Simply put
- Ark Invest purchased about $30 million in stock from stablecoin issuer Circle on Wednesday.
- The firm now owns close to 3 million CRCL shares, valued at over $255 million.
- CRCL stock has dropped nearly 38% in the last month, reaching lows not seen since its trading debut.
Cathie Wood’s investment firm, Ark Invest, announced that it has increased its stake in stablecoin issuer Circle (CRCL) by over $30 million. This move adds a total of 353,328 CRCL shares to its three actively managed ETFs, bringing its total holdings to nearly 3 million shares worth around $255 million.
The timing of this acquisition comes as Circle’s stock price has significantly declined, falling more than 20% in just the past week. Currently, CRCL is trading at approximately $86.21, similar to its position shortly after the market opened on Thursday.
Over the past month, the stock’s decline has been even steeper, plummeting 37% and returning to levels not seen since its initial trading day after a successful IPO.
Despite the downturn, Circle reported better-than-expected earnings in the third quarter, with a revenue of $740 million, which is a 66% increase from the previous year. Last month, they also revealed plans for a new blockchain network focused on stablecoins and hinted at the launch of a native token as part of their Q3 report.
Wood’s latest investment in CRCL reflects the strategy she implemented last week when she acquired shares in Bitmine Immersion Technologies (BMNR), another stock that has faced a significant drop, about 30% over the past month. Ark added roughly $9 million in Bitmine shares, increasing its exposure there to about $260 million.
Ark Invest continues to hold positions in various crypto-related companies, including Robinhood and Coinbase, and has its own Bitcoin ETF. Wood notably forecasted that Bitcoin would reach around $1.5 million per coin by 2030, though this week she adjusted that prediction to $1.2 million. This shift may have come as stablecoin usage rapidly grows.
Bitcoin has experienced a slight drop of about 0.6% in the last 24 hours, trading now at $101,128. Various market predictors suggest that Bitcoin could rise to $115,000 before possibly falling back to $85,000.
