--- title: "Circle booked $182 million selling its own token while USDC circulation stayed flat at $73.9 billion" description: "Circle booked $182 million from presales of ARC, its own new network token, while the reserve engine that pays the bills shrank and USDC circulation ended flat. The filing's risk factors even raise repaying presale buyers if launch milestones slip." publisher: "The Inference" section: "Economy" published: 2026-11-04T14:05:19.609Z modified: 2026-11-04T14:05:19.609Z canonical: https://theinference.org/article/circle-booked-182-million-selling-its-own-token-while-usdc-circulation-stayed-flat-at-73-9-billion language: en keywords: "Stablecoins, Circle, Crypto, Earnings, USDC" --- # Circle booked $182 million selling its own token while USDC circulation stayed flat at $73.9 billion > Circle booked $182 million from presales of ARC, its own new network token, while the reserve engine that pays the bills shrank and USDC circulation ended flat. The filing's risk factors even raise repaying presale buyers if launch milestones slip. ## A token presale made the quarter [Circle's](https://theinference.org/markets/companies/circle) third quarter printed as a blowout: [revenue and reserve income of $865 million](https://www.sec.gov/Archives/edgar/data/1876042/000187604226000309/0001876042-26-000309-index.htm), up 17% year over year, and diluted earnings of 84 cents a share against a 38-cent consensus [1][2][3]. The growth, though, came from a strange place. Other revenue jumped 627% to $207 million, and $182 million of that was revenue recognized from presales of ARC, the token for Circle's own new blockchain [1]. ## What the presale buyers hold The presale [raised roughly $222 million at a $3 billion valuation](https://cryptobriefing.com/circle-q3-earnings-arc-mainnet-launch/) [4]. In September, Circle minted the full 10 billion token supply, the first publicly traded company to mint a network token for a layer-one blockchain [1]. What buyers hold is narrow: Arc's transaction fees are payable in USDC rather than ARC, and Circle states [the mint is not a commitment to publicly launch the token at all](https://www.businesswire.com/news/home/20260916108863/en/Circle-Launches-Arc-Mainnet-an-Economic-Operating-System-for-the-Internet) [5]. The filing's own risk factors warn of possible repayment obligations to presale participants if key launch milestones are missed [1]. ## The interest engine ran backward Reserve income, the interest Circle earns on the Treasuries backing USDC, fell 8% to $658 million as the reserve return rate dropped 61 basis points to 3.5% [1]. USDC in circulation ended the quarter flat at $73.9 billion, and stablecoin market share slipped to 27% [1]. Optics did the rest: revenue less distribution costs rose 55% to $453 million and adjusted EBITDA climbed 85%, while net income grew 5% and a footnote disclosed a 5% workforce cut costing $9.1 million [1][6]. *Chart: **Q3 growth came from a token presale, not the reserve engine** Column chart of Circle's quarterly revenue split between reserve income and other revenue from Q3 2025 to Q3 2026, with other revenue spiking to $207M in Q3 2026* *Quarterly revenue and reserve income split, millions of dollars. Source: Circle Q3 2026 earnings 8-K. [1]* ## The bulls wrote checks; 2027 grades them Real money backed the other side. [Binance](https://theinference.org/markets/companies/binance) announced a $100 million equity investment and renewed its USDC partnership, and Visa moved stablecoin prefunding into commercial deployment [1]. [Half of 36 analysts rate the stock a Buy and four a Sell](https://www.msn.com/en-us/money/other/circle-s-earnings-beat-is-a-sign-stablecoins-have-arrived-a-payoff-for-crypto-stocks-may-take-longer/ar-AA2gGKEq): Mizuho's Dan Dolev targets $43, arguing AI assistants such as [Meta](https://theinference.org/markets/companies/meta)'s Muse will steer savers toward insured high-yield accounts, while H.C [2]. Wainwright's $104 target treats Arc as the escape from reserve dependency [2]. ## The tell is October, then 2027 Circle left guidance unchanged: $310 million to $330 million of other revenue for 2026, presale already inside, and a 40% multiyear USDC growth target that a flat quarter does not yet support [1]. The Tazapay acquisition and Arc's shift to proof of stake both land in 2027 [1]. October flows will show whether circulation holds after [the $6.3 billion Binance hack, in which Circle helped freeze $2.38 billion](https://finance.yahoo.com/markets/crypto/articles/circle-down-48-high-binance-131505228.html) [8]. Six weeks into mainnet, [four wallets hold 73% of the $1 billion of USDC on Arc](https://bitcoinist.com/circles-arc-crosses-1-billion-in-usdc/) [9]. A presale fires once. ## Takeaway Circle's Q3 beat leans on a one-time $182 million ARC token presale while reserve income fell 8% and USDC circulation stayed flat at $73.9 billion, leaving 2027's Arc buildout to prove the model beyond interest on Treasuries. ## Sources 1. [SEC EDGAR, Circle Internet Group Form 8-K, Q3 2026 results, 4 November 2026](https://www.sec.gov/Archives/edgar/data/1876042/000187604226000309/0001876042-26-000309-index.htm) 2. [Barron's (via MSN), Circle's earnings beat is a sign stablecoins have arrived, 4 November 2026](https://www.msn.com/en-us/money/other/circle-s-earnings-beat-is-a-sign-stablecoins-have-arrived-a-payoff-for-crypto-stocks-may-take-longer/ar-AA2gGKEq) 3. [24/7 Wall St., Circle Internet Group Q3 2026: A 122% EPS Beat Built on One-Time Token Revenue, 4 November 2026](https://247wallst.com/cards/circle-internet-group-q3-2026-earnings-crcl-01m6k570k1500d1r88qdfvghb3) 4. [Crypto Briefing, Circle beats Q3 earnings estimates as Arc mainnet goes live with 100+ partners, 4 November 2026](https://cryptobriefing.com/circle-q3-earnings-arc-mainnet-launch/) 5. [Business Wire, Circle Launches Arc Mainnet, an Economic Operating System for the Internet, 16 September 2026](https://www.businesswire.com/news/home/20260916108863/en/Circle-Launches-Arc-Mainnet-an-Economic-Operating-System-for-the-Internet) 6. [BeInCrypto, Circle Layoffs Hit 5% of Staff in a Profitable Quarter: Why Now?, 4 November 2026](https://beincrypto.com/circle-layoffs-5-percent-workforce-q3/) 8. [Yahoo Finance, Circle Is Down 48% From Its High After Binance's $6.3 Billion Heist, 2 November 2026](https://finance.yahoo.com/markets/crypto/articles/circle-down-48-high-binance-131505228.html) 9. [Bitcoinist, Circle's Arc Crosses $1 Billion in USDC, 28 October 2026](https://bitcoinist.com/circles-arc-crosses-1-billion-in-usdc/) --- Circle booked $182 million selling its own token while USDC circulation stayed flat at $73.9 billion — The Inference. Canonical: https://theinference.org/article/circle-booked-182-million-selling-its-own-token-while-usdc-circulation-stayed-flat-at-73-9-billion