Ark Invest bought $30.5 million worth of shares in Circle Internet (CRCL) on Wednesday as the issuer of the second-largest stablecoin fell 12%.
Cathie Wood’s investment management firm added a total of 353,328 CRCL shares across three of its exchange-traded funds (ETFs): Innovation (ARKK), Next Generation Internet (ARKW) and Fintech Innovation (ARKF).
Ark often takes up large amounts of company shares when the price appears to be temporarily under pressure. CRCL fell to $86.30, its lowest close since June 5, after its steepest one-day decline since a 16% drop on June 27.
The decline in Circle’s share price coincided with the USDC issuer reporting third-quarter net income of $214 million, a threefold increase over the same quarter last year. While earnings per share (EPS) of 64 cents beat analysts’ estimates, worries about a US rate cut next month weighed on the stock. Lower rates reduce returns on the instruments the company holds to back the dollar-pegged token.
