ARK Invest, led by Cathie Wood, is making strategic moves into the cryptocurrency space by increasing its stake in Circle, the issuer of USDC, amid a significant decline in the company’s stock price. After reducing its holdings earlier this year, ARK has resumed purchasing Circle shares, signaling confidence in the blockchain-based payments platform despite recent market volatility. This renewed interest highlights the ongoing institutional engagement with the evolving crypto and fintech sectors.
- ARK Invest purchased approximately $46 million worth of Circle (CRCL) shares over two days, marking a return to the crypto company after a period of divestment.
- Circle shares traded below $90, closing at $86 on Wednesday and $82.30 on Thursday, down significantly from their June high.
- Since its June NYSE debut, Circle’s stock soared to nearly $299 before plunging below $200 in July, with recent dips pushing it close to $82.
- ARKโs holdings in Circle now total around 3.1 million shares, valued at roughly $256 million based on current prices, with notable positions across its flagship ETFs.
- In addition to Circle, ARK continues to acquire shares in Bitcoin mining firms such as Bitmine Immersion Technologies, which notably holds Ether among its assets.
Circle shares: From soaring highs to recent lows
Circle shares made their public market debut on the NYSE on June 5, opening at $69 and closing at $83.2 on the first trading day. The stock experienced a meteoric rise, reaching nearly $299 by June 23, fueled by investor enthusiasm in the digital payments and stablecoin ecosystem.
However, the exuberance waned quickly as the stock faced a sharp correction. By July, CRCL dropped below $200 and has continued to slide amid broader market pressures and sector-specific concerns. On November 11, it broke below the $100 mark, sliding to around $81.40 in recent trading sessions.
Despite the recent decline, ARK’s strategic positioning has resulted in a holding of 3.1 million Circle shares, valued at approximately $256 million based on market prices. Notably, ARK’s largest fund, the ARK Innovation ETF (ARKK), holds the majority of these sharesโaround $165.7 millionโindicating a strong interest in the fintech and crypto-sector opportunities.
In addition to its Circle investments, ARK is actively expanding in the crypto mining sector by acquiring shares of Bitmine Immersion Technologies (BMNR), which also holds Ether among its assets. The firm purchased an additional 242,347 BMNR shares for nearly $8.9 million as the stock dipped below $37, demonstrating confidence in the Bitcoin and blockchain technology space despite market fluctuations.
This renewed activity underscores ARKโs bullish stance on blockchain innovation and the critical role of cryptocurrencies in shaping the future of financial services. As the crypto markets continue to evolve, institutional investors like ARK remain key players in determining the sectorโs long-term trajectory.
