Circle Secures $222M Through ARC Token Private Sale at $3B Valuation
The USDC stablecoin issuer Circle completed a $222 million ARC token private placement with a16z crypto leading the round, while first-quarter revenue reached $694 million and USDC supply grew to $77 billion.
In a private placement transaction led by a16z crypto, Circle Internet Group has successfully completed the sale of 740 million ARC tokens, generating $222 million in proceeds. The deal establishes a $3 billion fully diluted valuation for the Arc blockchain network.
The stablecoin giant, which trades on the New York Stock Exchange and issues USDC, announced the token presale on Monday in conjunction with releasing its financial performance for the first quarter of 2026. The quarterly results revealed increased revenue and reserve income figures, though net income declined from the previous period.
Investment firm a16z crypto spearheaded the funding round, which attracted participation from a notable group of investors 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.
The token purchase agreements were finalized by Circle on Friday, with the company agreeing to price each ARC token at $0.30 through a private placement structure that qualifies for exemption from registration requirements under the US Securities Act of 1933.
This transaction represents a significant milestone in Circle's strategic expansion beyond its core stablecoin business into the broader blockchain infrastructure sector. The company has ambitions to develop Arc as a foundational settlement layer catering to stablecoin finance, tokenized assets and programmable financial markets.
The Arc blockchain network was initially unveiled by Circle in August 2025 as an open layer-1 blockchain platform with a specific focus on stablecoin finance applications. Alongside Monday's presale announcement, the company released a comprehensive whitepaper characterizing ARC as a "native coordination asset" engineered to facilitate governance, security and network operations across the system.
ARC token powers Circle's "Economic OS" blockchain
According to Circle's Arc whitepaper, ARC functions as the native digital asset for its layer-1 "Economic OS" blockchain, which has been purpose-built to support stablecoin-based finance and tokenized market infrastructure.
The blockchain employs a hybrid consensus mechanism that currently utilizes permissioned validators, with a strategic roadmap to transition toward proof-of-stake (PoS) from its current proof-of-authority (PoA) consensus model.
The company disclosed that ARC has an initial fixed supply capped at 10 billion tokens, distributed across three distinct allocation categories. Approximately 60% has been designated for ecosystem development, including developer incentives, grants and initiatives supporting network expansion. Meanwhile, Circle has retained 25% to fund ongoing development activities, staking operations and governance participation.
According to Circle's allocation plan, the final 15% has been designated as a long-term strategic reserve, designed to offer flexibility and maintain stability during periods of market volatility or to address future network requirements.
Circle's Q1 revenue rises as USDC growth offsets higher costs
The primary drivers behind Circle's financial performance during the first quarter stemmed from sustained expansion in USDC circulation levels and onchain transaction activity.
USDC in circulation experienced a 28% year-over-year increase, reaching $77.0 billion by the end of the quarter, while onchain transaction volume skyrocketed by 263% to $21.5 trillion. The company's total revenue and reserve income, which encompasses earnings generated from USDC reserves alongside other business segments, climbed 20% to reach $694 million.
Despite revenue growth, net income declined by 15% to $55 million, as escalating costs exceeded revenue gains. Operating expenses surged 76% to $242 million, primarily attributable to post-IPO stock-based compensation packages and associated payroll taxes, coupled with ongoing investments in product development, distribution channels and infrastructure buildout.
Nevertheless, Circle's core business metrics demonstrated improvement, with adjusted EBITDA increasing 24% to $151 million.
During premarket trading, Circle (CRCL) shares climbed approximately 3% to $116.7, building on recent momentum, based on data from Yahoo Finance. The stock has advanced roughly 12.2% over the past month and has gained more than 40% year to date.