Cathie Wood’s ARK Invest recently made headlines after selling around $110 million worth of Circle (CRCL) shares on June 23. This move comes as part of a trend of profit-taking by the firm just weeks after the stablecoin issuer went public.
In the latest trading disclosure, it was revealed that the ARK Innovation ETF (ARKK) sold the most significant portion of CRCL shares, offloading 306,921 shares. This was followed by the ARK Next Generation Internet ETF (ARKW), which sold 72,302 shares, and the ARK Fintech Innovation ETF (ARKF), which divested 36,621 shares. Altogether, these three funds sold 415,844 CRCL shares for a total of $109.6 million.
These recent sales follow a series of divestments totaling around $240 million across three trading sessions on June 16, 17, and 20. With the latest sale, ARK has now liquidated a combined $350 million in CRCL holdings within just four trading sessions.
The selling activity comes amidst a remarkable rally in Circle’s stock, which has driven the firm’s valuation to new record highs. Since going public at $31 per share and raising $1.05 billion, the stock has surged by nearly 750% to reach a peak near $300. This has pushed Circle’s valuation beyond $63 billion, with an enterprise value exceeding $70 billion during trading on June 23.
Circle’s rapid ascent in valuation now places it ahead of several prominent fintech firms. According to Artemis founder Jon Ma, Circle’s valuation has surpassed Robinhood’s $68 billion market cap and now exceeds Nubank ($59 billion) and Block ($38 billion).
At its intraday peak, Circle even briefly outpaced Coinbase in market cap on a fully diluted basis, according to Dragonfly’s general partner, Rob Hadick. Despite being a newcomer to public markets, Circle’s valuation metrics are raising eyebrows, trading at 32 times its revenue, 80 times its gross profit, and over 280 times its earnings.
However, bullish observers argue that this growth is supported by USDC’s global relevance and the increasing institutional adoption of stablecoins. This rapid ascent has positioned Circle as a top contender among US-listed crypto firms. Ma believes that if Circle can maintain its current trajectory, it could permanently surpass Coinbase’s market value in the future.
In conclusion, the recent sales of CRCL shares by ARK Invest and the significant surge in Circle’s valuation highlight the dynamic nature of the crypto market. With its impressive growth and potential for further expansion, Circle is solidifying its position as a key player in the industry.