On Monday, Ark Invest purchased $5.5 million worth of shares in Circle Internet (CRCL), the stablecoin developer, after its first-quarter earnings report sent the stock soaring.
The investment management company headquartered in St. Petersburg, Florida, added 41,904 shares to its three exchange-traded funds (ETFs): Innovation (ARKK), Next Generation Internet (ARKW), and Blockchain and Financial Technology Innovation (ARKF).
CRCL stock rose 16% to $131.76, the highest closing price since March 18, after earnings per share exceeded expectations at 21 cents per share.
Circle's USDC is the second-largest stablecoin, and the company also announced it raised $222 million through a presale of its ARC token for its Arc blockchain.
This is Ark's first purchase of Circle shares since March 24, when Circle's stock price dropped 20% and Ark invested $16.3 million. Ark last sold Circle shares on April 17, when the stock closed around $106, and Ark sold $1.2 million worth of Circle shares.
Cathy Wood's company frequently buys stocks on dips to capture greater value and rebalances its ETF weights. It is uncommon for large-scale purchases to coincide with significant price increases.