Ark Invest Adds Circle and SpaceX After Earnings

TLDR

• Ark Invest bought 273,343 Circle shares worth about $17.3 million after the company released its Q2 results.
• The firm also purchased 181,830 SpaceX shares valued at nearly $19.7 million.
• Circle reported $701 million in revenue and reserve income, up 7% year over year but below estimates.
• USDC circulation rose 19% to $73.3 billion, while onchain transaction volume reached $14.8 trillion.
• Circle plans to launch its Arc Layer-1 blockchain mainnet on September 16.

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Cathie Wood’s Ark Invest bought about $17.3 million in Circle Internet Group shares and nearly $19.7 million in SpaceX stock on August 5. The purchases came hours after both companies released their second-quarter results. Ark Invest spread the trades across several exchange-traded funds. Both trades followed volatile sessions.

Ark Invest Adds 273,343 Circle Shares

Ark Invest purchased 273,343 Circle shares across ARKK, ARKW, and ARKF. ARKK received the largest share, with 194,333 shares. ARKW added 55,135 shares, while ARKF bought 23,875 shares.

Circle closed at $63.28, up 0.05% for the session. At that price, the purchase was worth about $17.3 million. Circle now ranks as the ninth-largest holding in ARKK, with a 3.68% portfolio weight.

The buy followed Circle’s second-quarter earnings report. Revenue and reserve income reached $701 million, up 7% from a year earlier. However, the figure missed the Wall Street estimate of about $713 million.

Adjusted EBITDA rose 8% to $143 million. Net income from continuing operations reached $48 million. USDC circulation increased 19% to $73.3 billion, while onchain transaction volume climbed 151% to $14.8 trillion.

Circle repeated plans to launch its Arc Layer-1 blockchain on September 16. BlackRock, DTCC, Visa, and Mastercard will serve among the founding validators, according to the company.

Ark Invest has increased its Circle position since the company received trust approvals in July. The firm also bought Circle shares on July 31, May 12, and March 24, based on its trade disclosures.

SpaceX Purchase Follows Sharp Stock Drop

Ark Invest also bought 181,830 SpaceX shares across ARKK, ARKQ, ARKW, and ARKX. ARKK received 104,008 shares, the largest part of the purchase.

SpaceX closed at $108.27 after falling 13.61%. The stock remains below its $135 June IPO price. The latest Ark Invest purchase was worth about $19.7 million at Wednesday’s close.

SpaceX reported revenue of $7.8 billion, up 92% from a year earlier. The result beat the $6.8 billion analyst estimate. Its net loss narrowed to $541 million, while adjusted EBITDA rose 191% to $3.5 billion.

Investors focused on quarterly capital spending of $18.4 billion. About $16 billion went toward AI computing infrastructure. The first insider lock-up tranche also expires on August 6, allowing some restricted shares to enter the market.

SpaceX said Starlink subscribers doubled to 12 million. The company also kept its target of reaching a $100 billion annualized revenue run rate by December.