Circle Q3 Revenue Rises 17% to $865M on ARC Token Sale as Reserve Income Falls

Circle reported third-quarter revenue and reserve income of $865 million, up 17%, including $182 million from preselling ARC, the native token of its Arc blockchain. Reserve income, interest earned on assets backing USDC, fell 8% to $658 million as its reserve return rate dropped 61 basis points to 3.5%, partly offset by average USDC circulation rising 8% to $73.3 billion. In May, Circle agreed to sell 740 million ARC tokens at $0.30 each, raising about $222 million from investors led by a16z crypto; buyers have repayment rights if Arc has not moved to proof-of-stake by May 8, 2028. Circle also disclosed a roughly 5% workforce reduction costing $9.1 million in restructuring charges.