Shares of Circle Internet Corp. (CRCL) plummeted 5.30% in intraday trading on Wednesday, reversing sharp premarket gains as investors focused on a top-line revenue miss and cautious remarks from the company's leadership.

The sharp decline came despite Circle reporting a swing to profitability in the second quarter, with earnings of $0.18 per share beating analyst estimates. However, total revenue and reserve income of $701.3 million fell short of Wall Street expectations of approximately $717 million to $718 million, raising concerns about the pace of growth. CEO Jeremy Allaire added to the cautious tone during the earnings call, noting that "digital asset markets have continued to see significant weakness," which dampened the initial enthusiasm that had sent shares up as much as 9% in premarket trading.

The stablecoin issuer saw USDC circulation rise 19% year-over-year to $73.3 billion, but a 66-basis-point drop in the reserve return rate to 3.5% limited reserve income growth. The combination of the revenue miss, the CEO's downbeat assessment of the crypto market, and the fading of premarket optimism contributed to the stock's intraday slump.