CoinDesk
Circle reported third-quarter net income from continuing operations of $226 million, up 5% year over year. Adjusted earnings were 84 cents per share, beating the 37-cent analyst forecast, while revenue and reserve income totaled $865 million, more than 11% above estimates of $778 million.
Why it matters
Onchain transaction volume for USDC rose 49% to $13.9 trillion, a sharp increase in activity for Circle’s flagship stablecoin. Circle also reported $182 million in revenue from the private presale of ARC, the native token of its Arc blockchain.
The quarter’s other highlighted developments included Arc’s public mainnet debut, an agreed acquisition of Singapore payments network Tazapay, and a $100 million investment from Binance. Together, the results put stablecoin activity and new blockchain initiatives at the center of Circle’s growth story.
Market impact
The earnings beat came alongside a 5% workforce reduction and a $9.1 million restructuring charge. Circle said the cuts were designed to better align its organizational structure with its operating model.
CRCL shares fell about 1.2% in premarket trading to $74.33, after rising 4.36% to $75.22 in the prior session. Investors are weighing strong USDC volume and earnings against the restructuring and the company’s broader expansion plans.
Frequently asked questions
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How much did Circle’s USDC transaction volume grow in the third quarter?
USDC onchain transaction volume rose 49% to $13.9 trillion.
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How did Circle’s adjusted earnings compare with analysts’ expectations?
Adjusted earnings were 84 cents per share, above the 37-cent analyst forecast.
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What did Circle report for revenue and reserve income?
Revenue and reserve income totaled $865 million, more than 11% above estimates of $778 million.
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What contributed $182 million in revenue for Circle?
The private presale of ARC, the native token of Circle’s Arc blockchain, generated $182 million in revenue.
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What restructuring did Circle disclose, and how did CRCL trade?
Circle cut its workforce by 5% and recorded a $9.1 million restructuring charge. CRCL fell about 1.2% in premarket trading to $74.33.
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