Cathie Wood’s Ark Invest Seizes Opportunity in Circle’s Stock Decline
Ark Invest has made a bold move by purchasing $30.5 million worth of Circle Internet Group shares across three of its exchange-traded funds (ETFs), capitalizing on a sharp price drop that followed the company’s latest earnings report. Despite Circle’s strong financial performance, its stock fell 12.2% to close at $86.3, prompting Ark to expand its position.
The investment was spread across the ARK Innovation ETF (ARKK), which bought 245,830 shares, the ARK Next Generation Internet ETF (ARKW) with 70,613 shares, and the ARK Fintech Innovation ETF (ARKF) with 36,885 shares.
Circle Reports Strong Growth Despite Market Selloff
The selloff came even as Circle — the issuer of the USDC stablecoin — reported robust results for the third quarter. The company posted $740 million in total revenue, up 66% year-on-year, and a 202% surge in net income to $214 million.
USDC’s circulating supply reached $73.7 billion, representing a 108% increase from the same period last year. These figures highlight Circle’s growing dominance in the digital payments and stablecoin markets.
“We see Circle as a clear leader in a winner-take-most market,” analysts at William Blair wrote in a research note, maintaining an “outperform” rating on the stock. They encouraged investors to “build positions on weakness” following the decline.
Analysts See Long-Term Potential Amid Regulatory Challenges
The William Blair report acknowledged several key risks, including regulatory uncertainty, market competition, and stablecoin infrastructure limitations. However, analysts emphasized that Circle’s focus on blockchain-based payment networks could cement its position as a core player in global digital finance.
Circle also revealed it is “exploring the possibility” of launching a native token for its Arc blockchain, following the public testnet launch of its Layer 1 stablecoin-centric chain last month.
Ark Invest’s latest acquisition underscores its confidence in blockchain-based financial infrastructure. By increasing exposure to Circle during a market dip, Cathie Wood’s firm signals a strong belief that stablecoin adoption and tokenized financial systems will play a central role in the future of global finance.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.