Circle raises $222M in a16z-led Arc presale, values Arc at $3B
Circle sold 740 million ARC tokens for $222 million in a private placement led by a16z crypto, valuing the Arc network at $3 billion on a fully diluted basis.
Circle agreed to sell 740 million ARC tokens at $0.30 each in a private placement led by a16z crypto, raising $222 million and valuing the Arc blockchain at $3 billion on a fully diluted basis. The company entered into token purchase agreements on Friday and disclosed the sale Monday alongside its first-quarter 2026 results.
The placement was exempt from registration under the U.S. Securities Act of 1933 and was limited to accredited investors, the filing shows. The offering was led by a16z crypto and backed by institutional 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.
Arc is a layer-1 blockchain Circle launched in August 2025 to support stablecoin-based finance and tokenized markets. A whitepaper published Monday describes ARC as the native coordination asset of an “Economic OS” intended to support governance, security and network operations.
The network currently uses permissioned validators in a hybrid consensus model and has plans to transition from proof-of-authority to proof-of-stake. ARC has a fixed initial supply of 10 billion tokens. About 60% of the supply is allocated to the ecosystem for developer incentives, grants and network growth, 25% is reserved for Circle to support development, staking and governance participation, and 15% is held as a long-term reserve.
The company presented the sale as part of a strategy to expand beyond stablecoin issuance into blockchain infrastructure and to accelerate Arc’s development and adoption. The filing states the proceeds will support Arc’s launch, network development and broader ecosystem initiatives.
Circle reported stronger top-line performance in the first quarter. USDC in circulation rose 28% year over year to $77.0 billion, while on-chain transaction volume increased 263% to $21.5 trillion. Total revenue and reserve income rose 20% to $694 million. Net income fell 15% to $55 million as operating expenses rose 76% to $242 million, driven mainly by post-IPO stock-based compensation, related payroll taxes and continued investment in product, distribution and infrastructure. Adjusted EBITDA increased 24% to $151 million.
Circle’s shares (CRCL) traded higher in premarket trading after the disclosure. The offering represents a major financing round for the Arc network.
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