Circle’s stock has skyrocketed over 860% since its IPO, but Ark Invest has offloaded $205 million worth of shares, raising questions about the sustainability of its rapid ascent.
On June 23, 2025, Circle Internet Group (CRCL), the issuer of USDC, saw its stock price briefly surge past $298 before closing at $276—marking a meteoric 860% gain from its June 5 IPO at $31. This pushed Circle’s market cap to $614 billion, briefly surpassing USDC’s circulating market cap of $612 billion. Yet, amid the rally, Ark Invest and company insiders sold off over 7.7 million shares combined since June 16, fueling growing skepticism about the stock’s sustainability.
The milestone reflects Circle’s robust growth since its public debut on June 5, when the stock launched at $31 per share and soared 168% on its first day to close at $83.23. By June 18, the price had climbed to approximately $190, marking a staggering 33% single-day jump, and from the IPO price of $31 to nearly $300, the strong rally has surged beyond 860%.
Strategic Sell-Off by Ark Invest
Based on the post record from Ark Invest Daily, Ark Invest, led by Cathie Wood, executed a significant reduction in its Circle holdings on June 23, offloading 415,844 shares valued at approximately $109.5 million based on the day’s closing price of $263.45. The sell-off included 306,921 shares from the ARKK fund, aligning with the 1.2447% drop in its ETF total as detailed in the transaction update dated June 23, alongside 72,302 shares from ARKW and 36,621 shares from ARKF.
This move follows a series of earlier sales, with Ark dumping 300,108 shares worth $44.7 million on June 18—the same day news of the “GENIUS Act” emerged—and an additional 642,766 shares between June 16 and 17, totaling nearly $96 million in a week. Meanwhile, Circle’s executives and insiders, including the CEO and CFO, have collectively sold over 6.68 million shares since the IPO, capitalizing on the stock’s meteoric rise.
Ark Invest has now offloaded a total of 1,058,610 shares since June 16, 2025, with an approximate total value of $205.5 million based on varying closing prices. The details of these transactions are summarized below:
Market Dynamics and Future Prospects
The recent profit-taking by Ark Invest, which has offloaded 1,058,610 shares worth approximately $205.5 million since June 16, 2025, alongside insiders’ sale of over 6.68 million shares since the IPO, has ignited debates about the sustainability of Circle’s momentum.
The wave of profit-taking has sparked debate over whether Circle’s valuation has outrun its fundamentals. On June 20, Airwallex CEO Jack Zhang bluntly posted on X: “Time to short Circle?” — a sentiment echoed by analysts warning that meteoric growth may be difficult to sustain without clear revenue drivers.
Despite this skepticism, the company’s growth remains closely tied to USDC’s widespread adoption in the crypto ecosystem, further strengthened by the launch of Fiserv’s FIUSD stablecoin on Solana in mid-June 2025. This initiative, involving partnerships with Paxos, Circle, and PayPal, marks a significant step into Web3, boosting demand for USDC and contributing to the recent stock price surge to $276 by June 23.
Looking forward, Circle’s leadership in the stablecoin market appears set to solidify, supported by the “GENIUS Act”’s potential to enhance stablecoin infrastructure. However, the substantial sell-offs could foreshadow potential market corrections. The trajectory of this legislation and Ark Invest’s future investment strategies will likely influence market responses in the coming weeks.
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