Ark Invest buys $16 million in Circle as stock tumbles 20% on negative catalysts

Ark Invest, led by Cathie Wood, strategically bought 161,513 shares of Circle Internet Group, totaling $16.34 million, as Circle’s stock price fell 20% on Tuesday. This decline was spurred by the potential for restrictive regulations outlined in the draft U.S. Clarity Act, which could ban yield payments on stablecoins, and reports of Circle freezing USDC balances in 16 hot wallets linked to a U.S. civil case. Industry observers noted this highlights centralization risks with USDC. Additionally, Tether’s announcement of a full financial audit by a Big Four firm could challenge Circle’s position as a transparent alternative. Despite the drop, Circle shares rebounded slightly in after-hours trading, and Ark also sold $1.53 million in Bullish shares as part of its ongoing portfolio rebalancing, maintaining diversification within its ETFs.

(Source：The Block)