Cathie Wood’s Ark Invest sold 300K Circle stock shares after a 50% surge from the $96 purchase price shortly after its IPO.
Within days of its acquisition after its massive initial public offering (IPO), Cathie Wood, the leader of Ark Invest, sold off about 300,000 shares of stablecoin company Circle (CRCL).
On Monday, the Circle stock nearly doubled in value from its initial public offering (IPO) price, rising another 13% and regaining the $150 level.
The Circle stock has increased by 50% in the past ten days from its purchase price of $96.
For What Reason Did Cathie Wood’s Ark Invest Abandon Circle Stock?
A total of 288,677 Circle shares were sold by Ark Invest on Monday across the ARK Innovation ETF (BATS: ARKK) and ARK Next Generation Internet ETF (BATS: ARKW) funds.
This sell-off is minuscule compared to the 4.5 million Circle shares that the asset management purchased last week for a whopping $373 million.
Circle stock has already increased by 50% from its purchase price of $96 and is now trading at $151 as of Monday’s closing.
As a result, the Cathie Wood company has already made a massive $185 million profit.
The company did not explain yesterday’s sell-off, but it appears to be a component of their portfolio rebalancing.
Additionally, according to data from Ark Invest Daily, the company has added new interests in Nvidia (NASDAQ: NVDA).
The CRCL stock rise has astounded investors with roughly five times gains from its issue price of $31 since the Circle IPO earlier this month.
Because of this, the company’s valuation has suddenly skyrocketed to an astounding $30 billion, gaining more than $22 billion in just two weeks.
Arthur Hayes, a well-known veteran of the cryptocurrency sector, thinks that other new businesses and banks who have entered the stablecoin race may pose an increasing threat to Circle.
This company issues the USDC stablecoin.
The CEO of BitMEX, however, thinks Circle has a better chance of succeeding than Michael Saylor’s strategy and is soon becoming a US Treasury corporation.
Circle keeps improving and growing its market share even while the CRCL stock is booming on Wall Street.
The USDC stablecoin issuer revealed last week that it would join the XRP Ledger.
Circle has made its USDC stablecoin available to developers, institutions, and users directly on the XRPL mainnet without a bridge.
This integration uses XRPL’s speed and security capabilities to expedite access to USDC liquidity.
