Circle’s ARC token sale lifts earnings as lower yields weigh on USDC income — SkimNews
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- Circle reported diluted earnings per share of $0.84, up from $0.64 a year earlier and double analysts’ expectations of $0.42; total revenue and reserve income rose 17% to $865 million, while shares were down 0.84% at $74.59 at 4:05 p.m. UTC on Nov. 4.
- ARC supplied $182 million in presale revenue; without it, Circle’s total revenue and reserve income was $683 million, roughly 8% below a year earlier, and adjusted EBITDA fell 21% to about $135 million from $171 million.
- USDC ended September at $73.9 billion in circulation as average circulation grew 8% year over year, but its reserve return fell 61 basis points to 3.5% and reserve income declined 8% to $657.6 million.
- Open USD went live on Solana by Sept. 30 with Coinbase, Mastercard, Shopify, Stripe and Visa as founding partners; the model distributes reserve earnings to partners after a management fee, while USDC’s market share fell 1.83 percentage points to 27%.
- Arc went live on public mainnet on Sept. 16, 2026; its native ARC token is intended to support network security and governance ahead of a 2027 proof-of-stake transition, and transaction fees are paid in USDC.
- Circle launched its payments network in May 2025 to connect financial institutions settling cross-border payments with stablecoins; CFO Jeremy Fox-Geen said Circle expected material CPN revenue in 2027, while CEO Jeremy Allaire described multiple “compounding flywheels” across the platform.
- Circle disclosed a workforce reduction affecting approximately 5% of employees to align its organization with its operating model and strategic priorities.
Why it matters: Circle’s core USDC franchise is tied to reserve yields: reserve income fell 8% to $657.6 million even as circulation reached $73.9 billion and average circulation grew 8%. The $182 million ARC presale offset that weakness, but excluding it, revenue fell about 8%, making the headline beat dependent on that contribution rather than stronger core operations.
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