Circle’s $182 million crypto token sale masks revenue decline as USDC business weakens

Circle's $182 million ARC token presale drove its third-quarter earnings surprise even as its core USDC reserve income declined. The stablecoin issuer reported adjusted EBITDA of $317 million, substantially exceeding Wall Street's $218 million consensus estimate and Clear Street's $220 million forecast. However, the investment bank said the earnings beat was primarily driven by ARC token presale revenue, which exceeded its $90 million projection by $92 million. Excluding that contribution, Circle's adjusted EBITDA would have been approximately $135 million, down from $143 million in the preceding quarter. The same divergence appeared in revenue. Circle reported a 17% increase in total revenue and reserve income to $865 million, but excluding the token presale would have left approximately $683 million, below the $740 million recorded a year earlier.