Ark Invest Sells $110 Million in Circle Shares Amid 750% Stock Surge

Ark Invest, led by Cathie Wood, has sold approximately $110 million worth of Circle (CRCL) shares on June 23. This move follows a series of profit-taking actions just weeks after Circle went public. The firm’s ARK Innovation ETF (ARKK) sold the largest portion, offloading 306,921 shares, while the ARK Next Generation Internet ETF (ARKW) and the ARK Fintech Innovation ETF (ARKF) sold 72,302 shares and 36,621 shares, respectively. In total, these three funds sold 415,844 CRCL shares for $109.6 million.

These sales come on the heels of previous divestments totaling around $240 million across three trading sessions on June 16, 17, and 20. With the latest sale, Ark Invest has liquidated a combined $350 million in CRCL holdings within four trading sessions.

Circle’s stock has experienced a significant rally, surging by nearly 750% to a peak near $300. This surge has pushed the company’s valuation beyond $63 billion, with enterprise value topping $70 billion during June 23 trading. This sharp climb has positioned Circle ahead of several notable fintech firms, including Robinhood, Nubank, and Block. At its intraday peak, Circle briefly outpaced Coinbase, the largest US-based crypto trading platform, in market cap on a fully diluted basis.

Despite being a new entrant to public markets, Circle’s valuation metrics are raising eyebrows. The firm now trades at 32 times its revenue, 80 times its gross profit, and over 280 times its earnings. Bullish observers argue that this growth is backed by USDC’s global relevance and expanding institutional adoption of stablecoins. According to them, this rapid ascent has positioned Circle as a top contender among US-listed crypto firms. Considering this, some believe Circle could permanently flip Coinbase’s market value in the future if it can hold its current trajectory.