Ark Invest buys $30 million worth of Circle shares amid post-earnings selloff
Ark Invest purchased $30.5 million in Circle shares across three ETFs following a sharp stock drop despite strong quarterly earnings.Summary
Cathie Wood’s Ark Invest acquired $30.5 million worth of Circle Internet Group shares across its ARK Innovation ETF (ARKK), ARK Next Generation Internet ETF (ARKW), and ARK Fintech Innovation ETF (ARKF) on Wednesday. This buying spree occurred as Circle's stock price fell 12.2% to close at $86.3, despite the company reporting strong third-quarter results, including $740 million in revenue (up 66% YoY) and $214 million in net income (up 202% YoY), with USDC circulation reaching $73.7 billion.
Investment bank William Blair analysts encouraged investors to buy Circle shares on the weakness, maintaining an "outperform" rating and viewing Circle as a leader in its market segment. They also noted risks such as regulatory uncertainty and competition. Concurrently, Circle announced it is exploring a native token for its Arc blockchain as part of its expansion into onchain programmable finance.
(Source：The Block)