Shares of Circle Internet Group (CRCL 4.43%) fell 12.9% this week, according to data from S&P Global Market Intelligence. The stablecoin issuer keeps falling to new lows, breaking briefly below its opening day price after its initial public offering (IPO) earlier this year. A wider wash-out in the cryptocurrency market and a falling Bitcoin price are likely bringing down Circle Internet stock.
Last week, Circle Internet Group released its third-quarter earnings, showing impressive growth and improving profitability. Does that make the stock a buy on this recent price dip?
NYSE: CRCL
Key Data Points
Sliding Bitcoin, getting profitable
When Bitcoin falls, it tends to bring down anything related to cryptocurrencies along with it. This week has been one of the worst for the flagship cryptocurrency in a long while, with the price of Bitcoin in US dollars down 20% in the last month as of this writing on November 21st, 2025. It is currently trading at a price of $85,000.
Sentiment around cryptocurrency is turning negative. While Circle Internet Group technically operates in the cryptocurrency sector, it should be insulated from any fallout of a declining Bitcoin price. It is what's known as a stablecoin issuer, with its USDC currency that is pegged one-to-one with the U.S. dollar. People can exchange their dollars for USDC, which the company is trying to increase in popularity for payments and personal finance applications.
Last quarter, USDC in circulation grew a whopping 108% year-over-year to $73.7 billion. Circle Internet Group makes money similarly to a bank, taking the dollars on its balance sheet and investing in interest-earning assets like U.S. Treasury bonds. Last quarter, its revenue less distribution costs grew 55% to $292 million. The company is now profitable, with $153 million in net income just last quarter.
Image source: Getty Images.
Is Circle Internet stock a buy?
Stablecoins -- and cryptocurrencies in general -- are a risky sector to invest in, given the uncertainties around regulation, especially in the United States. The current U.S. government is pro-cryptocurrencies, but that is not guaranteed to stay the case over the long term.
With that being said, Circle Internet Group looks like a potentially cheap stock for those bullish on the growth of stablecoins. Annualizing its net income, the company has over $600 million in potential earnings power with revenue also growing above 50% year-over-year. The stock trades at a market cap of just $17 billion, which would be a price-to-earnings ratio (P/E) of 28 compared to $600 million in net income. That is a cheap price for a company growing revenue (and its underlying earnings power) at 55% year-over-year.
