Circle cut about 5% of staff as its core income fell
The USDC issuer disclosed the layoffs in its Q3 earnings footnotes, according to Bitcoin Magazine, as a one-off token sale lifted revenue to $865 million.
The facts
- Circle cut about 5% of its workforce in the third quarter, disclosed in the footnotes of its earnings report, according to Bitcoin Magazine. It booked a $9.1 million restructuring charge and did not say how many staff or which teams were affected.
- Revenue rose 17% to $865 million and net income rose 5% to $226 million. Reserve income fell 8% to $658 million as the reserve return rate dropped 61 basis points to 3.5%.
- Other revenue jumped to $207 million from $29 million, with $182 million from the private presale of ARC, the token for Circle's Arc blockchain. Without it, total revenue would have declined, per the report.
- Average USDC in circulation grew 8% to $73.3 billion, but quarter-end circulation was flat year over year at $73.9 billion. Circle's share of the fiat-backed stablecoin market slipped to 27%.
Case notes · Danny's take
Why it matters
The headline says growth. The footnotes say something else. Circle's main business, earning interest on the reserves behind USDC, shrank as yields fell, and a one-time token sale filled the gap. That's the pattern to learn: always read the footnotes before the headline. A stablecoin issuer that depends on interest rates is exposed when rates fall, and Circle is spending on Arc and the Tazapay deal while trimming staff.
For traders
Don't trade the headline revenue figure. Watch reserve income and the reserve return rate next quarter, plus USDC circulation and market share, since those show whether the core business is recovering. Treat the ARC presale as a one-off when comparing quarters.
For builders
The GENIUS Act takes effect on 18 January, bringing federal licensing and reserve rules for stablecoin issuers. If you build on USDC or plan your own stablecoin product, track how Circle handles that compliance. Arc launched with more than 100 institutional builders, so it is worth watching as a payments rail.
Not financial advice. Do your own investigation.
This story was summarised with AI from Bitcoin Magazine's reporting and checked against our editorial policy. Danny's take reflects his views. Disclaimer.
Danny Walter
Founder of Moon Republic, Volt Terminal and Moon Republic Academy. Author of The Market Is a Crime Scene and After the Applause.