ARK Invest Returns to Circle Shares Following Price Dip

After a brief period of divestment earlier this year, Cathie Wood's investment firm ARK Invest has resumed purchasing shares of Circle (CRCL), the issuer of the USDC stablecoin. This move comes as the stock price has dipped below the $90 mark, potentially representing a buying opportunity for the firm. Over the past two trading days, ARK acquired a total of 542,269 Circle shares, investing approximately $46 million, according to the firm's daily trading disclosures reviewed by Cointelegraph. These purchases were distributed across two of ARK's exchange-traded funds (ETFs), namely the ARK Innovation ETF (ARKK) and the ARK Fintech Innovation ETF (ARKF), demonstrating the firm's confidence in Circle's long-term potential within the fintech sector.

Investment Allocation Across Funds

The acquisition on Wednesday amounted to $30.4 million, while the purchase on Thursday totaled $15.5 million. These acquisitions occurred amidst a decline in CRCL shares, which closed at $86 and $82.30, respectively. The renewed purchases mark ARK's first CRCL transactions since the firm offloaded approximately 1.7 million Circle shares across four sales in June at an average closing price of $200, generating $352 million.

Circle's Stock Volatility: From Peak to Trough

Circle shares debuted on the New York Stock Exchange (NYSE) on June 5, opening at $69 and closing at $83.2 on the first day of trading, according to NYSE data. The stock quickly surged to an all-time high of nearly $299 by June 23 but soon faced a sharp sell-off, falling below $200 in July. After losing $100 support on November 11, Circle shares continued dipping further, briefly dropping to $81.40.

ARK's Total Holdings in Circle

Following the purchase of half a billion CRCL shares, ARK held 3.1 million shares of Circle as of Friday morning, valued at around $256 million at the current market price. The holdings are distributed across three of ARK’s holding funds, including the ARK Innovation ETF (ARKK), ARK Next Generation internet ETF (ARKW), and ARK Fintech Innovation ETF (ARKF). ARKK, the largest ARK fund with net assets of $8.4 billion, holds the largest portion of CRCL shares, or $165.7 million.

Investment in Bitcoin Mining

In addition to resuming Circle buying, ARK has also been actively buying the stock of Bitmine Immersion Technologies (BMNR), a Bitcoin (BTC) mining company that has emerged as the largest public company holding Ether (ETH). On Thursday, the company purchased another 242,347 BMNR shares for about $8.9 million as the stock dropped below $37.

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