Ark Invest Buys $14M in Circle Shares, Reduces Robinhood Holdings
Cathie Wood’s Ark Invest increased its investment in Circle Internet Group on Tuesday by purchasing nearly $14 million worth of shares. At the same time, the investment firm expanded its position in Block Inc. while reducing its holdings in Robinhood Markets as part of its regular portfolio rebalancing strategy.
Ark Invest Increases Circle Investment
According to Ark Invest’s latest trading disclosure, the firm purchased 220,012 Circle shares across its ARK Innovation ETF (ARKK), ARK Next Generation Internet ETF (ARKW), and ARK Fintech Innovation ETF (ARKF). Based on Tuesday’s closing price of $63.22 per share, the total investment was valued at approximately $13.9 million.
Circle’s stock gained 0.35% during Tuesday’s trading session. However, the company remains down more than 24% over the past month following market concerns surrounding the launch of the Open USD stablecoin project.
Analysts Remain Divided on Circle
While several market analysts continue to see long-term potential in Circle, some have become more cautious. Mizuho recently downgraded the company’s rating from Neutral to Underperform. The firm also reduced its price target from $85 to $50, citing increased competition from the newly introduced Open USD stablecoin and its possible impact on Circle’s future growth.
Block Position Expanded
Ark Invest also strengthened its exposure to Block Inc., the blockchain-focused financial technology company co-founded by Jack Dorsey. Through the ARKW and ARKF funds, the firm purchased 19,029 Block shares, representing an investment of approximately $1.52 million.
Block’s stock performed well during Tuesday’s session, rising 1.61% to close at $79.99.
Robinhood Shares Trimmed
Alongside its new purchases, Ark Invest reduced its position in Robinhood Markets. The firm sold 27,742 Robinhood shares, valued at around $3.15 million. Robinhood shares finished Tuesday 3.27% higher, closing at $113.45.
Portfolio Rebalancing Strategy
Ark Invest regularly adjusts the holdings of its exchange-traded funds to maintain portfolio balance. The firm’s investment policy aims to ensure that no single stock accounts for more than 10% of an ETF’s total assets. As share prices change, Ark periodically buys or sells positions to keep each fund aligned with its investment strategy.
