Updated Shares of Circle rose over 9% on 11 May as the stablecoin issuer reported a 20% year-on-year rise in total revenue and reserve income and unveiled a $222mn token presale backed by some of the largest names in institutional finance.
Circle Stock Rises 9% on Q1 Earnings Beat, $222mn Arc Presale
11 May 2026 - 14:56 CEST
By Matt Neill
The stock was trading at around $124.00 as of 15:00 UTC, up about 9.1% from the Friday close.
USDC in circulation reached $77bn at the end of the quarter, up 28% year-on-year, while onchain transaction volume surged 263% to $21.5tn.
Adjusted EBITDA rose 24% to $151mn. Net income from continuing operations fell 15% to $55mn, weighed down by higher post-IPO stock-based compensation and increased investment in product and infrastructure.
Reserve income of $653mn grew 17%, driven by the expansion in average USDC in circulation, partially offset by a 66 basis point decline in the reserve return rate as interest rates eased.
Circle's stock closed at $121.80 on 6 May and has risen sharply in recent weeks, gaining more than 19% on 4 May alone after progress on the CLARITY Act removed a key obstacle to US stablecoin legislation.
Arc presale draws heavyweights
Alongside its earnings, Circle disclosed that it had raised $222mn in a presale of ARC, the native token of its new Arc blockchain, at a fully diluted network valuation of $3bn. Andreessen Horowitz led the raise with a $75mn commitment.
Participants include BlackRock, Apollo Funds, and Intercontinental Exchange, alongside a slate of institutional investors.
Arc is a public blockchain designed for institutional finance. Circle holds a 25% stake in the initial token supply of 10bn tokens, with 60% allocated to network participants and 15% to a long-term reserve.
"Circle’s first quarter reflected strong execution against a much bigger opportunity: the rapid convergence of AI platforms and economic operating systems into a new internet stack," said Circle CEO Jeremy Allaire.
"With the ARC token presale, momentum behind the Arc network, and the launch of our Agent Stack, we are building trusted infrastructure for AI-native economic activity and a more programmable internet financial system."
Stablecoin market position strengthens
USDC represented 63% of stablecoin transaction volumes in the first quarter, according to Visa Onchain Analytics, and Circle's USYC tokenized money market fund became the largest of its kind globally as of 7 May.
Meaningful wallets, defined as those holding more than $10 in USDC, reached 7.2mn, up 47% year-on-year. Circle's Circle Payments Network recorded $8.3bn in annualized transaction volume based on trailing 30-day activity as of 31 Mar.
The company affirmed its prior guidance, projecting a 40% compound annual growth rate for USDC in circulation over a multi-year cycle and full-year adjusted operating expenses of $570mn to $585mn.
