Cathie Wood's ARK Investment purchased 220,012 shares of Circle Internet Group on July 14 through three actively managed ETFs, according to a trade disclosure. Valued at approximately $13.9 million based on the New York Stock Exchange closing price of $63.22, the buys bring ARK's total disclosed July acquisitions to 725,517 shares, following earlier purchases on July 1 and July 9.
ARK doubles down on Circle despite steep decline
The purchases were split across ARK Innovation ETF (ARKK) with 159,517 shares, ARK Next Generation Internet ETF (ARKW) with 42,400 shares, and ARK Blockchain & Fintech Innovation ETF (ARKF) with 18,095 shares. Circle's stock has fallen about 22% year-to-date and roughly 76% from its post-IPO peak, yet ARK has steadily increased its holdings, signaling conviction in the USDC issuer.
Circle shares now represent 3.35% of ARKK, making it the ninth-largest holding with an estimated value of $218 million, and 4.37% of ARKF, ranking seventh at about $33 million. The buying spree suggests ARK views the recent selloff as a dip-buying opportunity, factoring in short-term supply-demand weakness.
Analysts turn cautious on fundamentals
Meanwhile, 10x Research released a report on July 14 stating it no longer considers Circle a buy below $80, revising its previous framework that called shares cheap under $80 and expensive above $125. The firm cited a "significant deterioration" in fundamentals, pointing to declining active addresses for the stablecoin USD Coin (USDC) as a sign of waning usage. However, it acknowledged a bullish scenario remains possible, leaving the current downturn as either a long-term buying opportunity or the start of a prolonged slump.