ARK Invest Dumps Massive $146M in Circle Stock Amid Surge
Cathie Wood’s ARK Invest, known for its bold moves in disruptive technologies, has made a significant adjustment to its portfolio, offloading a substantial amount of Circle (CRCL) stock. This action comes just weeks after Circle’s public debut and amid a remarkable surge in its share price, catching the attention of investors interested in the intersection of traditional finance and the digital asset world, particularly concerning the growing importance of the stablecoin sector.
Cathie Wood’s Strategic Moves in Circle Stock
Cathie Wood and her team at ARK Invest have been actively trading shares of Circle, the company behind the USDC stablecoin. The latest reported move saw ARK selling a considerable portion of its holdings, signaling a strategic shift despite Circle’s strong market performance since becoming publicly traded. This follows a pattern of trimming positions in assets that have seen rapid appreciation, potentially to rebalance portfolios or capture profits.
ARK Invest’s Massive Sale Details
According to recent trade notifications, ARK Invest dumped another 609,175 Circle stock shares on Friday, valued at approximately $146.2 million based on that day’s closing price. This was not an isolated event; it marked the third sale by ARK in the past trading week alone. Over the week, ARK sold a total of 1.25 million CRCL shares, netting roughly $243 million. The sales were distributed across three of ARK’s prominent funds:
- ARK Innovation ETF (ARKK): Sold 490,549 shares
- ARK Next Generation Internet ETF (ARKW): Sold 75,018 shares
- ARK Fintech Innovation ETF (ARKF): Sold 43,608 shares
These transactions highlight the scale of ARK’s recent divestment from Circle.
Why the Circle Stock Price is Surging
The timing of ARK’s sales is notable because it occurred as Circle stock experienced a significant price surge. On Friday, the company’s shares jumped 20.4%, closing at $240.3. This put the stock’s price an astonishing 248% above its opening price of $69 on June 5, the day of its public debut on the New York Stock Exchange. The rapid appreciation likely presented ARK with an opportunity to realize substantial gains on their initial investment.
ARK Invest Remains a Key CRCL Holder
Despite the massive sales over the past week, ARK Invest still maintains a substantial position in Circle. The total shares sold represent nearly 29% of the 4.49 million CRCL shares ARK initially purchased at the time of Circle’s public launch. As of June 20, ARK remained the eighth largest holder of Circle shares, according to Bloomberg Terminal data. Their remaining stake was valued at $750.4 million. Interestingly, CRCL has become the top holding in the ARKW fund, representing 7.8% of its weight, underscoring its continued importance in that specific portfolio despite the recent trimming.
The Broader Context: Circle and Stablecoins
Circle is a key player in the digital asset ecosystem, primarily known for issuing USDC, one of the largest and most widely used stablecoins. The company’s public listing and subsequent stock performance are being watched closely by investors as a barometer for the broader market’s view on crypto-adjacent financial technology companies. The surge in Circle stock could reflect optimism about the future growth and regulatory clarity surrounding stablecoins.
Summary
Cathie Wood’s ARK Invest has strategically offloaded a significant portion of its Circle stock holdings, totaling around $243 million over the past week, including a $146 million dump on Friday. This divestment occurred amidst a dramatic surge in the CRCL share price following its public debut. Despite these large sales, ARK Invest retains a considerable stake in Circle, remaining one of its top shareholders and positioning CRCL as a major holding within certain ARK funds. The moves highlight ARK’s active management approach in response to market movements and the potential for substantial gains in rapidly appreciating assets like Circle stock.
