Circle Internet Group shares fell 10% as crypto stocks slid with the market and seven firms cut their price targets. Bitcoin and the Nasdaq each dropped 5%, and Robinhood also fell 10%. Circle reported third-quarter revenue of $865 million, but $182 million came from a one-time presale of its ARC token. Without it, revenue was $683 million, down from $740 million a year earlier. Income on the reserves behind USDC fell 8% to $658 million. JPMorgan said the beat came from a lower tax rate and higher presale revenue, and that the core business is slowing. Mizuho called the quarter "uneventful." Wells Fargo expects the renewed Binance contract to weigh on fourth-quarter margins. Circle's payments network reached an annualised volume of over $41 billion, up 181% from the second quarter.

Circle chief executive officer Jeremy Allaire warned that advanced AI is sharply raising risks for critical infrastructure. He said everyone should assume they are under attack. Speaking on Yahoo Finance, Allaire said the shift to agentic computing at scale, about six months ago, has sped up change. He said hospitals, energy systems, utilities, and financial firms all face risk, and called for a new operating model and closer public-private coordination. Circle's third-quarter revenue and reserve income rose 17% year over year to $865 million. Adjusted operating profit climbed 85% to $317 million. USDC on-chain transaction volume jumped 49% to a record $13.9 trillion. Circle also agreed to buy payments platform Tazapay in a $400 million all-stock deal.

Circle's $182M ARC token sale drives Q3 growth while USDC onchain volume hits $13.9T. November 5, 2026 Key Takeaways: * Circle raised an additional $182 million in the ARC token presale during Q3. * Onchain transaction volume rose almost 50% YoY for USDC to $13.9 trillion. * Reserve income dropped by 8% and USDC share closed the quarter at 27%. User Score The results of Circle in the third quarter indicate that the business is becoming less reliant on reserve income. The stablecoin issuer reported being confident with the top line and the bottom line as the ARC token presale boosted revenues and USDC further onchained. Table of contents. ARC token adds $182M to Circle's revenue mix. Circle reports total revenue and a reserve income of $865 million in Q3 2026, compared to 17% growth a year ago. Much of that increase was attributable to other revenues, which rose an impressive 627% to $207 million. One of the figures allocated to the ARC token presale is $182 million. Net income from continuing operations increased five percent from the prior-year level to $226 million; adjusted EBITDA grew by 85 percent on the year to $317 million. Diluted earnings per share were up to $0.84 from $0.64 a year ago. Arc expands beyond Circle's stablecoin business. Arc launched on public mainnet on Sept. 16 with more than 100 institutional and ecosystem builders. Circle also released the initial 10 billion tokens of ARC. Security, usefulness and governance are the main features of the token as Arc moves towards a proof-of-stake format in 2027. The token sale provides Circle with additional income streams involving USDC's reserves' traditional economics. USDC volume jumps to $13.9T. Despite the weakened economic conditions of the reserve business, the activity of USDC continued to be fairly good. Average circulation for USDC during the quarter was $73.3 billion, increasing 8% over a year ago. The volume of transactions increased by 49%, reaching $13.9 trillion onchain. At the end of the quarter, USDC had $73.9 billion worth of currency in circulation. Similarly, onchain wallet addresses with more than $10 in USDC on their wallet increased 16% in a year to 7.3 million, Circle reported. The company, however, lost 183 bps from a year ago to 27% of the market in fiat-based stablecoins. Reserve income slips despite higher USDC circulation. Circle's reserves decreased $8 million to $658M. The largest pressure was from the reserve return rate, which fell 61 basis points to 3.5%. That was tempered a bit by a rise in circulation of the USDC. The effect of distribution, transaction and other costs decreased by 8% to $412 million, which helped Revenue less Distribution costs total $453 million. Circle adopted a multi-years target to increase the circulation of USDC at a compound annual rate of 40% through market cycles. It also impacted other revenues in 2026 with a guidance of $310 million to $330 million, which encompasses amounts from recognized ARC token presale revenue. Isabella Flores Blockchain Adoption Reporter Isabella specializes in tracking how blockchain technology is transforming industries worldwide. She previously worked as a business analyst for a fintech startup before pivoting to journalism. Her pieces explore the real-world applications of blockchain, from supply chain to healthcare. Isabella is passionate about highlighting underrepresented use cases in the crypto space.