Circle Internet Group sold 740 million ARC tokens for $222 million in a private placement led by a16z crypto. The presale values the Arc blockchain network at $3 billion on a fully diluted basis. The New York Stock Exchange-listed issuer of the USDC stablecoin disclosed the token presale Monday alongside its first-quarter 2026 results.
The round was led by a16z crypto and backed by a consortium including BlackRock, Apollo Funds, ARK Invest, Bullish, General Catalyst, Haun Ventures, Intercontinental Exchange, IDG Capital, Janus Henderson Investors, Marshall Wace, SBI Group and Standard Chartered Ventures. Circle entered into the token purchase agreements on Friday, agreeing to sell the ARC tokens at $0.30 each in a private placement exempt from registration under the US Securities Act of 1933.
Circle ARC token presale marks infrastructure push
The sale marks a major step in Circle’s effort to expand beyond stablecoin issuance into blockchain infrastructure. The company is building Arc into a settlement layer for stablecoin finance, tokenised assets and programmable financial markets. Circle first introduced Arc in August 2025 as an open layer-1 blockchain focused on stablecoin finance. It also published a whitepaper on Monday, describing ARC as a native coordination asset designed to support governance, security and network operations on the system.
The network uses a hybrid consensus approach, combining permissioned validators with a planned shift toward proof-of-stake from the proof-of-authority consensus model. ARC has a fixed initial supply of 10 billion tokens allocated across three buckets. About 60% is going to the ecosystem for developers, grants and network growth, whilst 25% is reserved for Circle to support development, staking and governance participation. The company said the remaining 15% is set aside as a long-term reserve to provide flexibility and stability during market stress or future network needs.
Q1 revenue climbs as USDC circulation hits $77 billion
Circle’s financial performance in the first quarter was driven primarily by continued growth in USDC circulation and transaction activity. USDC in circulation rose 28% year over year to $77.0 billion at quarter end. Onchain transaction volume surged 263% to $21.5 trillion. Total revenue and reserve income, which includes earnings from USDC reserves and other business lines, rose 20% to $694 million.
| Metric | Q1 2026 | Q1 2025 | Change |
|---|---|---|---|
| USDC in circulation | $77.0bn | $60.2bn | +28% |
| Onchain transaction volume | $21.5tn | $5.9tn | +263% |
| Total revenue and reserve income | $694m | $578m | +20% |
| Net income | $55m | $65m | -15% |
| Adjusted EBITDA | $151m | $122m | +24% |
| Operating expenses | $242m | $137m | +76% |
Net income fell 15% to $55 million, as higher costs outweighed revenue growth. Operating expenses rose 76% to $242 million, driven mainly by post-IPO stock-based compensation and related payroll taxes, along with continued investment in product, distribution and infrastructure. Adjusted EBITDA rose 24% to $151 million.
CRCL shares extend gains in premarket trading
Circle shares were up around 3% in premarket trading to $116.7, extending recent gains, according to reports. The stock is up around 12.2% over the past month and more than 40% year to date. The New York Stock Exchange-listed company is using the Circle ARC token presale to fund its infrastructure expansion whilst maintaining the cash generation from its core stablecoin business.
The question is whether the Arc network can gain the adoption Circle is pricing in. The token sale attracted heavy institutional backing, but the ecosystem allocation needs developer uptake to justify the $3 billion valuation. Next catalyst: the rate at which developers deploy on Arc and whether USDC circulation holds above $77 billion into Q2.
This article is for information purposes only and does not constitute investment advice. Readers should not act on any information contained here without first consulting an authorised financial adviser. Past performance is not a reliable indicator of future results.
