On Wednesday, Ark Invest's Kathy Wood purchased approximately $17.3 million worth of Circle shares and about $20 million worth of SpaceX shares.
Both transactions occurred on the same day SpaceX shares fell 13.6% amid a sharp rise in artificial intelligence-related expenditures.
Circle Beats Profit Expectations but Misses on Revenue
Ark bought 273,343 shares of Circle, distributed across the Ark Innovation ETF (ARKK), Ark Next Generation Internet ETF (ARKW), and Ark Blockchain & Fintech Innovation ETF (ARKF).
That day, Circle's stock closed nearly flat, rising 0.05% to $63.28, meaning the value of the share package was about $17.3 million.
According to Ark data, the $USDC issuer ranks ninth in the ARKK portfolio with a 3.68% weighting, representing $223.4 million. Ark limits any single position to 10% of a fund, so it is diversified across its ETFs, and there is still room for further growth.
In the second quarter, Circle's total revenue and reserve interest income reached $701 million, up 7% year-over-year. This figure fell short of analysts' forecast of $712-$718 million. CRCL shares fell about 3% in pre-market trading before recovering.
Adjusted earnings were 18 cents per share versus a forecast of 16 cents, and net income from continuing operations was $48 million. Adjusted EBITDA rose 8% to $143 million. The total circulating supply of $USDC increased 19% to $73.3 billion, and blockchain transaction volume grew 151% to $14.8 trillion.
Circle's revenue from reserves, meaning the money the company earns on the assets backing $USDC, was $668 million, up 5% year-over-year. However, the yield on these reserves decreased by 66 basis points. Circle has larger reserves and earns less profit per dollar from them.
The launch of Circle's Arc blockchain on the main public network is scheduled for September 16th, with founding validators including BlackRock, DTCC, Visa, and Mastercard.
SpaceX Shares Drop 13.6% as Capital Expenditures Spike Sixfold
Ark purchased 181,830 shares of SpaceX across the ARKK, Ark Autonomous Technology & Robotics ETF (ARKQ), ARKW, and Ark Space & Defense Innovation ETF (ARKX) funds, amounting to approximately $20 million.
This order came as SpaceX shares fell 13.6% to $108.27, below the IPO price of $135. Cryptopolitan reports that revenue grew 92% year-over-year to $7.8 billion, with a net loss of $541 million, according to an analytical review.
Investors were spooked by expenses after capital expenditures soared to $18.4 billion, six times higher than the previous quarter, primarily on building AI infrastructure.
According to Elon Musk on a conference call, SpaceX expects its annual revenue to reach $1 trillion by 2030, or possibly as early as 2029, which is sooner than previously anticipated for 2031.
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