Ark Invest buys $5.5 million worth of Circle shares as stock jumps 16% on Q1 earnings

Cathie Wood's Ark Invest acquired approximately $5.5 million worth of Circle shares across three of its ETFs on Monday, coinciding with a 16% surge in Circle's stock following its first-quarter earnings report. The purchases, totaling 41,904 shares, were made for the Innovation (ARKK), Next Generation Internet (ARKW), and Blockchain and Fintech Innovation (ARKF) ETFs. This marks Ark's first Circle investment since March 24, as the firm typically rebalances its holdings to prevent any single stock from exceeding 10% of a fund's portfolio. Circle is now a significant holding in Ark's ETFs, ranking as the sixth-largest in ARKK, fourth-largest in ARKW, and second-largest in ARKF. Circle's stock closed at $131.76, up 15.91% for the day, with year-to-date gains of 66.2%. The company reported $694 million in Q1 revenue, a 20% year-on-year increase, though net income fell 15% to $55 million. Onchain USDC transaction volume saw a substantial 263% year-on-year increase, reaching $21.5 trillion, and USDC in circulation grew 28% to $77 billion. Additionally, Circle announced it raised $222 million in a token presale for its new institutional blockchain, Arc.

(Source：The Block)