Circle Stock Sees Contrarian Buying from Cathie Wood's ARK Funds Amid Market Decline

Circle Internet Group, the company behind the popular stablecoin USDC, has been weathering the storm of the declining cryptocurrency market. Despite its stock price plummeting by over 66% from its all-time high, Cathie Wood's ARK funds have continued to buy into the company.

The ARK funds first invested in Circle in Q2 2025, with a total holding of 4.51 million shares worth approximately $408 million. This represents around 2.72% of their equity portfolio and makes it their 10th-largest position. Wood's estimated cost basis for the shares is around $98.60 per share, resulting in a paper loss of about 8.1% given the current price.

Circle's stablecoin, USDC, has seen significant growth in circulation and on-chain transaction volume. In its first-quarter report, Circle reported that USDC in circulation rose by 28% year-over-year to $77 billion, while on-chain transaction volume jumped by 263% to $21.5 trillion. The company's revenue and reserve income came in at $694 million, up 20%, with adjusted EBITDA rising 24% to $151 million.

Analysts predict that Circle's stock price could surge if it reaches a reasonable valuation multiple. With a forecasted revenue rise from $2.75 billion in 2025 to $7.51 billion in 2029, and adjusted earnings per share expanding from $2.35 to $7.95, the stock could potentially reach a price of around $146 based on current estimates.