Circle Q3 Earnings Boosted by ARC Token Presale

Circle’s third-quarter financial results show a significant revenue jump, reaching $865 million, a 17% increase year-over-year. This growth was substantially fueled by $182 million generated from the presale of ARC, the native token for Circle's new Arc blockchain. The presale initiative dramatically boosted Circle's "other revenue" to $207 million, a sharp rise from $29 million in the previous year.

Despite the strong performance in token sales, income derived from Circle's reserves, primarily interest earned on assets backing its stablecoin USDC, experienced an 8% decline, falling to $658 million. This decrease is attributed mainly to a drop in the reserve return rate to 3.5%. However, an 8% growth in average USDC in circulation helped to partially offset this reduced rate.

The company also reported a 5% increase in net income from continuing operations, reaching $226 million. Adjusted EBITDA saw a notable 85% surge to $317 million, which Circle attributed to the ARC token presale revenue and reduced distribution costs. In a separate development, Circle confirmed a workforce reduction of approximately 5%, citing a need to align its structure with strategic priorities. This restructuring incurred $9.1 million in charges during the quarter.