Cathie Wood’s ARK Invest Trims Circle Holdings, Realizing $51.7 Million as CRCL Stock Hits Record High

On June 16, Cathie Wood's Ark Invest, a prominent player in the investment landscape known for its focus on innovative technologies, sold 342,658 shares of Circle (CRCL), the issuer of the USDC stablecoin, realizing approximately $51.7 million in proceeds. Despite the sell-off, Circle's stock surged 13.1% to close at a record high of $151.06, marking a nearly fivefold increase from its IPO price of $31 per share.

Circle’s Blockbuster IPO and Market Performance

Circle Internet Group, the company behind the world’s second-largest dollar-backed stablecoin, USDC, with a circulating supply of $61.6 billion, made waves with its NYSE debut on June 5. The stock opened at $69, soared to an intraday high of $103.75, and closed at $81.69, reflecting a 168% gain on its first trading day. Since then, CRCL has maintained strong momentum, reaching an intraday peak of $165.60 on June 16 before settling at $151.06. This represents a nearly 434% increase from its IPO price, driven by robust investor confidence in stablecoins and their growing role in digital payments and blockchain ecosystems.

ARK Invest capitalized on this surge, having acquired 4.486 million CRCL shares worth $373.4 million on Circle’s debut day. The firm’s initial investment, spread across ARKK, ARKW, and ARKF, positioned Circle as a significant holding, with weightings of 4.4% ($251.8 million) in ARKK, 4.4% ($77.2 million) in ARKW, and 4.3% ($44.5 million) in ARKF. Following the recent sale, ARK retains approximately 4.15 million shares, valued at around $628 million based on the June 16 closing price, a substantial gain from its original investment.

Strategic Rebalancing Amid Portfolio Adjustments

The decision to trim its Circle position reflects ARK’s disciplined approach to portfolio management, which caps individual holdings at 10% to maintain diversification. The sale of 342,658 shares, representing about 7.6% of ARK’s initial CRCL position, aligns with this strategy, allowing the firm to lock in profits after the stock’s remarkable rally. While Ark Invest has reduced its position, the firm remains a significant shareholder in Circle, signaling continued confidence in the company's long-term prospects.

Notably, this move comes amid broader portfolio adjustments by ARK. On the same day, the firm purchased shares in NVIDIA Corp. and DoorDash Inc., while reducing stakes in other crypto-related companies like Coinbase Global (COIN) and Robinhood (HOOD).

Circle’s Role in the Stablecoin Ecosystem

Circle’s USDC, launched in 2018, has grown to become a cornerstone of the stablecoin market, trailing only Tether’s USDT in market share. With applications across decentralized finance (DeFi), cross-border payments, and blockchain-based financial platforms, USDC has benefited from increasing mainstream adoption. ARK Invest’s initial $373.4 million bet on Circle underscored its belief in stablecoins as a transformative force in finance.

The company’s IPO success, raising $1.1 billion, has drawn attention from other crypto firms, such as Kraken and Animoca Brands, which are reportedly eyeing their own public offerings. Despite earlier concerns about market volatility due to macroeconomic factors, Circle’s debut has set a high bar for the sector.