Circle’s $182 million crypto token sale masks revenue decline as USDC business weakens

Circle's $182 million ARC token presale drove its third-quarter earnings surprise even as its core USDC reserve income declined.The stablecoin issuer reported adjusted EBITDA of $317 million, substantially exceeding Wall Street's $218 million consensus estimate and Clear Street's $220 million forecast.However, the investment bank said the earnings beat was primarily driven by ARC token presale revenue, which exceeded its $90 million projection by $92 million. Excluding that contribution, Circle's adjusted EBITDA would have been approximately $135 million, down from $143 million in the preceding quarter.The same divergence appeared in revenue. Circle reported a 17% increase in total revenue and reserve income to $865 million, but excluding the token presale would have left approximately $683 million, below the $740 million recorded a year earlier.Its traditional reserve business remained under pressure despite growing stablecoin adoption. Reserve income fell 8% to $658 million as the average yield on USDC reserves declined by 61 basis points to 3.5%, offsetting an 8% increase in average circulation.01 / THE ACCOUNTING SPLIT$242.2MPresale gross proceeds$181.8M$60.4MRecognized in Q3De...