Circle Tumbles Amid Concern Lower Rates Will Slow Profit (3)

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.

The third quarter was OK, ...