ARK Invest, led by Cathie Wood, recently sold part of its Circle shares after a significant post-IPO stock increase, yielding a notable profit.
ARK Invest's Strategic Sales
ARK Invest sold 1.25 million shares of Circle over the past week, grossing approximately $243 million. This sale is part of a profit-taking strategy as Circle's stock surged by 248% since its market debut. Specifically, 609,175 shares were sold on Friday alone for $146.2 million.
Significant Surge in Circle's Stock
ARK's sales attracted attention from industry analysts, constituting 29% of its original stock allocation. Despite this activity, ARK remains a major shareholder in Circle with approximately $750 million in shares. Cathie Wood stated that "the selling was primarily profit-taking following CRCL's post-IPO rally rather than an exit from the investment entirely."
Market Impact and USDC Stability
Market analysts observed the volatility of Circle's stock, reflecting broader trends and investor sentiment. Meanwhile, the stablecoin USDC remains stable around $1.00 with a market cap over $61 billion, holding a consistent dominance.
The sale of Circle shares by ARK Invest highlights the firm's strategic approach to profit-taking while maintaining significant holdings, indicating continued confidence in the company's future growth.
