Ark Invest increased its exposure to Circle Internet (CRCL) on Wednesday, purchasing $30.5 million in shares as the USDC issuer’s stock experienced a sharp 12% pullback.
Cathie Wood’s investment firm accumulated 353,328 CRCL shares across three of its ETFs — ARK Innovation (ARKK), Next Generation Internet (ARKW) and Fintech Innovation (ARKF). The move aligns with Ark’s strategy of buying into weakness when it believes a company’s fundamentals remain intact.
CRCL closed at $86.30, its lowest level since early June, after recording its steepest daily drop since the 16% fall on June 27.
The sell-off followed Circle’s third-quarter earnings release. The company reported net income of $214 million, tripling its year-over-year profit, while earnings per share came in at 64 cents, topping analyst forecasts. However, renewed concerns about an expected U.S. interest-rate cut next month weighed on the stock, as lower rates reduce returns on Circle’s reserve assets that support the USDC stablecoin.
Despite the downturn, Ark’s sizeable buy suggests it sees the dip as an opportunity rather than a sign of weakening fundamentals.
