Ark Invest bought $37 million worth of Circle and SpaceX stock on the same day SpaceX shares cratered 13.6%. Cathie Wood's fund picked up roughly $17.3 million in Circle and about $20 million in SpaceX, a move that signals conviction even as the rocket company's valuation took a hit after capital expenditure jumped to $18.4 billion last quarter.
Circle beats earnings but stumbles on revenue
The stablecoin issuer delivered adjusted earnings of 18 cents per share, beating the 16-cent consensus. Net income from continuing operations hit $48 million. Yet total revenue and reserve income came in at $701 million, missing analyst expectations of $712 million to $718 million. The miss knocked Circle stock down about 3% in premarket trading, though it recovered to close up just 0.05% at $63.28.
What matters underneath: USDC in circulation grew 19% to $73.3 billion. Onchain transaction volume exploded 151% to $14.8 trillion. Reserve income, the money Circle earns on assets backing USDC, reached $668 million, up 5% year-over-year. Adjusted EBITDA climbed 8% to $143 million. The revenue miss looks like a timing issue, not a business problem.
Ark's positioning across three funds
Ark split the Circle purchase across three ETFs: the Innovation ETF (ARKK), the Next Generation Internet ETF (ARKW), and the Blockchain & Fintech Innovation ETF (ARKF). The stake now ranks ninth in ARKK's holdings at 3.68% of the fund, worth $223.4 million. Since Ark caps individual positions at 10%, there's room to keep adding. The fund still has dry powder for both names if momentum shifts.
This article is informational only and does not constitute financial advice. Cryptocurrency and equity investments carry significant risk. Conduct your own due diligence before making any investment decisions.
