Circle Q1 2026 Revenue Hits $694M as Arc Raises $222M at $3B Valuation

• USDC circulation rose 28% to $77B, while on-chain transaction volume jumped 263% year-over-year to $21.5T.
• Circle raised $222M for ARC at a $3B valuation with backing from BlackRock, a16z crypto, Apollo, and SBI Group.
• Operating expenses climbed 76%, but adjusted EBITDA still increased 24% as Circle expanded AI and payment infrastructure.

Circle reported $694 million in first-quarter 2026 revenue and reserve income, marking a 20% year-over-year increase as USDC circulation climbed to $77 billion. The stablecoin issuer also disclosed a $222 million ARC token presale at a $3 billion fully diluted valuation, with backing from firms including a16z crypto, BlackRock, Apollo, Intercontinental Exchange, and SBI Group.

Circle said USDC circulation increased 28% from the same period last year, reaching $77 billion by quarter-end. Meanwhile, USDC on-chain transaction volume surged 263% year-over-year to $21.5 trillion during the quarter.

The company reported reserve income of $653 million, up 17% from a year earlier. Circle attributed the increase to higher average USDC circulation, although lower reserve return rates partially offset gains.

Other revenue reached $42 million, rising by $21 million year-over-year. According to Circle, transaction revenue alongside subscription and service revenue contributed to the increase.

However, operating expenses climbed sharply during the quarter. Circle reported $242 million in operating expenses, up 76% year-over-year, primarily due to stock-based compensation and infrastructure investments.

Despite higher expenses, adjusted EBITDA increased 24% to $151 million. Net income from continuing operations reached $55 million, although it declined 15% compared to the previous year.

Alongside earnings, Circle announced a $222 million presale for the ARC token. The sale valued the Arc blockchain network at $3 billion on a fully diluted basis.

According to Circle, investors included a16z crypto, Apollo Funds, ARK Invest, BlackRock, Bullish, General Catalyst, Haun Ventures, Intercontinental Exchange, Janus Henderson Investors, Marshall Wace, SBI Group, and Standard Chartered Ventures.

Circle also released the ARC token whitepaper, outlining the token’s role in governance, network security, and operational coordination across Arc infrastructure.

Circle stated that Arc infrastructure will support AI-native financial activity alongside programmable payment systems. During the quarter, the company launched several tools under its “Agent Stack” initiative.

Those products included Circle CLI, Agent Wallets, and Agent Marketplace. According to Circle, the tools allow developers and merchants to build and monetize agent-driven activity using USDC across multiple blockchains.

The company also expanded its Circle Payments Network. Circle said annualized transaction volume across the network reached $8.3 billion based on trailing 30-day activity through March 31, 2026.