ARK Invest, led by Cathie Wood, deepened its commitment to the stablecoin sector on Tuesday, snapping up roughly $13.9 million worth of Circle Internet Group shares even as the stock languishes near recent lows. The firm also initiated a fresh position in Jack Dorsey’s Block Inc. while trimming its stake in Robinhood Markets, according to the latest daily trading disclosure.
The flagship purchase involved 220,012 Circle shares distributed across three of ARK’s actively managed exchange-traded funds: the ARK Innovation ETF (ARKK), the ARK Next Generation Internet ETF (ARKW), and the ARK Fintech Innovation ETF (ARKF). Based on Circle’s Tuesday closing price of $63.22, the transaction totaled approximately $13.9 million. Circle inched up 0.35% on the day, a minor reprieve in a month that has seen the stock tumble 24.17%.
ARK simultaneously acquired 19,029 shares of Block Inc., valued at roughly $1.52 million based on a closing price of $79.99, through ARKW and ARKF. Block finished the session up 1.61%. On the selling side, the investment manager offloaded 27,742 Robinhood shares, cashing out approximately $3.15 million as the brokerage stock rallied 3.27% to close at $113.45.
Doubling Down on Stablecoin Infrastructure
The aggressive Circle buy is the latest in a series of acquisitions that underscore ARK’s conviction in the company behind USDC, the world’s second-largest stablecoin with roughly $73 billion in circulation. Since Circle’s New York Stock Exchange debut in 2025, ARK has consistently expanded its position, with cumulative disclosed purchases now exceeding $53 million over the past two months.
The buying spree has accelerated even as Circle faces mounting headwinds. The stock’s sharp July decline was triggered by the launch of Open USD, a competing stablecoin initiative backed by more than 140 companies including Visa, Stripe, Mastercard, BlackRock, and Coinbase. The competitive threat prompted Mizuho to downgrade Circle from Neutral to Underperform, slashing its price target from $85 to $50. The brokerage warned that Open USD could erode Circle’s revenue streams over time.
However, Wall Street remains divided. Bernstein has maintained an Outperform rating on Circle with a $190 price target, suggesting the competitive fears may be overblown. ARK’s continued accumulation signals the firm views the recent selloff as an attractive entry point rather than a structural threat.
Block Addition and Robinhood Reduction
The Block purchase adds another digital payments and blockchain-focused name to ARK’s portfolio. Block, co-founded by Jack Dorsey, has been expanding its crypto services and infrastructure offerings, aligning with ARK’s thesis on the convergence of finance and blockchain technology.
The Robinhood sale, meanwhile, appears to reflect portfolio mechanics rather than a bearish outlook. ARK maintains a strict internal rule limiting any single holding to no more than 10% of a fund’s total assets. When a position appreciates significantly—as Robinhood did with its 3.27% surge—the firm routinely trims exposure to restore target weightings. This disciplined rebalancing approach is a core component of ARK’s ETF management philosophy.
A Pattern of Buying Weakness
Tuesday’s trades extend a well-established pattern for ARK. On June 26, the firm added shares of Circle, Coinbase, Bullish, and Robinhood after all four stocks closed lower. Earlier disclosures revealed a roughly $18.4 million Coinbase purchase during a month-long slide, more than $4.4 million in Bullish stock during a multi-session decline, and approximately $32.5 million in SpaceX following a drop of more than 16% from its post-listing peak.
This systematic approach to accumulating positions during market pullbacks reflects ARK’s long-term, high-conviction investment philosophy. The firm’s daily trading disclosures do not explain the rationale behind individual transactions, but the pattern suggests a deliberate strategy of averaging into weakness rather than making one-off tactical bets.
Broader Crypto Conviction
The Circle accumulation aligns with ARK CEO Cathie Wood’s publicly stated bullish outlook on digital assets. Crypto analyst Lark Davis recently highlighted Wood’s view that Bitcoin has already bottomed and could resume its long-term uptrend, with a five-year price target ranging from $750,000 to $1.25 million. While those comments focused on Bitcoin, ARK’s sustained buying of Circle reflects a broader conviction in the long-term expansion of digital asset infrastructure and blockchain-based financial services.
Circle generates revenue primarily from interest on reserves backing USDC, which are invested in U.S. Treasuries and cash equivalents. This business model benefits from higher interest rates, though it also faces structural risks if rates decline. Tether’s USDT remains the dominant stablecoin by market share, adding another layer of competitive pressure.
What Investors Should Watch
With ARK deploying over $37 million into Circle in roughly two months, the pace of future purchases will be a key signal. A slowdown could indicate the firm has reached its targeted allocation, while continued buying would suggest ARK still views the recent decline as an attractive entry opportunity.
Investors may also monitor Circle’s revenue performance, the market penetration of Open USD, regulatory developments affecting stablecoins, and any shifts in analyst coverage. The transactions alone do not confirm a long-term price forecast, as portfolio limits, stock performance, and routine fund management may all influence ARK’s trading decisions.
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