Ark Invest Buys $18 Million in Circle Shares as Stock Drops 41% in One Month
Cathie Wood’s Ark Invest has shown strong confidence in Circle Internet Group. The firm purchased nearly $18 million worth of Circle shares while the USDC stablecoin issuer’s stock continued to decline.
Ark Invest Adds to Circle Position
On Wednesday, Ark Invest bought 287,609 shares of Circle across three of its flagship ETFs — ARKK, ARKW, and ARKF.
At the closing price of $61.95, the total investment amounted to approximately $17.8 million.
Circle Stock Falls Sharply
Circle’s stock (CRCL) closed down 1.1% on Wednesday. This came after an 18% plunge the previous day — its biggest single-day drop in months.
Over the past month, the stock has lost 41% of its value.
Reason Behind the Sell-Off
The sharp decline followed the launch of Open USD (OUSD), a new stablecoin project backed by over 140 companies, including Visa, Stripe, Mastercard, BlackRock, and Coinbase.
Investors worried about increased competition for Circle’s USDC stablecoin. Coinbase currently earns roughly 50% of USDC’s reserve income through its partnership with Circle.
Analysts See Limited Immediate Threat
Despite the heavy sell-off, many analysts believe the reaction was overstated.
- Bernstein maintained its Outperform rating on Circle with a $190 price target, stating it is unlikely Coinbase will move away from its partnership with Circle.
- William Blair analysts called the sell-off an overreaction, highlighting Circle’s strong first-mover advantage, deep liquidity, and robust payments infrastructure.
Ark Invest Also Buys Bullish Shares
In the same trading session, Ark Invest purchased 27,740 shares of crypto exchange Bullish, worth $699,880.
Bullish shares rose 7.7% on Wednesday, closing at $25.23.
What This Means
With the launch of Robinhood Chain, tokenized stocks, and enhanced trading tools, Robinhood is making DeFi more accessible to everyday users while expanding its global reach. The combination of traditional finance reliability and decentralized innovation positions the platform strongly in the evolving crypto landscape.
