Shares of Circle Internet Group Inc. tumbled 13%, the most since June, as concern that declining interest rates will weigh on future returns overshadowed better-than-expected third-quarter revenue and earnings.
While revenue jumped more than 66% as the amount of Circle’s USDC stablecoin in circulation more than doubled from the year-earlier period, the company noted Wednesday that its reserve return rate fell 96 basis points to 4.15% in the quarter ended Sept. 30. Circle earns most of its profit from the interest paid on US government securities that it holds in reserve to back its stablecoin.