Ark Invest, led by Cathie Wood, made a major investment in this Stablecoin company! Here are the details

Led by Cathie Wood Ark Invest, Circle’s On the day it was offered, it made a great investment in the company by purchasing 4,486,560 shares worth $ 373.4 million.

Ark Invest made $ 373 million in Circle shares

Purchases were made through ARK’s Innovation (ARKK), Next Generation Internet (ARKW) and Fintech Innovation (ARKF) funds.

This purchase arrived on the day Circle began to be traded with the symbol of the “CRCL” symbol on the New York Stock Exchange (NYSE). The company’s shares increased by 168.5 percent on the first trading day and closed for $ 83.23.

The highest level in the day was $ 96. The shares were priced far above $ 31, the upward revised public offering price due to the strong demand of the company.

Circle’s public offering process and its impact on crypto sector

Circle had attempted a public offering twice before. The first is a spac in 2021, and the second is a hidden S-1 application in 2024. The company, which conveyed its last application to the SEC in April this year, had worried that President Trump could be interrupted due to market uncertainty originating from customs tariffs. However, IPO was successfully completed.

Circle CEO Jeremy Allaire evaluated the public offering with the following words:

“Our becoming a public company is a powerful and important turning point for the transition to the internet -based financial system.”

Circle’s USDC is the second largest dollar -backed stablecoini in the world after Tether’s USDT with a supply of $ 60.6 billion.

Ark Invest has reduced some existing positions to finance its new investment. On Thursday, Ark’s own Bitcoin ETF (ARM) was sold $ 17.1 million, while the fund continues to be the biggest asset.

In addition, the company;

• 161,304 ($ 39.4 million) of Coinbase shares
• 255,327 ($ 18.5 million) of Robinhood shares
• Jack Dorsey’s Block company sold 163,304 ($ 10.4 million) shares.

Ark Invest’s investment philosophy predicts that each asset does not weight more than 10 %in the fund portfolio. This strategy aims to protect the diversity of the fund and shows that Circle shares can be re -balancing if there is an increase in value.

As of now, Circle shares took their place in the arc funds as follows:

• With a weight of 4.4 %(251.8 million dollars) in the Arkk fund,
• 4.4 %(77.2 million dollars) in the ARKW fund,
• 4.3 %(44.5 million dollars) in the ARKF fund.

To compare, the highest weight of the same funds include Tesla (10.3%), Ark Bitcoin ETF (8.2%) and Shopify (9%).

*It is not an investment advice.