Cathie Wood’s ARK Invest increased its exposure to Circle Internet Group after the stablecoin company’s share price suffered a sharp decline.
The investment firm purchased 287,609 Circle shares across three of its exchange-traded funds. Based on Wednesday’s closing price of $61.95, the transaction was worth approximately $17.82 million.
ARK Invest Buys the Circle Stock Dip
The largest Circle stock purchase came through the ARK Innovation ETF, also known as ARKK. The fund acquired 210,343 CRCL shares, according to ARK Invest’s daily trading disclosure.
Meanwhile, the ARK Fintech Innovation ETF, or ARKF, purchased 23,420 shares.
The ARK Next Generation Internet ETF, known as ARKW, added another 53,846 Circle shares to its portfolio.
These purchases show that Cathie Wood remains confident in Circle despite the recent pressure on its stock price.
Circle Stock Falls Sharply
Circle shares have fallen around 15% over two trading sessions.
CRCL stock closed Wednesday at $61.95, representing a daily decline of 1.09%. This followed a much larger fall on Tuesday, when the stock dropped 14.15% and finished the session at $62.63.
Over the previous month, Circle’s share price declined by more than 38%.
The sharp pullback created an opportunity for ARK Invest to increase its position at a lower valuation.
Russell Index Removal Pressures CRCL Shares
Part of the selling pressure followed Circle’s removal from several Russell growth indexes during the annual index reconstitution on June 26.
Circle was removed from the Russell 1000 Growth Index, Russell 3000 Growth Index and Russell Midcap Growth Index.
When a company leaves a major index, funds that track that index may need to sell their shares. Therefore, the changes likely contributed to increased selling activity in Circle stock.
Circle Faces New Stablecoin Competition
Circle’s USDC stablecoin is also facing growing competition following the launch of Open USD, or OUSD.
The new stablecoin project reportedly has support from major financial and cryptocurrency companies, including BlackRock, Coinbase, Ripple, Mastercard and Visa.
The entrance of another well-backed stablecoin could increase pressure on USDC’s market position. As a result, investors may be assessing whether Circle can maintain its influence within the rapidly developing stablecoin sector.
Standard Chartered Partnership Supports Circle
Despite these challenges, Circle is working to expand USDC’s institutional use.
The company recently announced a partnership with Standard Chartered. The agreement will allow institutional clients to mint and redeem USDC through the banking group.
Following this development, Circle shares recovered during Thursday’s premarket trading session. CRCL stock rose approximately 4.25% to $64.58.
ARK Invest Adjusts Other Holdings
Alongside its Circle purchase, ARK Invest made several additional portfolio changes.
The ARK Innovation ETF increased its positions in companies including Recursion Pharmaceuticals, SoFi Technologies, Snowflake, Bullish and Rocket Lab.
At the same time, the fund reduced its exposure to Twist Bioscience, Absci, Veracyte, Alibaba and Roku.
ARK’s other funds also adjusted positions in companies such as Bullish, Alibaba, Roku and Strata Critical Medical.
Cathie Wood Continues Betting on Crypto Stocks
Cathie Wood has continued building positions in cryptocurrency-related businesses.
ARK Invest has regularly purchased shares in companies such as Coinbase, Robinhood, Bullish and Circle. These investments suggest that the firm remains optimistic about the long-term growth of cryptocurrency platforms and digital-asset infrastructure.
ARK Invest has also expanded its exposure to private technology companies, including a recent reported investment of $32.5 million in SpaceX.
