Circle is trending now after its impressive New York Stock Exchange debut, attracting major investment from Cathie Wood’s Ark Invest. On Thursday, Ark Invest purchased 4,486,560 Circle shares, valued at $373.4 million, across its Innovation (ARKK), Next Generation Internet (ARKW), and Fintech Innovation (ARKF) funds.
Circle’s shares jumped almost 200% on their very first day of trading as CRCL, hitting a high above $96 before settling at $83.23, that’s up 168.5% from the IPO price of $31. This big jump happened because the IPO was increased in size, thanks to way stronger investor interest than expected.
The IPO marks a major milestone for Circle, which had two earlier attempts to go public, once through a SPAC merger in 2021 and again via a confidential SEC filing earlier this year.
Circle’s main product, the USDC stablecoin, is the second biggest U.S. dollar-backed stablecoin out there, with $60.6 billion in circulation. It’s only behind Tether’s USDT, which has $154.5 billion. Circle’s successful IPO has put the company in the spotlight, especially as other crypto firms like Kraken and Animoca Brands are also getting ready to go public.
Jeremy Allaire, Circle’s co-founder and CEO, highlighted how important this moment is, saying, “Our transformation into being a public company is a significant and powerful milestone — the world is ready to start upgrading and moving to the internet financial system.” His words capture the bigger trend of the world shifting to digital finance and embracing blockchain technology.
Ark Invest’s strategy of buying shares in crypto-related companies right as they debut is well known. For example, Ark bought 750,000 shares of Coinbase when it went public in April 2021 and invested in eToro shares shortly after its IPO.
Ark tries to make sure no single stock takes up more than 10% of any fund, so they keep their investments balanced while still going after fast-growing companies like Circle.
In Ark’s latest reports, Circle is one of the biggest holdings across its funds, it’s 10th in ARKK with 4.4% ($251.8 million), 8th in ARKW with 4.4% ($77.2 million), and 7th in ARKF with 4.3% ($44.5 million).
To put this in perspective, Tesla leads ARKK with a 10.3% weighting valued at $594 million, while Ark’s Bitcoin ETF and Shopify hold significant spots in their respective funds.
To make room for this sizable Circle investment, Ark trimmed some of its positions. Notably, it sold $17.1 million worth of its own U.S. spot Bitcoin ETF shares from the Next Generation Internet fund, though the Bitcoin ETF remains the fund’s largest holding.
The Bitcoin ETF has faced recent outflows but has seen $2.4 billion in total inflows since its January 2024 launch and manages $4.7 billion in assets.
Ark has cut back on its holdings in Coinbase, Robinhood, and Block, signaling a clear shift toward fresh opportunities like Circle. This move highlights just how much Circle is gaining ground and why it’s becoming a hot name in crypto and fintech circles.
After Circle’s impressive stock market debut and Ark Invest’s heavy backing, it’s no wonder Circle is trending now as one of the most talked-about stocks out there.
Also Read: Why ‘Not to Buy’ Circle (CRCL) Stock Despite 168% Pop on Debut; Analyst Explains
