ARK Invest Buys $30M Circle Shares, Bets on USDC Growth
ARK Invest led by Cathie Wood purchased 353,328 shares of stablecoin issuer Circle—equivalent to about $30.5 million—across its ARKK, ARKW and ARKF ETFs after Circle stock fell 12.2% post-Q3 earnings. The move follows a strong quarterly report: revenue surged 66% to $740 million, net income rose 202% to $214 million, on-chain USDC circulation climbed 108% to $73.7 billion and transaction volume reached $9.6 trillion. William Blair upgraded Circle to outperform, citing its expanding payment network and partnerships despite regulatory and rate-cut risks, while Circle’s CFO emphasised resilience in a low-yield environment. Concurrently, Ark trimmed its Bitcoin (BTC) holdings amid rising stablecoin competition and boosted its Ethereum (ETH) exposure by acquiring 240,507 shares of blockchain services firm Bitmine Immersion. This reallocation underscores growing institutional confidence in USDC, blockchain payment infrastructure and Ethereum-focused services, reflecting Ark’s focus on disruptive technology assets.
Bullish
ARK Invest’s significant purchase of Circle shares underscores institutional confidence in the stablecoin issuer and its USDC token, suggesting increased demand and adoption which could boost on-chain activity and liquidity. The timing—post-Q3 earnings dip and strong financial results—may drive positive market sentiment and reinforce USDC’s role in DeFi and payments, supporting short-term stability around its $1 peg. Over the long term, sustained backing from leading funds like Ark Invest can encourage further integration of USDC across blockchain platforms, maintaining its market share and usage.