- Ark Invest sold 415,844 Circle shares for $109.6M on June 23.
- CRCL closed at $263.45, with a $68.9B market cap.
- Ark retains 3.8M Circle shares after strategic sales.
With a 900 percent gain in Circle stock since its issue, Ark Invest cashed in on June 23 by selling 415,844 shares for $109.6 million. The sale, which took place in three exchange traded funds, marks sound profit taking on the part of Circle, which has rallied in the wake of its IPO.
Circle’s Stock Soars Post-IPO
On June 5, Circle, a firm that issues USDC stablecoins, went public on the New York Stock Exchange with a share price that began at $31. As of close on June 23, the stock that trades as CRCL was at a price of 263.45, which is 9.6% up on the day. After-hours trading saw an additional 2.7% gain. The market cap of the company exceeded that of Coinbase and USDC, reaching an incredible value: 68.9 billion dollars.
During the first public offering (IPO), Ark Invest paid $373,4 million for 4,486,560 shares in Circle. A total of 415,844 shares were sold, reducing the firm’s position. ARK Innovation ETF (ARKK) sold 306,921 shares, ARK Next Generation Internet ETF (ARKW) sold 72,302 shares, and ARK Fintech Innovation ETF (ARKF) sold 36,621 shares.
The 900 percent increase in the share since the IPO has been delivered by positive regulation of stablecoins in the U.S. and the adoption of the World Chain integration with USDC. Circle’s market performance has outpaced expectations, fueling investor interest. Circle’s IPO details
Strategic Portfolio Rebalancing
Several investors sold shares in Circle between June 16 and June 23, with the most recent being Ark Invest, which sold $255.9 worth of shares. This resulted in the most one-day sale on June 20 when Ark sold off $111.6 million as CRCL rocketed 20.00%. On 17 June the firm sold $44.76 million, and on 16 June it sold $51.7 million, reducing its Circle position by almost 30 percent in a week.
As it got rid of its holding in Circle, Ark increased its holdings in other crypto-related equities. Robinhood and Coinbase shares were purchased by the firm on June 23, which changed the focus of the portfolio. This is according to the strategy of Ark to have no individual stock making up more than 10 percent of the portfolio of a fund.
Previous transactions made by Ark comprise the sale of 161,304 shares of Coinbase at a value of $39.4 million and 255,327 shares of Robinhood at a price of 18.5 million during the IPO of Circle. The company has also sold 163,304 shares of the Jack Dorsey-led block issued by the Jack Dorsey-led block in $10.4 million to correct its fintech and crypto portfolio.
On June 24, Circle stock rose 20 percent in a single day to $300, taking its overall market cap to $54 billion. Despite Ark’s divestiture, the corporation retains ownership of 3.8 million CRCL shares, giving it more leverage. The putback is not a bearishness attempt but instead it is controlled profit picking.
Investment choices by the firm are dictated by its obsessive effort in disruptive innovation as stated on its website. The surge of Circle supported by regulatory tailwinds and stablecoin adoption reaffirms both the promise of crypto-adjacent stocks.
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