Why Circle Internet Stock Surged 14.3% Higher Last Month But Is Falling in April

Circle Internet (NYSE: CRCL) stock posted strong gains in March’s trading. The cryptocurrency company’s share price managed to climb 14.3% in the month despite the S&P 500 declining 5.1% and the Nasdaq Composite declining 4.8%.

Circle stock continued to move higher last month thanks to continued momentum from the encouraging earnings results it reported near the end of February. Relatively strong performance for the price of Bitcoin in March also helped boost Circle’s valuation.

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Circle published its Q4 report on Feb. 25, and results that were much stronger than expected helped kick off a big rally for the stock that extended into March. The company posted earnings per share of $0.43 on revenue and reserve income of $770 million in the period, crushing the average Wall Street analyst estimate’s call for a per-share profit of $0.16 on sales of roughly $745 million.

The company said that it had $75.3 billion worth of its USDC stablecoin in circulation at the end of last year, representing annual growth of 72%. Along with the Q4 report, Circle laid out guidance for USDC in circulation to increase 40% in 2026 and for other revenue to come in between $150 million and $170 million.

In addition to continued bullish momentum stemming from the company’s Q4 report, Circle stock also benefited from pricing trends for Bitcoin last month. The market-leading cryptocurrency ended March up roughly 1.2% — a performance that looked strong compared to sell-offs impacting the stock market.

Bitcoin’s gain last month helped support the thesis that cryptocurrencies can be a bulwark against geopolitical and macroeconomic pressures. While the broader stock market was hit with substantial sell-offs as a result of the war in Iran, the top crypto coin actually managed to end the month in the green.

On the heels of big gains, Circle stock has seen a significant pullback early in April’s trading. As of this writing, the company’s share price is down 5.4%. The S&P 500 has risen 3.8% over the same period, and the Nasdaq Composite is up 5.2%.

Sell-offs for Circle stock this month could be connected to reports that emerged toward the end of March suggesting that the Clarity Act legislation could significantly limit yield rewards generated from stablecoins. Investors betting that a relatively quick end to the war with Iran could reduce demand for stablecoins and cryptocurrencies at large could also be a factor in the pullback.

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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Why Circle Internet Stock Surged 14.3% Higher Last Month But Is Falling in April was originally published by The Motley Fool

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