Circle Stock Plunges 6.06% as ARK Invest Trims Holdings

On June 24, 2025, Circle's stock experienced a significant drop of 6.06% in pre-market trading, sparking concerns among investors about the company's recent performance and future prospects.

ARK Invest, a prominent investment firm led by Cathie Wood, has been actively reducing its holdings in Circle. The firm's flagship fund, the ARK Innovation ETF, sold approximately 495,000 shares, decreasing its portfolio allocation by about 1.8%. This move follows a series of large-scale sales by ARK Invest, including the offloading of 415,844 shares and another batch worth $243 million. These sales come after Circle's stock surged by 400%, indicating that ARK Invest is taking profits from its significant gains.

Despite Circle's recent market capitalization growth, which has brought it closer to that of major players like Robinhood and Coinbase, the sales by ARK Invest suggest a cautious outlook. The firm's decision to trim its stake in Circle, along with other recent sales, may reflect concerns about the sustainability of the company's growth or broader market conditions.