Ark Invest buys $30.5M of Circle after 12% post-earnings slide

ARK Innovation ETF (ARKK) bought 245,830 shares, ARK Next Generation Internet ETF (ARKW) added 123,613, and ARK Fintech Innovation ETF (ARKF) purchased 36,885 during Wednesday’s session. The trades increased Ark’s exposure to the issuer of the USDC stablecoin.

Circle reported third-quarter results on the same day. Total revenue reached $740 million, up 66% year over year, and net income rose 202% to $214 million. USDC’s circulating supply stood at $73.7 billion at quarter end, up 108% from a year earlier.

An equity research note from William Blair reiterated an “outperform” rating and urged investors to “build Circle positions on weakness with the stock down 12%.” The note added, “We see Circle as a clear leader in a winner-take-most market as it builds out critical network infrastructure, Circle Payments Network, and Arc.” The report also listed risks, including regulatory uncertainty, industry fragmentation, intensifying competition, shortcomings in stablecoin infrastructure, corporate inertia, and potential pressure from lower interest rates.

Separately on Wednesday, Circle indicated it is exploring a potential native token for its Arc blockchain as part of its on-chain programmable finance plans. The company launched the Arc public testnet last month for its Layer 1, stablecoin-centric chain.

Circle went public in June and later opened the Arc public testnet on Oct. 28. Third-quarter updates noted its reserve return rate eased to 4.15% after Federal Reserve rate cuts in September, while distribution and operating costs increased 74% and 70%, respectively. USDC supply was about $75 billion.