Ark Invest, led by Cathie Wood, made a major investment in Circle on the day it went public, purchasing 4,486,560 shares worth $373.4 million.
Ark Invest Purchases $373 Million in Circle Shares
The acquisitions were made through Ark's Innovation (ARKK), Next Generation Internet (ARKW) and Fintech Innovation (ARKF) funds.
The purchase came the same day Circle began trading on the New York Stock Exchange (NYSE) under the symbol “CRCL.” The company’s shares rose 168.5% on its first day of trading, closing at $83.23.
The intraday high was $96. The shares were priced well above the company’s upwardly revised IPO price of $31 due to strong demand.
Circle’s IPO Process and Its Impact on the Crypto Industry
Circle has attempted to go public twice before, first in 2021 through a SPAC merger and then in 2024 through a confidential S-1 filing. The company filed its latest filing with the SEC in April of this year, citing concerns that the IPO could be hindered by market uncertainty stemming from President Trump’s tariffs. However, the IPO was a success.
Circle CEO Jeremy Allaire commented on the IPO:
“Our becoming a public company is a powerful and important milestone in the transition to an internet-based financial system.”
Circle's USDC is the world's second-largest dollar-backed stablecoin after Tether's USDT, with a supply of $60.6 billion.
Ark Invest has reduced some of its existing positions to fund its new investment. On Thursday, Ark sold $17.1 million worth of its own Bitcoin ETF (ARKB), which remains the fund’s largest holding, the company said.
In addition, the company;
- 161,304 Coinbase shares ($39.4 million),
- 255,327 shares of Robinhood stock ($18.5 million),
- Jack Dorsey's Block sold 163,304 shares ($10.4 million) of its company.
Ark Invest’s investment philosophy calls for no individual asset to weigh more than 10% of the fund’s portfolio. This strategy aims to maintain diversification within the fund and allows for rebalancing if Circle shares increase in value.
As of now, Circle stocks are included in Ark funds as follows:
- With a 4.4% weight in the ARKK fund ($251.8 million),
- 4.4% ($77.2 million) in ARKW fund,
- 4.3% ($44.5 million) in ARKF funds.
For comparison, the highest weighted holdings in the same funds include Tesla (10.3%), Ark Bitcoin ETF (8.2%), and Shopify (9%).
*This is not investment advice.
