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 of 353,328 CRCL shares in three of its exchange-traded funds (ETFs): Innovation (ARKK), Next Generation Internet (ARKW) and Fintech Innovation (ARKF).
Ark frequently acquires large amounts of company shares when the price appears to be temporarily depressed. CRCL fell to $86.30, the lowest close since June 5, after its steepest single-day drop since a 16% drop on June 27.
The drop in Circle’s share price coincided with the USDC issuer reporting third-quarter net income of $214 million, triple the figure for the same quarter last year. While earnings per share (EPS) of 64 cents beat analyst estimates, concerns about a U.S. interest rate cut next month weighed on stocks. Lower rates reduce the yield on the instruments the company holds to back the dollar-pegged token.
