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Circle Tops Q3 Estimates as USDC Soars, but Shares Slide on Rate Fears

A drop in reserve yields highlighted the company’s exposure to interest‑rate cuts.

Overview

  • Circle reported $740 million in total revenue and reserve income, net income of $214 million, and earnings per share of $0.64, beating forecasts.
  • USDC in circulation reached $73.7 billion, up 108% year over year, with reserve income about $711 million as yields eased.
  • CRCL fell as much as roughly 10% after results, with management noting the reserve return rate declined by about 96 basis points to around 4.2%.
  • The company raised full‑year guidance for Other Revenue to $90–$100 million and lifted adjusted operating expense guidance to $495–$510 million.
  • Circle expanded beyond reserve income with the Arc public testnet involving 100+ firms and said it is exploring a native Arc token, while its Circle Payments Network now counts 29 enrolled institutions operating across eight countries with annualized flows near $3.4 billion.