Cathie Wood’s Ark Invest Sells $44.8 Million in Circle Shares Amid 400% Stock Surge

Cathie Wood’s Ark Invest has continued to sell its holdings in Circle, the stablecoin issuer, following the company's successful initial public offering (IPO). On June 17, the investment management firm sold an additional $44.8 million worth of CRCL shares, following a $51.7 million sale the previous day.

These back-to-back sales were executed across three of Ark’s exchange-traded funds (ETFs): ARK Innovation ETF (ARKK), ARK Next Generation Internet ETF (ARKW), and ARK Fintech Innovation ETF (ARKF). The breakdown of the sales includes 208,654 shares from ARKK, 65,320 shares from ARKW, and 24,134 shares from ARKF.

The sales indicate that Ark Invest is taking profits as Circle's stock price continues to rise post-IPO. Since its debut at $31 on June 5, CRCL has surged nearly 400%, briefly reaching $165 earlier this week. At the time of the latest sale, the stock was trading at $149.15, reflecting a slight decrease of 1.26% in the past 24 hours.

In total, Ark Invest has now sold approximately 642,000 CRCL shares across its funds over the past two days. Despite these sales, the firm still holds a significant position in Circle, with around 3.9 million shares remaining, valued at approximately $575 million at current prices. Ark Invest initially purchased 4.5 million CRCL shares.

The decision to sell Circle shares is part of Ark Invest's strategy to manage its portfolio in response to the recent rally in Circle's stock price. By taking profits, the firm can reallocate capital to other investment opportunities that may offer better returns. This approach is consistent with Ark Invest's focus on identifying high-growth sectors and companies.

The sales have sparked debate among investors and analysts about the future direction of Circle's stock. Some view the sales as a potential sign that the stock may be overvalued, while others see it as a strategic move by Ark Invest to manage its portfolio. Regardless of the interpretation, the sales highlight the importance of active portfolio management in navigating the dynamic investment landscape.