ARK Invest Buys $16 Million in Circle Stock on 20% Drop Amid Stablecoin Regulatory Pressure

Cathie Wood-led ARK Invest purchased 161,513 shares of Circle Internet Group (NASDAQ: CRCL) on March 24, 2026, worth approximately $16.3 million, as the USDC issuer’s stock tumbled 20% following a series of negative catalysts including restrictive stablecoin legislation, freezing of USDC wallets linked to an ongoing civil case, and increased competition from Tether’s audit progress.

The purchase was executed across ARK’s ARKK, ARKW, and ARKF exchange-traded funds. Circle shares closed at $101.17, rebounding 1.5% in after-hours trading, while the stock remains up 65% over the past month but down 23% over six months.

Separately, ARK sold 41,064 shares of Bullish (BLSH), worth approximately $1.5 million, as the crypto exchange’s stock dropped 5.5% on the day.

Circle’s Stock Decline: Key Catalysts

CLARITY Act Draft Language

Draft language for the U.S. CLARITY Act circulated among industry insiders earlier this week, signaling a more restrictive shift that could ban yield payments for simply holding stablecoins—a point of contention in Washington for months. Mizuho analysts attributed Circle’s intraday drop to the potential negative impact this could have on Circle’s USDC business, which relies on generating revenue from reserve yields.

USDC Freeze on Wallets Linked to Civil Case

Onchain investigator ZachXBT published a post on March 24 claiming that Circle had frozen the USDC balances of 16 hot wallets tied to various businesses, with affected businesses linked to an ongoing U.S. civil case. Industry commentators noted that the action highlights the ongoing risks of centralization in USDC, where a single issuer can freeze significant business funds at the direction of U.S. authorities.

Tether’s Audit Announcement

Circle’s biggest rival, Tether, announced on March 24 that it is moving forward with its first full financial audit and has hired a Big Four accounting firm. The development could erode Circle’s position as the transparent and compliant alternative to Tether, as Tether has long faced criticism over the opacity of its reserves.

ARK’s Investment Strategy

Buying the Dip

ARK’s purchase appears to be a strategic move to buy the dip following Circle’s sharp decline. The firm’s investment strategy limits any individual holding to approximately 10% of a fund’s portfolio, ensuring diversification and prompting rebalancing as weightings shift with market movements.

Circle’s Position in ARK Portfolio

According to the firm’s disclosures, Circle is the third-largest holding in ARK’s ARKK ETF, with a 5.48% weighting valued at $334.5 million. ARK has been actively rebalancing its exposure to Circle, Bullish, and other crypto-related stocks throughout early 2026, including Coinbase and Robinhood.

Additional ARK Trades

Bullish Sale

ARK sold 41,064 shares of Bullish (BLSH) across its ETFs, worth approximately $1.5 million based on Tuesday’s closing price of $37.37. Bullish stock dropped 5.51% on the day, continuing a selling trend from previous days that suggests strategic repositioning.

Other Transactions

In addition to the Circle and Bullish trades, ARK’s March 24 filings showed:

• Purchases: 22,538 shares of 10X Genomics (TXG) for approximately $431,000

• Sales: 190,100 shares of Twist Bioscience (TWST) for $8.5 million; 54,640 shares of Roku (ROKU) for $5.3 million; 18,620 shares of Teradyne (TER) for $5.7 million

Frequently Asked Questions

Why did Circle’s stock drop 20% on March 24?

Circle shares fell 20% amid multiple negative catalysts: draft language for the CLARITY Act suggesting a ban on stablecoin yield payments, news that Circle had frozen USDC balances of 16 wallets linked to an ongoing civil case, and Tether’s announcement that it is proceeding with its first full financial audit with a Big Four accounting firm.

How many Circle shares did ARK Invest purchase?

ARK purchased 161,513 shares of Circle across its ARKK, ARKW, and ARKF ETFs on March 24, valued at approximately $16.3 million based on the closing price of $101.17.

What is ARK’s current position in Circle?

Circle is the third-largest holding in ARK’s ARKK ETF, with a 5.48% weighting valued at $334.5 million. ARK’s investment strategy limits any individual holding to approximately 10% of a fund’s portfolio.