Ark Invest Buys $30.5 Million in Circle Shares as Stock Plunges Despite Strong Earnings

Cathie Wood's Ark Invest significantly increased its stake in Circle Internet Group, the issuer of the USDC stablecoin, purchasing $30.5 million worth of shares across three of its exchange-traded funds (ETFs) on Wednesday.

Ark's major investment—spread across the ARK Innovation ETF (ARKK), ARK Next Generation Internet ETF (ARKW), and ARK Fintech Innovation ETF (ARKF)—occurred after Circle's stock closed down sharply by 12.2% at $86.3.

Strong Quarterly Performance Ignored by Market:

The stock plunge happened despite Circle reporting exceptionally strong third-quarter results:

• Total Revenue: $740 million (up 66% year-on-year).
• Net Income: $214 million (surged 202% year-on-year).
• USDC Circulation: Reached $73.7 billion (up 108% from a year earlier).

Analyst Endorsement and Future Plans:

Investment bank William Blair reinforced confidence in the company, giving the stock an "outperform" rating and advising investors to buy on the weakness. Analysts praised Circle as a "clear leader in a winner-take-most market" focused on building out critical infrastructure like the Circle Payments Network and Arc.

However, they noted key risks, including regulatory uncertainty and intensifying competition.

Additionally, Circle announced it is "exploring the possibility" of launching a native token for its new Layer 1 stablecoin-centric chain, Arc, as it pushes to expand programmable finance.

November 2025, Cryptoniteuae