Ark Invest bought $30.5 million worth of shares in Circle Internet (CRCL) on Wednesday as the issuer of the second-largest stablecoin fell 12%.
Cathie Wood’s investment management firm added a total 353,328 CRCL shares across three of its exchange-traded funds (ETFs): Innovation (ARKK), Next Generation Internet (ARKW) and Fintech Innovation (ARKF).
Ark frequently snaps up large amounts of company shares when the price appears to be temporarily depressed. CRCL slid to $86.30, the lowest close since June 5, after its steepest single-day drop since a 16% fall on June 27.
The fall in Circle’s share price coincided with the USDC issuer reporting third-quarter net income of $214 million, triple the figure of the same quarter last year. While earnings per share (EPS) of 64 cents beat analysts estimates, concern over a U.S. interest-rate cut next month weighed on the stock. Lower rates reduce returns on the instruments the company holds to back the dollar-pegged token.
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