Circle Internet Group ( CRCL ) announced third-quarter revenue and reserve income of $864.9 million, a year-on-year increase of 17%. This growth was attributed to the sales of ARC tokens as well as an increase in the usage of USDC.
In the financial report released on November 4th, the company stated that its net profit from continuing operations was $226 million, an increase of 5% compared to the same period last year; after adjustment, EBITDA reached $317 million, a year-on-year increase of 85%; USDC blockchain transaction volume increased by 49%, reaching 13.9 trillion dollars.
These achievements cover the quarter during which Circle first launched its Arc blockchain public network, and were accompanied by an increase in payment activities as well as new financial cooperation relationships.
Circle Reports diluted earnings per share of $0.84, compared to $0.64 in the same period last year. The company maintains its guidance for annual adjusted operating expenses between $570 million and $585 million.
Circle The quarterly performance growth did not mainly come from the interest earned by the assets that support USDC.
Reserve income decreased by 8% to $658 million as the average yield on these assets fell by 61 basis points to 3.5%. USDC The average circulation increased by 8% to $73.3 billion, which to some extent offset the impact of lower interest rates.
However, other revenues increased from $28.5 million in the same period last year to $207 million. The company stated that this increase mainly came from the $182 million in revenue confirmed from the pre-sale of ARC tokens.
This pre-sale accounts for approximately 21% of the total quarterly revenue. If this contribution is not taken into account, Circle's revenue and reserve income for this quarter would be about 683 million US dollars, compared to 740 million US dollars in the same period last year.
Previously, crypto.news analyzed the revenue model of Circle, pointing out that the reserve yield rate and the fees paid to distribution partners would affect the income retained by the company.
In the third quarter, distribution, transaction, and other costs decreased by 8% to $412 million. Revenue after deducting these costs was $453 million, compared to $292 million in the same period last year.
The operating expenses of Circle increased by 16% to $245 million, partly due to increased expenditures on technical infrastructure, administration, and marketing.
On September 16th, Circle launched the public mainnet of Arc, enabling its blockchain for financial applications to officially operate and natively supporting USDC.
At its inception, the network had 11 founding validators, as well as participation from over 100 institutions and ecosystem builders, including major financial companies engaged in payment, custody, and blockchain infrastructure.
As previously reported, Arc uses USDC to pay transaction fees and supports the tokenization of financial assets.
Circle has completed the initial creation of 10 billion ARC tokens, but this does not mean that the entire supply has entered public circulation.
The company plans to transition to a Proof of Stake (proof-of-stake) system in 2027 and will continue to advance efforts in privacy and scalability.
During the Arc private mainnet phase, developers have built over 1,200 projects. Circle indicates that there are more than 75,000 members in the Arc House community, and Ambassador has reached 10,000 people.
The CEO, Jeremy Allaire, stated that Circle has launched Arc and boasts "over 100 institutions and ecosystem builders" to provide infrastructure for new financial applications.
Circle Payments Network Recorded an annualized payment volume of $41.3 billion this quarter, and the company continues to advance stablecoin payment services.
This figure refers to the annualized transaction speed, and not to the income Circle earns from payments.
This network connects financial institutions and payment service providers, using stablecoins and local banking services to process cross-border transactions.
As previously disclosed by Circle, as of the end of June, the annualized scale of this network was 14.7 billion US dollars, which means that the latest payment speed is approximately 2.8 times that of before.
The company reiterated its agreement to acquire the Singapore-based cross-border payment service provider Tazapay, with a transaction amount of approximately $400 million, and the payment method being in the form of shares.
The annual payment volume of Tazapay exceeds $25 billion. It conducts business through more than 60 banks and fintech partners and provides payment services in over 100 markets.
Approximately 60% of its trading volume already involves stablecoins. Circle The acquisition is expected to be completed in 2027, but regulatory approval is required.
This quarter's update also includes a $100 million equity investment, as well as an extension of the five-year cooperation between the two parties to promote the use of USDC on that exchange.
The investment agreement in September involved Binance purchasing approximately 1.24 million shares of Circle through private placement.
Circle reports that as of the end of September, its stablecoin market share was 27%, a decrease of 1.83 percentage points from a year ago.
In this quarter, the issuance and redemption amount of USDC was both 104 billion US dollars, while the number of wallets holding more than 10 USDC reached 7.3 million.
In addition, Circle disclosed that it laid off approximately 5% of its staff in the third quarter, and this was included in the reorganization costs of $9.15 million.
The company stated that this round of layoffs is aimed at aligning the organizational structure with its business model and strategic priorities. The related costs mainly include severance payments, employee benefits, and other associated expenses.
