Circle Stock Climbs As Profit Jumps, But A Token Sale Did The Heavy Lifting
Circle stock rose 5.0% to $75.67 in premarket trading on Wednesday after the USDC stablecoin issuer reported a 17% jump in third-quarter revenue, but most of that growth came from selling its own new ARC token.
Key Takeaways
- Circle stock traded at $75.67 in premarket trading, versus $72.08 at Tuesday’s close
- Total revenue and reserve income rose 17% to $865 million, helped by a $182 million ARC token presale
- Reserve income, Circle’s core business, fell 8% to $658 million as interest rates on its reserves dropped
- Binance made a $100 million equity investment in Circle and renewed its USDC partnership
The company reported the results on Wednesday morning. Adjusted EBITDA jumped 85%% to $317 million, and net income from continuing operations rose 5%% to $226 million.
The Token Sale Behind The Revenue Jump
Circle makes most of its money from the interest on the cash and bonds that back USDC. That reserve income fell 8% to $658 million, because the return on those reserves dropped by 0.61 percentage points, even as the average amount of USDC in circulation grew 8% to $73.3 billion.
What filled the gap was “other revenue,” which jumped 627% to $207 million. Circle said $182 million of that came from the presale of ARC, the token for its new Arc blockchain. Without the presale, total revenue would have been lower than a year ago.
| Measure | Q3 2026 | Change |
|---|---|---|
| Total revenue and reserve income | $865 million | Up 17% |
| Reserve income | $658 million | Down 8% |
| Other revenue | $207 million | Up 627% |
| Adjusted EBITDA | $317 million | Up 85% |
| Net income (continuing operations) | $226 million | Up 5% |
| USDC onchain volume | $13.9 trillion | Up 49% |
Binance Buys In
Circle said Binance made a $100 million equity investment in the company and renewed and expanded their partnership around USDC.
“Binance renewed and expanded our partnership,” said co-founder and CEO Jeremy Allaire. He also pointed to Visa taking stablecoin prefunding into commercial use, and to Tereina, a company backed by SAP, bringing USDC into SAP’s business software.
Samsung Wallet now lets eligible Galaxy users in the U.S. send money in USDC to bank accounts in more than 60 countries, according to the release.
USDC Keeps Growing, But Rivals Gain
Circle minted $104 billion of new USDC in the quarter and the number of wallets holding more than $10 of USDC rose 16% to 7.3 million. But USDC’s share of the dollar stablecoin market slipped 1.83 percentage points to 27%.
A Year Of Big Bets
Circle launched its Arc blockchain on public mainnet on Sept. 16 with more than 100 institutional and ecosystem builders, and minted 10 billion ARC tokens. It also agreed to buy Singapore payments firm Tazapay, a deal expected to close in 2027.
The company kept its forecasts unchanged, including $310 million to $330 million in other revenue for 2026.
What To Watch
With interest rates easing, Circle’s core reserve income is under pressure. The question for investors is whether USDC keeps growing fast enough, and whether Arc and the ARC token can become a lasting source of revenue rather than a one-time boost.
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