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\n\t\t\t\t\t\t\t\t\tBuyers 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.\t\t\t\t\t\t\t\t<\/p>\n<\/p><\/div>\n
Circle\u2019s (CRCL) third-quarter revenue and reserve income rose 17% to $865 million, as per the company\u2019s latest Q3 earnings report.\u00a0The total included $182 million from the presale of ARC, the native token of Circle\u2019s Arc blockchain. The presale lifted other revenue to $207 million from $29 million a year earlier.<\/p>\n
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%.\u00a0Average USDC in circulation grew 8% to $73.3 billion, which partly offset the lower rate.<\/p>\n
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.<\/p>\n
As CryptoPotato reported, the company agreed in May to sell 740 million ARC tokens at $0.30 each, a sale that raised<\/a> about $222 million from investors led by a16z crypto.<\/p>\n The token agreements give buyers repayment rights in specified cases. Those rights apply, among other cases, if Arc has not switched to a proof-of-stake system by May 8, 2028. Circle launched<\/a> Arc\u2019s public mainnet on September 16, and the release says the network is working toward that switch in 2027.<\/p>\n Likewise, the stablecoin giant kept its 2026 forecast for other revenue at $310 million to $330 million, which counts presale revenue.<\/p>\n A footnote in the release discloses a workforce reduction of about 5%, and that reduction cost $9.1 million in third-quarter restructuring charges, mostly severance and notice-period payments. The reduction was designed to \u201cbetter align its structure\u201d with its operating model and strategic priorities.<\/p>\n Adjusted operating expenses, which exclude restructuring and stock-based pay, rose 13% to $139 million. Circle kept its full-year range for that measure at $570 million to $585 million.<\/p>\nCircle Cuts 5% of Staff<\/h2>\n
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