Circle Internet Group Gains 16% as Arc Blockchain Raise Draws Blackrock and Apollo

Circle Investors Push CRCL up 16%

Shares of CRCL traded between $129 and $134 on heavy volume, touching intraday highs near 19% before settling into the close. The session pushed Circle’s 2026 year-to-date gain to approximately 68%. The move came on the same day the company reported first-quarter 2026 earnings, which delivered a mixed picture on revenue but showed record adoption numbers for USDC, its dollar-pegged stablecoin.

Circle reported total revenue and reserve income of $694 million for Q1, up 20% year-over-year but short of some Street estimates near $715 million. Net income from continuing operations came in at $55 million, down 15% from the prior-year period, pressured by higher post-IPO stock-based compensation and growth spending. Adjusted EBITDA climbed roughly 24%.

The numbers investors focused on were the USDC metrics. USDC in circulation reached $77.0 billion at quarter-end, a 28% increase year-over-year. Onchain transaction volume processed through USDC hit $21.5 trillion for the quarter, up 263% from Q1 2025. That figure spans payments, decentralized finance (DeFi), and tokenized assets, and it showed the network handling real transaction load well beyond what the revenue line reflected.

CEO Jeremy Allaire addressed analysts on a conference call at 8:00 a.m. ET, describing the quarter as part of a broad platform shift in the financial industry. He emphasized that USDC’s growth operates independently of crypto price cycles, citing stablecoin infrastructure scaling and positioning in payments and tokenization as the core story.

The earnings release ran alongside an announcement that Circle raised $222 million in a pre-launch token sale for Arc, valuing the project at a $3 billion fully diluted valuation. Arc is an L1 blockchain designed for payments, tokenization, and what Circle calls an “Agent Stack” for AI and blockchain convergence. The raise made Circle the first public company to execute a pre-launch token sale.

Investors in the Arc raise include A16z, Blackrock, Apollo, Ark Invest, and Intercontinental Exchange (ICE). The involvement of those names shifted the conversation from a quarterly earnings beat-or-miss to a longer-term infrastructure play. Traders cited the Arc announcement as the primary catalyst for the afternoon acceleration, with the stock gapping up pre-market, dipping on the mixed financials, then climbing sharply as the raise details circulated.

Circle investors do not appear worried about the ongoing dispute between traditional bankers and stablecoin issuers and exchanges over the CLARITY Act, the bipartisan stablecoin regulatory framework advancing through Congress in early May. Retail sentiment on platforms like Stocktwits registered as extremely bullish on the session, with CRCL frequently mentioned alongside other crypto-linked names.

Other crypto equities also moved higher on Monday as well. Coinbase Global (Nasdaq: COIN) rose 7.68% intraday, trading around $216.60 with strong volume. Strategy (Nasdaq: MSTR) gained roughly 4.5%, trading over $195. Bitgo (NYSE: BTGO), which went public in January 2026, climbed approximately 3.8%, trading around $12.97 per share.

Broader U.S. equity markets closed in positive territory. The Dow Jones Industrial Average added 95.31 points to finish at 49,704.47. The S&P 500 gained 13.91 points to close at 7,412.84, an all-time high. The Nasdaq Composite climbed 27.05 points to 26,274.12, and the NYSE Composite added 23.38 points to close at 22,965.53.

Analysts watching CRCL noted that short-term volatility remains elevated for crypto-adjacent names, as gap-and-fill patterns are common. Several have flagged $150 as an upside target if USDC adoption trends hold and the Arc project gains traction in the months ahead.