Ark Invest buys $30 million worth of Circle shares amid post-earnings selloff
Quick Take
- Cathie Wood’s Ark Invest purchased $30.5 million worth of Circle shares across three of its ETFs on Wednesday.
- Circle’s stock fell 12.2% to close at $86.3 despite the company reporting strong earnings.
Cathie Wood’s Ark Invest purchased $30.5 million worth of Circle Internet Group shares across three of its exchange-traded funds on Wednesday, as the stock fell sharply despite the company reporting strong quarterly growth.
The ARK Innovation ETF (ARKK) bought 245,830 shares of Circle on Wednesday, while the ARK Next Generation Internet ETF (ARKW) added 70,613 Circle shares to its portfolio. The ARK Fintech innovation ETF (ARKF) also purchased 36,885 Circle shares.
Ark's move to buy more shares of Circle, the issuer of USDC stablecoin, came after Circle's stock plunged 12.2% on Wednesday to close at $86.3, according to The Block's price page .
Circle reported strong third-quarter results on Wednesday. It booked $740 million in total revenue, up 66% year-on-year, while its net income surged 202% to $214 million. The USDC circulation reached $73.7 billion at the end of the quarter, up 108% from a year earlier.
In an equity research report released Wednesday, analysts at investment bank William Blair said they encourage investors to build Circle positions on weakness with the stock down 12%. The analysts gave an "outperform" rating for the stock.
"We see Circle as a clear leader in a winner-take-most market as it builds out critical network infrastructure Circle Payments Network and Arc," the analysts said.
The William Blair analysts also outlined key risks, including regulatory uncertainty, industry fragmentation, intensifying competition, inadequate stablecoin infrastructure, corporate inertia, and potential pressure from lower interest rates.
Also on Wednesday, Circle said that it is "exploring the possibility" of a native token for its Arc blockchain as part of its push to expand onchain programmable finance. Last month, it launched the Arc public testnet for its Layer 1 stablecoin-centric chain.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Altcoin Price Targets Point to Six 2027 Levels
The AI frenzy withstands the "5% US Treasury yield"! Nasdaq hits new highs, strengthening the "80/20" pattern as Wall Street reassesses stock-bond allocation
The 30-year US Treasury yield briefly reached about 5.53%, hitting its highest level since 2004, while Brent crude remains above $100 per barrel. Risk assets have once again withstood the pressure, reflecting investors' continued belief that the commercialization of AI applications and corporate profit growth can to some extent offset the impact of rising financing costs and discount rates.
AI infrastructure hits a "wall"! Marvell: Copper interconnects and memory bottlenecks become key to the next stage of computing power expansion
The AI computing power competition is evolving into a system-level game encompassing interconnection and memory. According to Marvell executives, inference models have driven KV cache growth by about 10 times in nine months, and rack-level memory can no longer meet demand. Copper connections are approaching their limits, making optical interconnection and memory expansion core to computing power growth. Customization has become an industry trend, and Marvell is set to benefit from its expertise in analog SerDes, photonic fabric memory, and end-to-end customization.
Which Top RWA Tokens Have the Most Real-World Use in 2026?
Crypto prices
More
