Cathie Wood’s Ark Invest made a bold move this week, purchasing roughly $30.5 million worth of Circle Internet Group shares across three of its exchange-traded funds (ETFs). The buy came immediately after Circle’s stock tumbled more than 12% on Wednesday — a drop that followed an otherwise strong quarterly earnings report.
According to Ark’s daily trade disclosures, the ARK Innovation ETF (ARKK) acquired 245,830 shares of Circle, while the ARK Next Generation Internet ETF (ARKW) added 70,613 shares. The ARK Fintech Innovation ETF (ARKF) also picked up 36,885 shares. Together, these purchases reflect Ark’s continued confidence in Circle’s long-term prospects, even amid market volatility.
Strong Results, Weak Market Reaction
Circle — best known as the issuer of the USDC stablecoin — reported a 66% year-over-year jump in total revenue to $740 million in the third quarter. The company’s net income surged 202% to $214 million, while the circulation of USDC reached $73.7 billion, more than doubling from the same period last year.
Despite these impressive figures, Circle’s stock fell 12.2% to close at $86.30, according to price data. Analysts attribute the selloff to short-term profit-taking and market caution following a period of broader fintech volatility.
Analysts Remain Bullish
In an equity research note released Wednesday, analysts at William Blair maintained an “outperform” rating on Circle, advising investors to take advantage of the dip.
“We see Circle as a clear leader in a winner-take-most market as it builds out critical network infrastructure, including Circle Payments Network and Arc,” the firm wrote.
However, the analysts also warned of several ongoing risks — including regulatory uncertainty, increasing competition, industry fragmentation, and the potential impact of lower interest rates on stablecoin yields and demand.
Circle’s Push Into Onchain Finance
Circle also revealed that it is exploring a native token for its Arc blockchain, part of a broader initiative to expand programmable onchain finance. The company launched the Arc public testnet last month, positioning the new Layer 1 network as a key piece of infrastructure for stablecoin-driven financial applications.
A Calculated Bet
Ark Invest’s latest buy underscores Cathie Wood’s well-known strategy of buying the dip on companies positioned at the intersection of finance and innovation. With Circle continuing to post strong fundamentals and deepen its blockchain footprint, Ark’s move suggests a belief that the stock’s current weakness could offer long-term upside.
