Key Takeaways
- Ark Invest has offloaded 342,658 Circle shares, taking profits after less than two weeks.
- However, the investment firm retains a significant position in CRCL.
- Circle stock has surged 387% from its IPO price of $31 per share.
Less than two weeks after investing in Circle, Ark Invest has already taken some profits from its position.
For investors who snapped up CRCL at the IPO price of $31 per share, Monday’s closing price of $151 represents nearly a fivefold return on their initial investment.
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Ark Invest Cuts Circle Position
While Cathie Wood’s investment company didn’t get in on Circle’s IPO (investor demand reportedly exceeded availability by more than 25 times), it did buy shares on June 5, the stock’s first day of trading.
Between them, ARK Innovation ETF (ARKK), ARK Next Generation Internet ETF (ARKW) and ARK Fintech Innovation ETF (ARKF) purchased nearly 4.5 million shares at an average price of around $96.
| Fund |
Value of Circle Stake on June 17 |
| ARKK |
$408,625,155.12 |
| ARKW |
$126,631,332.10 |
| ARKF |
$73,382,984.22 |
While it has moderately trimmed its position, Ark still holds Circle stock worth over $608 million at the close of trading on Monday, representing unrealized profits of around $185 million.
CRCL Climbs 387% Since IPO
Circle’s remarkable rally has made it one of the hottest tech IPOs of the year. From its IPO price of $31, the stock has surged 387% to close at $151 on June 16.
Even as investors like Ark begin to take profits, the momentum behind CRCL remains strong as it enters its second full week of trading.
CRCL’s explosive gains have prompted warnings from the likes of Arthur Hayes, who cautioned about a potential stablecoin bubble on Tuesday.
However, he noted that Circle’s IPO “marks the beginning not the end of this cycle’s stablecoin mania.”
More IPOs Expected
Following Circle’s stock market debut, more crypto firms are expected to go public in the coming months.
Looking forward, top IPO contenders include Bithumb, Consensys and Kraken.
Among stablecoin issuers, Tether’s leadership have downplayed the prospect of going public. But companies like Paxos and First Digital may see the current buzz around Circle as an opportunity.
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James Morales is CCN’s blockchain and crypto policy reporter. He has been working in the news media since 2020, writing about topics such as payments, banking and financial technology. These days, he likes to explore the latest blockchain innovations and the evolving landscape of global crypto regulation.
With an educational background in social anthropology and media studies, James uses his platform as a journalist to explore how new technologies work, why they matter and how they might shape our future.
