workforce cut | ~5%$9.1M restructuring charge |
| Reserve return rate | 3.5%-0.61 points YoY |
| USDC in circulation | $73.9Bflat YoY |
What happened
Circle (CRCL) stock fell about 5% to $63.82 on Thursday, extending a slide after it cut about 5% of staff and reported an 8% drop in reserve income as rates fell. Reserve income is the interest Circle earns on the cash backing its USDC stablecoin, and it fell to $658 million last quarter. Total revenue rose 17% to $865 million, but $182 million came from a one-time token sale, so without it revenue would have fallen. Banks are also planning their own stablecoin.
Why it matters
Circle (CRCL) earns most of its money from interest on the cash behind USDC, so lower interest rates directly shrink its income. The amount of USDC in use was flat at $73.9 billion, while 21 banks and financial firms plan their own dollar stablecoin for 2027. Coinbase, Circle's biggest partner, also keeps the interest on the USDC it holds itself. More competition could mean slower growth for Circle.
Who this affects
- MarketbearishMedium impact
- Crypto-linked shares fell together, which is bad for holders.
- CompanybearishMedium impact
- Falling rates cut income, leaving Circle shareholders with a weaker stock.
- CompetitorsmixedLow impact
- Coinbase fell 4.1%; bank-backed rivals could gain ground.
- IndustrymixedMedium impact
- Stablecoin market gets more crowded as banks enter.
Circle vs Coinbase, Robinhood
How we got here
Circle reports Q3 results and discloses a roughly 5% staff cut.
Goldman, Citi and 19 other firms commit $270M to a joint dollar stablecoin.
Circle closes at $67.12, down 12% in a week since its Nov 4 close.
Circle closes at $63.82, down 4.9% on the day.
What to watch
- Later interest-rate decisions, which set the yield Circle earns on its reserves.Q4 2026
- Launch of the bank-backed stablecoin, targeted for the first half of 2027.H1 2027
- Circle's next quarterly report on reserve income and USDC circulation.Q1 2027
Educational content only. Not investment advice.
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