Circle Internet Group (CRCL) shares fell nearly 5% in after-hours trading Tuesday following news that the company plans to sell 10 million shares, just months after its stock surged 425% since going public.

The stablecoin issuer disclosed in an SEC filing that it will offer 2 million shares of Class A common stock directly, while existing shareholders will sell an additional 8 million shares.

Earlier in the day, Circle shares closed up 1.27% at $163.21, buoyed by stronger-than-expected second-quarter results. The company reported $658 million in total revenue, surpassing analyst estimates of $647 million.

CEO Jeremy Allaire highlighted the rapid growth of the company’s flagship stablecoin, USDC, which increased 90% year-over-year to $61.3 billion in circulation by the end of the quarter. As of August 10, circulation had climbed further to $65.2 billion.

Allaire said global demand for dollar-backed digital currencies is rising, driven by cross-border settlements and the use of stablecoins as a store of value. “Use cases continue to expand, and people are finding that this is an incredibly high utility, new form of money,” he told Yahoo Finance.

The company also revealed plans for ARC, a new blockchain network for institutional stablecoin finance, set to launch in the second half of the year. ARC aims to streamline blockchain fee payments with low-cost, predictable pricing for businesses.

Circle’s revenue model relies heavily on interest from short-term U.S. Treasury bills backing USDC. Reserve income jumped 50% year-over-year to $634 million, supported by an 86% rise in USDC circulation. Allaire noted that even if the Federal Reserve cuts rates, continued stablecoin growth could help offset lower yields.

Circle debuted on the New York Stock Exchange on June 5 and has been a key beneficiary of optimism in the stablecoin sector, especially after the passage of the GENIUS Act, which established a regulatory framework for U.S. dollar-backed digital tokens.