SoftBank Just Dumped Circle Stock. Don’t Panic and Keep Adding CRCL Here.

Circle Internet Group (CRCL) stock is a buy even after SoftBank (SFTBY) walked away. According to a recent 13F filing, the Tokyo, Japan-based investment firm quietly dumped its entire stake in the stablecoin leader during the first quarter of 2026. 

If you dig into Circle’s Q1 earnings, however, the business looks stronger than ever. That makes SoftBank's recent exit look a lot more like a portfolio housekeeping move than a verdict on the future of the company.

SoftBank's Q1 Portfolio Reshuffle Was Sweeping

The latest 13F filing for the quarter ended March 31, 2026, revealed a major reshuffling of SoftBank's U.S. equity positions. The Japanese conglomerate fully exited other high-profile names, including ride-share company Uber (UBER) and insurtech firm Lemonade (LMND).

SoftBank sold 95,659 shares of Circle, which are currently worth almost $10.8 million. Valued at a market capitalization of about $27.5 billion, CRCL stock is down more than 62% from its 52-week high of $298.99.

Softbank also slashed its T-Mobile (TMUS) stake from 28.5 million shares to 10 million shares, and trimmed its Neumora Therapeutics (NMRA) position slightly. On the buy side, the firm opened a new position in Ethos Technologies (LIFE), taking a 3.13 million Class A share stake. These moves paint a picture of a firm actively rotating capital, not necessarily souring on any one industry.

Circle's Business Is Firing on All Cylinders

Circle ended Q1 2026 with $77 billion of USDC (USDCUSD) in circulation, up 28% year-over-year (YOY). Moreover, on-chain transaction volume surged 263% YOY to $21.5 trillion in the quarter. According to third-party data cited by the company, USDC now accounts for roughly 80% of all dollar-denominated on-chain transactions.

Total revenue and reserve income came in at $694 million, up 20% YOY. Adjusted EBITDA grew 24% YOY to $151 million, and the company maintained a 53% adjusted EBITDA margin. 

CEO Jeremy Allaire pointed to major new enterprise adoptions during the quarter. Meta Platforms (META) began using USDC for creator payouts, while DoorDash (DASH) is paying drivers in USDC. Treasury management platform Kyriba — which serves thousands of enterprises, including Fortune 100 companies — struck a broad partnership with Circle to make USDC payment flows a standard part of its system.

The stablecoin market grew 32% YOY, even as broader digital asset prices fell roughly 45% from October 2025 highs. This suggests USDC adoption is increasingly driven by real-world utility rather than speculative trading.

The Arc Network Launch Could Be a Game-Changer

Circle is not resting on its stablecoin laurels. The company just announced a presale of the Arc token, raising $222 million at a $3 billion fully diluted network value. The investor lineup reads like a who's who of institutional finance, including a16z crypto, Apollo Funds, BlackRock (BLK), Intercontinental Exchange (ICE), and Standard Chartered Ventures.

Arc is designed as a general-purpose blockchain network built natively for stablecoin transactions, capital markets applications, and AI-powered commerce. Circle Chief Financial Officer Jeremy Fox-Geen noted that when Arc tokens are created and delivered, their value will flow directly into Circle's other revenue line, with potential impacts on adjusted EBITDA that the company plans to quantify on its next earnings call.

The payments business is also gaining momentum. Annualized total payment volume on Circle's CPN network reached $8.3 billion at quarter-end and was approaching $10 billion as of early May, up roughly 75% since the prior reporting period.

The Bottom Line on Circle Stock

SoftBank's exit makes for a striking headline. But one institutional seller does not change the underlying story at Circle. USDC is growing fast, the enterprise use case is broadening, and the Arc launch could open up an entirely new revenue stream.

Analysts tracking CRCL stock forecast revenue to increase from $2.75 billion in 2025 to $5.5 billion in 2028. In this period, free cash flow is also projected to expand from $474 million to $1 billion.

Out of the 23 analysts covering Circle stock, 11 recommend a “Strong Buy,” one recommends a “Moderate Buy,” nine recommend a “Hold,” and two analysts have a “Strong Sell” rating. The average price target is $137.79, suggesting 22% potential upside from current levels.

For long-term investors willing to hold through the volatility that comes with any emerging fintech company, Circle looks like a name worth owning right now.