ARK Invest, led by Cathie Wood, sold $146 million worth of Circle (CRCL) shares following a remarkable 250% rally after Circle's June 5 debut on the NYSE. This sale represents about 14% of ARK's initial investment and is part of a strategic approach to capitalize on stock price surges. Despite the sizeable sell-off, ARK remains Circle's eighth-largest shareholder with approximately $750 million in holdings.
The sale triggered a short-term retracement of Circle's stock price, falling to $149 after peaking; however, USDC stablecoin operations remained unaffected. The stablecoin market continues to exhibit resilience, supported by legislative confidence such as the US Senate’s GENIUS bill.
The divestment involved 1.25 million shares sold over the week across three ARK funds, including ARKK, ARKW, and ARKF, with ARKK leading the sell-off. Other major investors like BlackRock have maintained or increased their exposure, emphasizing broad institutional support for Circle. Insider sales by Circle executives were also noted, with some planning partial sell-offs.
Historically, such institutional sales post-IPO often result in temporary price corrections without long-term detriment to stablecoin ecosystems. Cathie Wood framed the sale as standard portfolio management aimed at realizing gains rather than signaling fundamental problems.