Ark Invest buys $13.9M in Circle shares while trimming Robinhood stake

Ark Invest has expanded its exposure to Circle and Block while cutting its Robinhood position, adding nearly $15.4 million worth of shares across the three companies.

Summary

• Ark Invest bought nearly $13.9 million worth of Circle shares and added to its Block position.
• The investment firm sold about $3.15 million worth of Robinhood shares as the stock moved higher.
• The latest trades continue Ark’s recent pattern of buying selected stocks after price declines while rebalancing portfolio holdings.

According to Ark Invest’s latest daily trading disclosure, the investment firm purchased 220,012 shares of Circle Internet Group across its ARK Innovation ETF (ARKK), ARK Next Generation Internet ETF (ARKW), and ARK Fintech Innovation ETF (ARKF). Based on Tuesday’s closing price of $63.22, the acquisition was worth about $13.9 million.

The same filing showed Ark also bought 19,029 shares of Block Inc. through ARKW and ARKF. Valued at roughly $1.52 million using Tuesday’s closing price of $79.99, the purchase came as the blockchain-focused fintech company ended the session up 1.61%.

On the selling side, the firm trimmed its Robinhood Markets position by 27,742 shares. With Robinhood closing 3.27% higher at $113.45 on Tuesday, the sale was valued at about $3.15 million.

Circle purchase comes after recent price slide

Circle edged up 0.35% on Tuesday but remained down 24.17% over the past month after a sharp decline earlier in July following the launch of the Open USD stablecoin project.

The recent weakness has divided analysts. While some continue to hold a positive view on the stablecoin issuer, Mizuho downgraded Circle to Underperform from Neutral and lowered its price target to $50 from $85. The brokerage said competition from Open USD could pressure Circle’s business over time.

The latest purchase also extends a pattern seen in recent weeks. On June 26, Ark increased its holdings in Circle, Coinbase, Bullish, and Robinhood after all four stocks finished the session lower, adding about 9,264 Circle shares, 9,014 Coinbase shares, 9,136 Bullish shares, and 35,023 Robinhood shares as prices weakened.

Earlier portfolio updates showed a similar approach. Ark bought roughly $18.4 million worth of Coinbase after the exchange operator’s shares had fallen for nearly a month, accumulated more than $4.4 million of Bullish stock during a multi-session decline, and added about $32.5 million worth of SpaceX following a drop of more than 16% from its post-listing peak.

Unlike the latest Circle purchase, the Robinhood transaction moved in the opposite direction. The brokerage’s shares gained more than 3% on Tuesday, and Ark reduced its position after previously buying additional Robinhood shares during periods of weakness.

Ark manages its exchange-traded funds under a portfolio rule that limits any single holding to no more than 10% of a fund’s assets. As stock prices change, the firm periodically rebalances positions to keep those weightings within its target range.