ARK Invest Buys Another 220,000 Circle Shares Despite Prolonged Slump

Cathie Wood's ARK Invest continued to add to its stake in Circle Internet Group, the company behind the USDC stablecoin, even as the stock remains under pressure. ARK's daily trading disclosures reviewed by Cointelegraph show the firm purchased another 220,000 Circle shares on Tuesday across three actively managed exchange-traded funds. Based on Circle's New York Stock Exchange close of $63.22, the latest buy was worth about $13.9 million. Key points - ARK bought 220,000 Circle shares Tuesday, valued at roughly $13.9 million at the NYSE close. - Including disclosed July purchases, ARK has accumulated 725,517 Circle shares, extending a pattern of steady additions despite weak share performance. - Circle made up about 4.37% of the ARK Fintech Innovation ETF (ARKF) as of Wednesday and about 3.35% of ARK Innovation ETF (ARKK). - 10x Research said it no longer rates Circle a buy after the stock dropped back below $80, citing weakening fundamentals and slowing USDC activity. July buying builds to 725,517 shares Tuesday's trade brought ARK's disclosed July purchases to 725,517 Circle shares. Earlier disclosures show buys of 287,609 shares on July 1 and 217,896 shares on July 9. The continued accumulation underscores ARK's conviction in Circle's role in regulated stablecoin infrastructure, an area where sentiment has been volatile. Even after Circle fell sharply from its IPO-era high, ARK has kept building its position. As of Wednesday, Circle was the seventh-largest holding in ARK Fintech Innovation ETF (ARKF), representing 4.37% of the fund. The stake was valued at about $33 million based on the latest holdings data published on ARK's website. Circle also remained a sizable position in ARK Innovation ETF (ARKK). It accounted for 3.35% of the flagship fund, ranking ninth, with an estimated value of about $218 million, according to ARK's holdings data. Shares slide as ARK keeps adding While ARK's purchases have been steady, Circle shares have struggled. The stock was down about 22% year to date and roughly 76% below its post-IPO peak. ARK's repeated buys suggest the firm sees long-term value tied to USDC's standing in the stablecoin market, even as many investors have turned more cautious. Still, equity performance can diverge from broader ecosystem trends, and stablecoin issuers face shifting variables including regulation, competition, and onchain and payments activity. Analysts flag weaker fundamentals and slower USDC usage ARK's latest purchase came as some analysts reassessed Circle's outlook. Digital asset research platform 10x Research said in a Tuesday report that it no longer considers Circle a buy after the stock fell back below $80. The firm said it previously viewed Circle as attractive below that threshold but now believes fundamentals have "meaningfully deteriorated." It also highlighted slower USDC activity, including a drop in active addresses. Market data offers additional context. CoinGecko data cited in the report showed USDC's market capitalization down roughly 3% year to date to about $73 billion at the time of publication, while still about 17% higher than a year earlier. The market is larger than it was a year ago, but recent momentum has softened. 10x Research said the latest decline in Circle's share price could be read two ways: a long-term entry point or an early signal of a more extended downturn. The split reflects the broader challenge of valuing stablecoin issuers' equities, where investors must distinguish temporary drawdowns from longer-term shifts in transaction demand, regulatory clarity, and competitive dynamics. What investors are watching next Attention now turns to whether Circle can address the pressures cited by analysts, particularly USDC activity levels, and whether ARK's buying is echoed by broader capital flows into the stock. With sentiment swinging sharply, upcoming disclosures and onchain usage trends around USDC are likely to carry heightened weight. This article was originally published as ARK Invest Adds 220K More Circle Shares After Recent Sell-Off on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.