Ark Invest bought $17M in Circle and $20M in SpaceX shares on Aug. 5, as USDC circulation rose 19% YoY and SpaceX shares dropped 13.6% despite a 92% revenue jump.
Cathie Wood's Ark Invest moved into both Circle Internet Group and SpaceX on Aug. 5, picking up tens of millions of dollars in shares from each company on a day when their stocks told very different stories.
Ark bought 273,343 shares of Circle across three of its funds: the Ark Innovation ETF (ARKK), the Ark Next Generation Internet ETF (ARKW), and the Ark Blockchain and Fintech Innovation ETF (ARKF). Circle's stock closed up 0.05% at $63.28, putting the value of Ark's purchase at approximately $17.3 million.
Circle Posts $701M in Q2 Revenue as USDC Grows
Circle released its second-quarter results on the same day, reporting total revenue and reserve income of $701 million, a 7% increase year-over-year. Adjusted EBITDA climbed 8% to $143 million. USD Coin (USDC) in circulation closed the quarter at $73.3 billion, up 19% from a year earlier, while on-chain transaction volume reached $14.8 trillion, a 151% jump year-over-year.
Ark's rules cap any single holding at 10% of a fund's portfolio to maintain diversification. Circle currently ranks as the ninth-largest position within ARKK, with a 3.68% weighting and a total value of $223.4 million in that fund alone.
Related Article: Ark Invest Buys Coinbase, Circle Shares as Stocks Rise
SpaceX Shares Sink Despite Revenue Surge
Ark also acquired 181,830 SpaceX shares on Aug. 5, spread across ARKK, the ARK Autonomous Technology and Robotics ETF (ARKQ), ARKW, and the ARK Space and Defense Innovation ETF (ARKX). At a closing price of $108.27, the position was worth approximately $19.7 million. SpaceX stock fell 13.61% on the day, slipping below its IPO price of $135.
The drop came even as SpaceX reported second-quarter revenue of $7.8 billion, a 92% increase from the same period a year earlier. Investors focused on the company's $18.4 billion in capital expenditure during the quarter, which was six times higher than the prior year. SpaceX executives attributed the spending to an expansion of the company's artificial intelligence capabilities. Elon Musk said he now expects SpaceX to reach $1 trillion in annual revenue by 2029 or 2030, ahead of the company's earlier estimate of 2031.
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