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

Buyers in Circle's $222 million ARC presale hold repayment rights if Arc has not moved to proof-of-stake by May 2028, a May filing shows. Circle’s (CRCL) third-quarter revenue and reserve income rose 17% to $865 million, as per the company’s latest Q3 earnings report. The total included $182 million from the presale of ARC, the native token of Circle’s Arc blockchain. The presale lifted other revenue to $207 million from $29 million a year earlier. Reserve income, the interest Circle earns on the assets backing USDC, fell 8% to $658 million. Circle said the decline came mainly from a 61 basis point drop in its reserve return rate, to 3.5%. Average USDC in circulation grew 8% to $73.3 billion, which partly offset the lower rate. Presale Comes With Repayment Rights Net income from continuing operations rose 5% to $226 million. Adjusted EBITDA climbed 85% to $317 million, which Circle said reflected the presale revenue and lower distribution costs. As CryptoPotato reported, the company agreed in May to sell 740 million ARC tokens at $0.30 each, a sale that raised about $222 million from investors led by a16z crypto. The token agreements give buyers repayment rights in specified cases....