TL;DR
- Ark Invest put $373.4 million into Circle shares after its stock market debut, which closed with a nearly 200% surge on its first day.
- To finance the purchase, Ark sold positions in Coinbase, Robinhood, Block, and its own Bitcoin ETF, although ARKB remains its largest holding.
- Circle, the issuer of USDC with $60.6 billion in circulation, completed its IPO despite market volatility driven by Trump’s tariff policies.
Ark Invest made a $373.4 million purchase of Circle shares during its first trading day on the New York Stock Exchange.
The transaction included 4,486,560 shares split across its ARKK, ARKW, and ARKF funds, marking a bold move on the USDC issuer following the company’s successful market debut. Circle, which had previously attempted to go public twice, saw its share price jump nearly 200% on its first day, closing at $83.23 per share — well above the $31 set in its initial public offering.
How Was the Operation Funded?
To finance the deal, Ark Invest trimmed positions in several crypto and tech-related assets. It sold $39.4 million in Coinbase shares, $18.5 million in Robinhood, and $10.4 million in Block, along with $17.1 million from its own Bitcoin ETF, ARKB, within the Next Generation Internet fund. Despite the sell-offs, ARKB remains the fund’s largest position, with $4.7 billion in assets under management and $2.4 billion in net inflows since its January 2024 launch.
Circle, which issues the second-largest stablecoin on the market, manages a USDC supply exceeding $60.6 billion. Only Tether surpasses that, with $154.5 billion in circulation. The company, which filed its prospectus with the SEC in April, successfully completed its IPO despite market turbulence caused by President Trump’s tariff-driven economic policy.
Ark Invest Reshuffles Holdings: Circle Takes a 4.4% Share
Ark Invest enforces a diversification policy that prevents any single position from exceeding 10% of a fund’s total value. The latest adjustments reflect a portfolio rebalance to accommodate Circle’s entry without overexposing the portfolio. The new asset carries an initial weighting between 4.3% and 4.4%.
This isn’t the first time Ark Invest has made an aggressive move on crypto companies at their debut. In 2021, it bought 750,000 Coinbase shares and, in 2024, picked up 140,000 eToro shares following its IPO. Circle’s performance could influence upcoming listings from companies like Kraken and Animoca Brands, both closely watching the outcome of this IPO.
