Circle’s revenue rose 17% to $865 million, including $182 million from a presale of its ARC token, even as interest income on USDC reserves declined.
Circle reported Third-quarter revenue of $865 million, up 17% from a year ago, and adjusted earnings of 84 cents per share, beat analyst forecast of $778 million and 37 cents. Net income from continuing operations increased 5% to $226 million.
What’s the scoop?
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The ARC Boost: $182 million came from a private presale of ARC, the native token of Circle’s Arc blockchain, launched in September. The ARC will be used to secure and govern the network, with staking planned for 2027.
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The core business: Reserve income, the interest that Circle earns on assets supporting USDC, fell 8% to $658 million as rates fell. USDC has an average of $73.3 billion in circulation, up 8%, while on-chain volume increased 49% to $13.9 billion.
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The cuts: Also circle disclosed a workforce reduction of about 5% and restructuring costs of $9.1 million, without saying how many people were laid off.
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Elsewhere in the circle: The company agreed to buy Singaporean payments company Tazapay and maintained its full-year guidance, and CoinDesk note Circle reported a $100 million investment from Binance as the highlight of the quarter. CRCL slipped about 1% premarket.
David Christophe
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David is a writer/analyst at Bankless. Before joining Bankless, he worked for a series of early-stage crypto startups and with grants from the Ethereum, Solana and Urbit foundations. He graduated from Skidmore College in New York. He currently lives in the Midwest and enjoys NFTs, but no longer participates in them.
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