Circle Raises $222M in ARC Presale, Values Arc at $3B

TLDR

• Circle raised $222 million by selling 740 million ARC tokens in a private placement.
• The ARC token sale valued the Arc blockchain network at $3 billion on a fully diluted basis.
• Circle priced each ARC token at $0.30 under an exemption from the US Securities Act of 1933.
• The funding round was led by a16z Crypto with participation from major global investors.
• Circle reported a 20% rise in total revenue and reserve income to $694 million in the first quarter.

Circle secured $222 million through a private sale of 740 million ARC tokens at $0.30 each. The deal values the Arc blockchain at $3 billion on a fully diluted basis. The New York Stock Exchange-listed USDC issuer disclosed the agreement with its first-quarter fiscal 2026 results.

Circle, USDC and Arc Token Sale Details

Circle entered token purchase agreements on Friday under a private placement exemption. The company priced each ARC token at $0.30 and confirmed the total raise at $222 million. The round was led by a16z Crypto and included BlackRock, Apollo Funds, ARK Invest, Bullish and others.

General Catalyst, Haun Ventures and Intercontinental Exchange also joined the consortium. IDG Capital, Janus Henderson Investors, Marshall Wace, SBI Group and Standard Chartered Ventures participated as well. Circle stated that the sale supports its expansion beyond stablecoin issuance into blockchain infrastructure.

Circle introduced Arc in August 2025 as a layer-1 blockchain for stablecoin finance. On Monday, the company released a whitepaper outlining ARC as a “native coordination asset.” The document states that ARC will support governance, security and network operations.

Circle described Arc as an “Economic OS” built for stablecoin-based finance and tokenized markets. The network uses permissioned validators and plans a shift to proof-of-stake from proof-of-authority. Circle fixed the initial ARC supply at 10 billion tokens.

The company allocated about 60% of tokens to ecosystem growth and developer grants. Circle reserved 25% for development, staking and governance participation. It set aside the remaining 15% as a long-term reserve for flexibility and stability.

Circle Reports Revenue Growth as Net Income Slips

Circle reported higher revenue and reserve income in the first quarter of fiscal 2026. Total revenue and reserve income rose 20% year over year to $694 million. The company attributed growth to rising USDC circulation and transaction activity.

USDC in circulation increased 28% to $77.0 billion at quarter end. Onchain transaction volume surged 263% to $21.5 trillion. These metrics supported stronger reserve income during the quarter.

However, Circle posted net income of $55 million, down 15% from the prior year. Operating expenses climbed 76% to $242 million. The company linked higher costs to post-IPO stock-based compensation and payroll taxes.

Circle also continued investment in product, distribution and infrastructure. Despite lower net income, adjusted EBITDA increased 24% to $151 million. The company said underlying performance improved during the period.

Circle shares traded around $116.7 in premarket hours, up about 3%. The stock has gained roughly 12.2% over the past month.

Circle Internet Group, CRCL

Year to date, Circle shares have risen more than 40%, according to KnockOutStock.

The post Circle Raises $222M in ARC Presale, Values Arc at $3B appeared first on Blockonomi.