ARK Invest Buys Circle
ARK Invest Buys $13.9M in Circle Shares Despite Downgrade and Stock Slump
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Key Points
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Circle accounted for 4.37% of ARK Fintech Innovation ETF (ARKF) and 3.35% of the flagship ARK Innovation ETF (ARKK, highlighting Circle as a notable holding within ARK’s funds.
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Circle’s stock is down about 22% year-to-date and roughly 76% below its post-IPO peak, underscoring the share price pressure before ARK’s latest purchase.
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Mizuho downgraded Circle to Underperform and slashed its price target from $85 to $50, citing Open USD as a competitive threat to Circle’s revenue streams.
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ARK trimmed 27,742 Robinhood Markets shares, selling about $3.15 million worth of Robinhood to help fund Circle and Block purchases.
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ARK also bought 19,029 shares of Block Inc. across ARKW and ARKF, a transaction valued at about $1.52 million.
Cathie Wood's ARK Invest bought roughly 220,012 shares of Circle Internet Group on Tuesday, a purchase worth about $13.9 million at Circle's closing price of $63.22, according to CoinTelegraph. The move is part of a broader July buying spree that has now added 725,517 Circle shares to ARK's funds.
The purchases come as Circle's stock has fallen about 22% year-to-date and sits roughly 76% below its post-IPO peak, according to FX Street. ARK is buying into a clear sell-off — and doing so in size.
ARK Spreads $13.9M Across Three Circle ETF Positions
ARK spread Tuesday's Circle purchase across three of its exchange-traded funds, according to FX Street. Circle now makes up 4.37% of the ARK Fintech Innovation ETF (ARKF) and 3.35% of the flagship ARK Innovation ETF (ARKK). Those are meaningful weightings inside funds that hold dozens of names.
ARK has a standing rule: no single position can exceed 10% of a fund's portfolio. The Circle buys appear to stay well within that limit. The firm is adding aggressively, but not recklessly.
ARK Sold Robinhood Shares to Fund the Purchases
To pay for the Circle and Block buys, ARK trimmed 27,742 shares of Robinhood Markets, raising about $3.15 million, according to Crypto Briefing. ARK also picked up 19,029 shares of Block Inc. across its ARKW and ARKF funds, worth roughly $1.52 million.
The pattern is a familiar one for ARK. Wood's team regularly rotates out of one fintech name and into others. Robinhood was the source of funds; Circle and Block were the destinations.
Mizuho Downgrades Circle as Open USD Looms Large
Not everyone is buying the dip. Mizuho downgraded Circle to Underperform and cut its price target from $85 to $50, according to Value The Markets. The bank pointed to Open USD — a competing stablecoin project — as a direct threat to Circle's core revenue streams.
Circle's main product is USDC, a dollar-pegged stablecoin. Its revenue depends heavily on the interest earned from reserves backing USDC. If Open USD pulls users away, that revenue shrinks fast. Mizuho sees that risk as real and immediate.
ARK Bets on Circle's Long-Term Crypto Infrastructure Role
Despite the headwinds, ARK's July buying spree signals a long-term conviction call. ARK has added 725,517 Circle shares this month alone, according to CoinTelegraph. At current prices, that represents tens of millions of dollars in fresh exposure to the stablecoin sector.
Market reaction remains divided. Mizuho sees downside risk to $50. ARK, by contrast, is treating every dip as a buying opportunity. The gap between those two views reflects just how unsettled the stablecoin competition story still is.
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