Key facts
- ARK Invest purchased $13.9 million worth of Circle shares on Tuesday.
- ARK Invest has acquired a total of 725,517 Circle shares in July.
- Circle shares are down approximately 22% year-to-date.
- Analysts at 10x Research no longer consider Circle a buy due to deteriorating fundamentals.
- USDC's market capitalization has declined roughly 3% year-to-date.
- Circle is a significant holding in ARK Invest's Fintech Innovation ETF and ARK Innovation ETF.
Cathie Wood's ARK Invest has continued to increase its stake in Circle, the issuer of the USDC stablecoin, by purchasing approximately $13.9 million worth of shares on Tuesday. This latest acquisition adds to ARK's substantial July buying spree of Circle stock, bringing the total to over 725,000 shares despite a prolonged decline in the company's stock price. Circle shares are down about 22% year-to-date and significantly below their post-IPO peak.
The investment firm's conviction in Circle comes as analysts express growing concerns about the company's fundamentals. Digital asset research platform 10x Research stated it no longer views Circle as a buy, citing deteriorating fundamentals and a decline in USDC activity, including fewer active addresses. USDC's market capitalization has also seen a slight year-to-date decline, though it remains higher than a year ago.
Despite these headwinds, Circle remains a notable holding within ARK Invest's portfolio. It constitutes 4.37% of the ARK Fintech Innovation ETF (ARKF) and 3.35% of the flagship ARK Innovation ETF (ARKK). The firm's consistent buying suggests a belief in Circle's long-term prospects, even as market sentiment wavers.