Shares of Circle Internet Group (CRCL +9.98%) soared on Friday, closing 10.9% higher at noon ET. The stablecoin manager didn't have much news to share today, but the stock had been sliding across the last two weeks amid weak Bitcoin (BTC 1.06%) prices and bearish macroeconomic news. The general market mood was brighter on this post-Thanksgiving day with just 150 minutes of full-service trading, and that was enough to spark a modest recovery in the crypto sphere.
NYSE: CRCL
Key Data Points
How Circle makes money from stablecoins
Circle doesn't own or manage Bitcoin for a living. Its operations focus on managing the popular USDC (USDC +0.00%) stablecoin. Circle makes more money when there is more USDC in circulation, as the company earns interest in cash reserves tied to the stablecoin. USDC's market cap fell 3% from Nov. 13 to Nov. 21, and now it's back up where it was before that drop.
In other words, investors withdrew 3% of their USDC holdings in mid-November, and now they're putting that money back into the market. Circle's stock amplifies these bullish and bearish moves, as its investors struggle to predict how these short-term swings might affect its long-term cash generation abilities.
Image source: Getty Images.
Circle's wild ride since going public
Circle entered the public stock market as recently as June 4, 2025. It started life on a high-octane kick, more than tripling its share prices in the first month. About six months later, it's back below the first trading day's closing price.
Heavy trading in the leading cryptocurrencies tends to result in more USDC activity. When USDC's market cap is going down while Bitcoin and other major coins are down, people and investment firms are selling coins to take cash out of their crypto accounts. The reverse happened over the Thanksgiving break.
It's safe to say that stablecoin management is a new and poorly understood concept on Wall Street. Circle's ultra-volatile stock should grow more stable over the years, based on predictable cash flows from the cash reserves backing USDC.
Pro tip: Earning interest on large cash reserves is a core money-making strategy for traditional banks, too. Someday, this stock should behave like those of a large-cap megabank. But that day is probably many years away, so I expect Circle's wild price swings to continue for the foreseeable future.
