ARK Invest (ARK Invest) bought Circle (CRCL) shares on July 13 amid a sharp drop in Circle stock. ARKK and ARKF, together, purchased about 217,896 shares of Circle, adding roughly $13.7 million. ARK Invest also sold 85,319 shares of Robinhood (HOOD) at the same time, raising about $9.8 million.
ARK Invest Adds to Circle Holdings as ARKK and ARKF Coordinate Their Bet
According to transaction records disclosed by ARK Invest, this add-on to Circle shares was executed jointly by two flagship ETFs—ARKK (ARK Innovation ETF) and ARKF (ARK Fintech Innovation ETF). The combined purchase totaled about 217,896 shares; based on Thursday’s closing price of $63.01, the additional investment was approximately $13.7 million. This is ARK Invest’s buy-the-dip move targeting Circle’s near-term drop of 20.2%, and it also reflects Cathie Wood’s continued bullish stance on Circle and the stablecoin sector over the long term.
OUSD’s Competitive Threat: A 140-Company Coalition Pressures Circle’s Stock Price Lower
According to reports, Circle shares have fallen 20.2% over the past month, with market concerns attributed to competition driven by Open USD (OUSD). OUSD is a dollar stablecoin supported by more than 140 companies, backed by:
Visa, Mastercard: major global payment networks
Stripe: a key payments infrastructure provider
BlackRock: the world’s largest asset manager
Coinbase: a leading crypto exchange
The lineup has sparked worries in the market that USDC’s existing market share could be carved up; however, Bernstein analysts reiterated their “Outperform” rating for Circle and maintained a $190 price target, saying Circle has long-term structural advantages.
Frequently Asked Questions
Why did ARK Invest buy the dip in Circle shares as the stock fell?
According to reports, Circle (CRCL) shares have declined 20.2% cumulatively over the past month, mainly due to concerns that competition from Open USD (OUSD) could cause USDC market share to be split. ARK Invest chose to add to its position at this time, reflecting its counter-trend investment style—buying about 217,896 shares for $13.7 million. Bernstein analysts also kept their $190 target price for Circle, providing institutional backing for ARK Invest’s bullish view.
Why did ARK Invest also sell Robinhood stock?
According to reports, ARK Invest sold 85,319 shares of Robinhood (HOOD), raising about $9.8 million. Such selling is typically part of routine ETF portfolio rebalancing: when a single constituent stock’s rising price causes its weight to exceed 10% of fund assets, ARK Invest proactively adjusts the position weight. Robinhood rose 1.39% to $115.11 on Thursday; the strong performance may have been a factor triggering the trimming.
What are Bernstein’s rating and price target for Circle?
According to reports, Bernstein analysts reaffirmed an “Outperform” rating for Circle and kept the $190 price target unchanged. Compared with Thursday’s closing price of $63.01, the implied upside potential embedded in the target is about 200%. The above reflects the analysts’ personal assessment and does not constitute investment advice; the real-time share price is subject to market quotes.
