TL;DR
- Ark Invest purchased $30.5 million in Circle shares across three ETFs, reaffirming its long-term bet on the company.
- Circle reported $740 million in revenue and $214 million in net income for the quarter, with USDC circulation reaching $73.7 billion.
- Circle is developing Arc, an EVM-compatible blockchain with its own native token and support from over 100 partners.
Ark Invest, led by Cathie Wood, acquired $30.5 million in Circle stock despite a 12.2% drop in the company’s share price. The purchase was distributed among three of its funds — ARKK, ARKW, and ARKF — signaling a long-term conviction in the company behind USDC and the broader digital payments ecosystem built around stablecoins.
Why Is Ark Betting on Circle?
Circle’s financials justify Ark’s confidence. The company reported $740 million in revenue for the third quarter, a 66% year-over-year increase, while net income surged 202% to $214 million. USDC’s supply reached $73.7 billion — more than double the previous year — driven by institutional and global demand for dollar-backed digital assets.
Despite the recent price correction, analysts at William Blair maintained an “outperform” rating and described Circle as a leader in a market where “the winner takes most.” They highlighted the company’s expanding infrastructure — including the Circle Payments Network and the upcoming Arc blockchain — as the core of its future growth. The firm also warned of ongoing regulatory pressure, intense competition, and the risk that lower interest rates could reduce revenue generated from stablecoin reserves.
Arc Enters Development
In parallel, Circle continues to develop Arc, a layer-1 blockchain compatible with the EVM and built for institutional applications. The network, currently in its testnet phase, involves partners such as Goldman Sachs, BlackRock, Visa, and more than 100 other companies. In its latest report, Circle confirmed that Arc will feature a native token for governance, incentives, and ecosystem sustainability, replacing its earlier plan to use USDC for transaction fees.
The token launch aligns with the growing success of appchains — purpose-built networks designed to optimize performance and customization. Circle expects this model to ease congestion on public blockchains and reinforce its role as a foundational player in on-chain financial infrastructure
