Cathie Wood's Ark Invest plowed $37 million into Circle and SpaceX on August 5, hours after both companies posted second-quarter results. The timing signals confidence despite mixed market reactions to the earnings themselves.
Circle pulled in $17.3 million of that haul. Ark spread 273,343 shares across three funds, with ARKK taking the lion's share at 194,333 shares. The stablecoin issuer reported $701 million in revenue and reserve income for Q2, up 7% year over year but still short of Wall Street's $713 million estimate. USDC in circulation jumped 19% to $73.3 billion. On-chain transaction volume exploded 151% to $14.8 trillion. Circle stock closed flat at $63.28, making it the ninth-largest holding in ARKK at 3.68% portfolio weight.
The purchase extends Ark's conviction in the company. Ark has bought Circle shares repeatedly since July, when the firm secured key regulatory approvals. Circle plans to launch its Arc Layer-1 blockchain on September 16, with BlackRock, DTCC, Visa, and Mastercard as founding validators.
SpaceX trade came on the heels of a sharp drop
Ark's SpaceX purchase was more aggressive relative to the stock's movement. The company bought 181,830 shares worth $19.7 million as SpaceX shares tanked 13.61% to $108.27, well below the $135 June IPO price. ARKK absorbed 104,008 of those shares, with the remainder split across ARKQ, ARKW, and ARKX.
SpaceX's earnings told a different story. Revenue surged 92% to $7.8 billion, crushing analyst expectations of $6.8 billion. The company's operational momentum contrasts sharply with the stock's weakness, suggesting the market may have overreacted to some aspect of the results or guidance.
Ark's buying spree into weakness on both positions hints the fund sees long-term value where short-term traders see reason to sell.
This article is for informational purposes only and should not be construed as financial advice or investment recommendation.
