Circle beat analyst estimates in the third quarter, with USDC onchain transaction volume up 49% to $13.9 trillion. The USDC issuer also disclosed a 5% workforce cut that carried a $9.1 million restructuring charge.
Circle, the stablecoin issuer behind USDC, grew net income for continuing operations 5% year-over-year to $226 million in the third quarter. The company announced the results on Wednesday, alongside a 5% reduction in its workforce.
Circle beats estimates on USDC volume
Circle posted adjusted earnings of 84 cents a share, some 127% higher than the forecast of 37 cents. Revenue also topped analysts' estimates of $778 million by more than 11%.
Total revenue and reserve income increased 17% to $865 million, helped by 49% growth in onchain USDC transaction volume to $13.9 trillion. Separately, $182 million of Circle's revenue came from the private presale of ARC, the native token of the Arc blockchain.
Reserve income, however, moved the other way. Reserve income fell 8% to $658 million as interest rates on the reserves declined, according to Decrypt.
Workforce cut carries a $9.1 million charge
Circle recorded a $9.1 million restructuring cost tied to the 5% cut. Decrypt reports the expenses were mostly cash payments for notice periods and severance, employee benefits and related costs.
The company said the reduction was designed to align its organizational structure with its operating model and strategic priorities. Circle did not say how many employees were affected or which teams were cut, Decrypt reports.
Shares dip before the open
CRCL shares traded 1.18% lower at $74.33 in pre-market trading, after rising 4.36% to $75.22 on Tuesday.
Circle joins other crypto firms trimming staff this year. Coinbase cut 14% of its workforce in May, according to Decrypt.
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