Cathie Wood’s Ark Invest purchased nearly $14 million worth of Circle Internet Group shares on Thursday, increasing its stake in the stablecoin issuer despite growing pressure on the company. At the same time, the investment firm sold nearly $10 million worth of Robinhood stock as part of routine portfolio rebalancing.
The purchase comes as Circle faces difficult times. THE $USDC The issuer’s shares have been under pressure, competition in the stablecoin market is intensifying, and the company is facing new allegations regarding its cooperation with law enforcement. Despite this, Ark’s latest investment indicates that he still sees long-term value in the company.
Ark Adds Circle Despite Recent Stock Drop
Ark Invest purchased 217,896 shares of Circle Internet Group through its exchange-traded funds ARKK, ARKW and ARKF. Based on Thursday’s closing price of $63.01, the purchase was worth approximately $13.7 million.
The investment comes as Circle shares continue to struggle. The stock fell 1.65% on Thursday and more than 20% over the past month as competition in the stablecoin market intensified following the launch of Open USD (OUSD), a new initiative backed by more than 140 companies, including Visa, Mastercard, BlackRock and Coinbase.
Despite the recent decline, some Wall Street analysts remain optimistic. Earlier this month, Bernstein reiterated his outperform rating on Circle and maintained a $190 price target, a sign of confidence in the company’s long-term prospects.
Along with the purchase of Circle, Ark reduced its position in Robinhood, selling 85,319 shares worth approximately $9.8 million. Robinhood shares rose 1.39% to close at $115.11 on Thursday.
OCC approval marks major milestone
Separately, Circle recently received final approval from the U.S. Office of the Comptroller of the Currency to establish Circle National Trust. The federally regulated trust bank will allow the company to expand its digital asset custody services and could potentially manage its collateral reserves. $USDC stable part.
Circle co-founder and CEO Jeremy Allaire called the approval a significant milestone for the company, saying it “marks a pivotal step in integrating blockchain technology and digital assets into the heart of the U.S. financial system.”
Legal control adds new challenges
Despite its regulatory progress, Circle is facing new scrutiny over how it has handled cryptocurrency theft cases.
According to a report from the International Consortium of Investigative Journalists, some law enforcement officials have accused the company of not doing enough to help scam victims recover stolen funds. Wisconsin prosecutors also alleged Circle failed to comply with a warrant involving stolen property. Circle disputed the allegations, calling the complaint baseless.
Related: Robinhood Chain Scam Tokens Trigger Wallet Issues as Relay Confirms Loss of User Funds
