Cathie Wood’s ARK Invest buys the dip in Circle Internet

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Cathie Wood’s ARK Invest snapped up around $30.5 million worth of Circle Internet Group (CRCL [https://seekingalpha.com/symbol/CRCL]) shares across three of its funds on Wednesday, amid a sharp decline in the stock despite the company’s strong quarterly results.

The ARK Innovation ETF (ARKK [https://seekingalpha.com/symbol/ARKK]) bought 245,830 shares, the ARK Next Generation Internet ETF (ARKW [https://seekingalpha.com/symbol/ARKW]) added 70,613 shares, and the ARK Fintech Innovation ETF (ARKF [https://seekingalpha.com/symbol/ARKF]) picked up 36,885 shares.

CRCL shares closed at $86.30 on Wednesday, down 12.21%, despite reporting better-than-expected Q3 results [https://seekingalpha.com/news/4520362-circle-internet-group-gaap-eps-of-064-beats-by-046-revenue-of-740m-beats-by-4043]. The fintech behind USCoin (USDC-USD [https://seekingalpha.com/symbol/USDC-USD]) reported $740 million in revenue, up ~66% year-over-year, and net income of $214 million, a 202% jump from last year. USDC circulation also grew 108% from a year earlier to $73.7 billion at quarter-end.

In his analysis [https://seekingalpha.com/article/4842579-q3-25-earnings-circles-valuation-and-revenue-concentration-problems]of the results, Seeking Alpha analyst Mike Fay highlighted concerns around Circle’s valuation and its heavy reliance on reserve revenues. “Circle Internet Group (CRCL [https://seekingalpha.com/symbol/CRCL]) remains highly dependent on reserve revenues, with 96% of top-line income tied to interest rates. Its valuation is extended based on optimistic assumptions and estimates about future revenue from reserves. To reduce risk, CRCL must diversify revenue streams as falling interest rates and political motivations could create significant headwinds in 2026,” Fay said.

MORE ON CIRCLE INTERNET GROUP, INC., ARK INNOVATION ETF, ETC.

* Tracking Cathie Wood's ARK Invest 13F Portfolio - Q3 2025 Update [https://seekingalpha.com/article/4842884-tracking-cathie-woods-ark-invest-13f-portfolio-q3-2025-update]
* Circle Internet Group, Inc. (CRCL) Q3 2025 Earnings Call Transcript [https://seekingalpha.com/article/4842515-circle-internet-group-inc-crcl-q3-2025-earnings-call-transcript]
* Q3-25 Earnings: Circle's Valuation & Revenue Concentration Problems [https://seekingalpha.com/article/4842579-q3-25-earnings-circles-valuation-and-revenue-concentration-problems]
* Circle Internet Q3 earnings beat, as USDC coin transaction volume climbs [https://seekingalpha.com/news/4520382-circle-internet-q3-earnings-beat-as-usdc-coin-transaction-volume-climbs]
* Earnings week ahead: DIS, CSCO, OXY, PLUG, B, AMAT, JD, BYND, PSKY, and more [https://seekingalpha.com/news/4518496-earnings-week-ahead-dis-csco-oxy-plug-b-amat-jd-bynd-psky-and-more]