USDC Issuer Circle Reports $740M Revenue in Q3, Beating Analyst Forecasts

USDC stablecoin issuer Circle reported $740 million in revenue and reserve income for Q3, surpassing analyst forecasts with a 66% year-on-year increase.

"Circle continued to see accelerating adoption of USDC and our platform in the third quarter as we build the new Economic OS for the internet,” said Circle Co-Founder and CEO Jeremy Allaire, in a press release.

He pointed to the successful launch of the Arc public testnet in October, with participation from over 100 companies including BlackRock, Visa, Goldman Sachs, AWS, and crypto exchanges Coinbase and Kraken.

In its statement, Circle noted that it is "exploring the possibility" of a native Arc token launch.

Circle Opens Arc Testnet With BlackRock, Visa, AWS Among Its Participants

The Zacks Consensus Estimate for third-quarter revenues was pegged at $708.92 million, based off of predictions from four different analysts. The consensus mark for earnings is currently pegged at 17 cents per share, revised upward by 5 cents over the past 30 days.

The company made its debut on the NYSE in June. Since the company went public, USDC's market capitalization has climbed from $61 billion to nearly $76 billion at the time of writing, according to crypto price aggregator CoinGecko.

Analysts are expecting the stablecoin issuer will see a total of $2.68 billion in revenue this year. But that optimism wasn't evident in the company's share price heading into Wednesday.

The company reported early Wednesday morning, before the opening bell in New York. Circle, which trades on the New York Stock Exchange under the CRCL ticker, closed on Tuesday at $98.30 after having fallen 5.57% during the session. About an hour before the company's earnings report, shares had fallen further to $94.04 in pre-market trading.

The company is coming off a mixed Q2 report, when it reported a 53% increase in year-over-year revenue and a net loss of $4.48 per share. It was around that time the company unveiled plans for its L1 blockchain, Arc. The blockchain is optimized for stablecoin-focused applications. Arc will use USDC for gas, features a built-in FX engine, and enables opt-in privacy.

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