How Circle Internet Stock Gained 52.6% Last Month
Key Points
Circle Internet stock rose 52.6% in August 2026, far outpacing Bitcoin's 19.9% gain.
Nearly 13% of Circle's stock is on loan to short-sellers, a sign that many investors remain skeptical.
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Shares of Circle Internet (NYSE: CRCL) rose 52.6% in August 2026, according to data from S&P Global Market Intelligence. The stablecoin issuer posted a solid earnings report early last month, but that wasn't the engine behind its soaring stock. Instead, Circle leaned on a few regulatory milestones and bullish analyst notes.
A trust charter and a crypto tailwind
Circle wasn't the only crypto winner last month. Leading bellwether Bitcoin (CRYPTO: BTC) rose 19.9%, driven by policy progress in Washington and a less risk-averse market mood. Bitcoin staged a double-digit jump in the week of Aug. 18, and Circle followed suit.
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On top of that sectorwide surge, Circle had its own moment in the regulatory sun. At the very end of July, the company earned a trust charter in the state of New York. That's in addition to the national trust approval Circle received in early July. Together, these two banking approvals will help Circle compete against traditional banking services in the long run.
Chart source: The Motley Fool.
Mind you, Circle isn't opening savings accounts or underwriting mortgage loans for consumers or corporations. The trust charters focus on financial infrastructure, positioning the company to create and manage payment services using its USDC (CRYPTO: USDC) stablecoin.
The stock got a final push in the last week of August, as at least two analyst firms raised their price targets for Circle substantially.
Image source: The Motley Fool.
Why some investors remain skeptical
Furthermore, Circle's August run didn't set any all-time records. As of this writing on Sept. 3, the stock is down 61% from its peak shortly after the June 2025 IPO. Investors are still getting a feel for what this newfangled fintech company can do. Honestly, its operating metrics look weak next to old-school powerhouses like JPMorgan Chase (NYSE: JPM) or American Express (NYSE: AXP). At the same time, Circle's stock still trades at nosebleed-inducing valuation multiples, even if you account for lofty revenue growth expectations.
And I think that's the right lens to view Circle through. The company makes its money by earning interest payments on Treasury bonds it holds on behalf of the USDC stablecoin. That's quite similar to banks earning interest against the assets they manage. Circle's crypto-based payment service ideas look promising, and the stablecoin already enjoys widespread daily usage in leading crypto brokerage services.
But does the company deserve a premium valuation yet? I'm not so sure, and many investors agree; nearly 13% of its stock is on loan to short-sellers, far above the low-single-digit percentages you see for the mega banks. Many investors see more risk than reward in Circle's stock right now. A solid August performance doesn't change that fact.
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American Express is an advertising partner of Motley Fool Money. JPMorgan Chase is an advertising partner of Motley Fool Money. Anders Bylund has positions in American Express and Bitcoin. The Motley Fool has positions in and recommends American Express, Bitcoin, and JPMorgan Chase. The Motley Fool has a disclosure policy.
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