TLDR
- Ark Invest bought 41,904 Circle shares worth about $5.5M across three ETFs.
- Circle stock closed up 15.91% at $131.76 after its Q1 earnings release.
- Circle reported Q1 revenue of $694M, up 20% from a year earlier.
- USDC in circulation rose 28% year-over-year to $77B at quarter-end.
- Bernstein kept an Outperform rating on Circle with a $190 price target.
Ark Invest bought about $5.5 million worth of Circle Internet Group shares on Monday after the stablecoin issuer reported first-quarter results and its stock closed nearly 16% higher.
The investment firm led by Cathie Wood purchased 41,904 Circle shares across three exchange-traded funds, according to Ark’s May 11 trading report. The purchases were made through the ARK Innovation ETF, the ARK Next Generation Internet ETF and the ARK Blockchain and Fintech Innovation ETF.
The buy marked Ark’s first reported Circle purchase since March 24. Ark often adjusts ETF positions when individual holdings move sharply because the firm generally limits any single stock from becoming too large within a fund.
Circle shares closed at $131.76 on Monday, up 15.91% for the session. The stock has gained 49.7% over the past month and is up 66.2% year-to-date, according to market data cited in reports.
The move came after Circle released its first-quarter 2026 earnings, showing higher revenue, lower net income and continued growth in USDC activity.
Ark Adds Circle Across Three ETFs
Ark bought Circle shares through three of its actively managed funds. Circle is already one of Ark’s larger holdings in several portfolios.
In the ARK Innovation ETF, Circle ranks as the sixth-largest position, with a 4.6% weighting and a market value of about $306.5 million. It sits behind Tesla, Advanced Micro Devices, CRISPR Therapeutics, Tempus AI and Roku.
In the ARK Next Generation Internet ETF, Circle is the fourth-largest holding, with a 4.58% weighting valued at roughly $82.3 million. In the ARK Blockchain and Fintech Innovation ETF, Circle is the second-largest holding, with a 6.66% weighting worth about $56 million.
Ark’s latest purchase shows continued exposure to stablecoin infrastructure through Circle, even after the stock’s recent rally. Circle is the issuer of USDC, one of the largest dollar-backed stablecoins by supply and on-chain transaction activity.
The company’s role in payments, tokenized finance and blockchain settlement has made it a closely watched public-market proxy for stablecoin adoption.
Circle Reports Revenue Growth and Lower Net Income
Circle reported $694 million in total revenue for the first quarter of 2026, up 20% from a year earlier. Net income fell 15% year-over-year to $55 million.
The company’s revenue missed some analyst estimates, with Bernstein saying the figure came in about 4% below expectations. The shortfall was tied mainly to lower reserve income as interest rates weakened during the quarter.
Adjusted EBITDA reached $151 million, about 10% above consensus estimates, according to Bernstein analysts led by Gautam Chhugani. The firm said cost discipline and operating performance helped offset pressure from lower reserve income.
USDC in circulation rose 28% year-over-year to $77 billion at quarter-end. On-chain USDC transaction volume increased 263% year-over-year to $21.5 trillion during the quarter.
Circle’s on-platform USDC balances reached $13.7 billion, equal to 18% of total supply. Bernstein said the increase came even as the broader crypto market had declined sharply since October 2025.
Circle also reported progress in its payments network. Bernstein said Circle Payments Network annualized transaction volume approached $10 billion, with 136 financial institutions onboarded as of May 7.
Bernstein Keeps Outperform Rating on Circle
Bernstein reiterated an Outperform rating on Circle and maintained a $190 price target after the earnings release. Based on Monday’s closing price of $131.76, that target implies about 44% upside.
The brokerage pointed to Circle’s $222 million ARC token presale as one factor supporting the outlook. The presale valued Arc, Circle’s new institutional blockchain, at a fully diluted value of $3 billion. Investors included a16z crypto, BlackRock, Apollo and Intercontinental Exchange.
Bernstein said the ARC token presale provides a buffer against weaker reserve income. The firm noted that Circle’s current guidance excludes the financial effect of the token presale, which is expected to be recognized as other revenue when tokens are delivered.
Arc is expected to launch on mainnet after a testnet phase that processed more than 244 million cumulative transactions and supported 1.6 million unique wallets. Bernstein also pointed to Arc’s x402 open standard for machine-to-machine micropayments as a potential growth channel tied to AI software agents.
The analysts said USDC accounts for more than 99% of all x402-based agentic payments settled globally.
Circle’s 2026 guidance remains unchanged. The company expects a 40% compound annual growth rate for USDC supply and non-float revenue between $150 million and $170 million.
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