ARK Invest Sells $52 Million in Circle Shares After 387% Gain

ARK Invest, led by Cathie Wood, has sold $52 million worth of Circle shares just 11 days after the stablecoin giant’s IPO. This move has sparked debate over whether it signals broader concerns about Circle’s valuation or is simply a textbook portfolio rebalance after explosive gains.

ARK offloaded 342,658 Circle shares across three of its flagship ETFs—ARK Innovation, Next Generation Internet, and Fintech Innovation—on June 16, 2025. This marks ARK’s first sale of Circle stock since acquiring 4.49 million shares at IPO, a stake then valued at $373 million. Despite the sale, ARK still holds over 4.15 million shares worth roughly $628 million, maintaining Circle as a top holding in its funds.

The timing of the sale is notable: Circle’s stock price has soared nearly 5x from its $31 IPO price to close at $151, with an intraday high of $165.60—an astonishing 387% surge in less than two weeks. ARK’s average purchase price was around $96, meaning the firm locked in a 50% gain on this tranche.

Some market watchers see ARK’s move as a classic case of profit-taking after a parabolic rally, not an indictment of Circle’s long-term prospects. ARK has a history of trimming positions after sharp run-ups—recently doing the same with Coinbase and Robinhood—while maintaining core exposure to high-conviction names. On the day of the Circle sale, ARK also reduced Meta holdings and added to Nvidia and DoorDash, underscoring its dynamic approach to portfolio management.

Equity analysts are split on Circle’s outlook. Bulls point to Circle’s massive USDC ecosystem, strong regulatory compliance, and a capital-light, high-margin business model. Bears, however, warn that Circle’s revenues are highly sensitive to interest rates, with 99% of Q1 2025 net income coming from interest on USDC reserves. If rates fall or stablecoin competition heats up, Circle’s earnings could face pressure.

ARK’s Circle sale fits a broader pattern: the firm frequently trims fintech winners after major rallies, as seen with Coinbase, Robinhood, and others in 2024–2025. These moves are typically framed as risk management rather than a loss of faith in the underlying business. Circle remains a top-3 holding in ARKW and ARKF, just behind Coinbase.

On-chain data shows USDC’s velocity—how often the stablecoin changes hands—has climbed steadily in 2025, rising from 3.45e-12 to 5.50e-12 in Q1 alone. This uptick signals growing usage in DeFi, payments, and institutional settlements, supporting bullish arguments for Circle’s long-term growth. USDC’s expansion to new blockchains like XRP Ledger and World Chain further boosts its utility and network effects.

Looking ahead, equity analysts remain cautiously optimistic. Some see Circle’s stock as a potential $300 candidate if USDC circulation and platform revenues continue to scale. Others urge caution, citing the risk of post-IPO insider selling and the company’s reliance on interest income. The consensus: Circle’s Q3 earnings and USDC adoption trends will be critical in justifying its lofty valuation.

ARK Invest’s $52 million Circle sale is more a sign of disciplined portfolio management than a red flag for Circle’s future. With USDC adoption rising and Circle’s stock still a core ARK holding, all eyes now turn to Q3 earnings—and whether the stablecoin leader can maintain its momentum in a fast-evolving fintech landscape.