Cathie Wood's Ark Invest has significantly increased its exposure to Circle and SpaceX after the companies' second-quarter earnings, cementing both among the top 10 holdings of the flagship ARK Innovation ETF (ARKK). According to a report published Thursday, SpaceX now ranks as ARKK's fifth-largest position with a market value of nearly $282 million (4.73% weighting), while Circle holds the eighth spot at approximately $233 million (3.90% weighting). The purchases extend a recent buying streak that underscores Ark's commitment to AI, crypto, fintech, and space exploration.
Ark's latest trading disclosure revealed the firm bought 181,830 SpaceX shares across four exchange-traded funds, including ARKK, and 273,343 Circle shares across three funds. Based on closing prices, these trades were valued at roughly $20 million and $17.3 million, respectively. The acquisitions came shortly after the companies reported sharply contrasting Q2 results. Circle's revenue and reserve income rose 7% year-over-year to $701 million, adjusted EBITDA grew 8% to $143 million, and USDC circulation reached $73.3 billion – a 19% annual increase – with on-chain transaction volume surging 151% to $14.8 trillion. Despite that robust growth, Circle's stock was nearly flat, which Ark saw as an opportunity to add to a stake already worth $223.4 million (3.68% weighting before the new purchases).
SpaceX, on the other hand, reported a 92% revenue jump to $7.8 billion but saw its shares plummet 13.6% after announcing $18.4 billion in capital expenditures—six times the prior year's spend—largely aimed at expanding AI capabilities. Ark treated the sell-off as an entry point, consistent with its strategy of tolerating short-term volatility when it believes massive tech investments can unlock enormous future markets. Elon Musk has projected SpaceX could reach $1 trillion in annual revenue by 2030, though that path demands heavy near-term outlays.
These moves follow a broader portfolio rebalancing in late July, during which Ark sold shares of Bitmine, Robinhood, Block, and Bullish while buying roughly $43.5 million of Coinbase and Circle stock and about $14.5 million of SpaceX shares. With Circle, Ark is betting on continued USDC adoption and the potential of blockchain-based payments, even as regulatory and interest-rate risks loom. For SpaceX, the bet hinges on whether AI infrastructure and launch services can eventually generate returns that justify today's capital spending.
