Overview
- Circle and SpaceX have climbed into the top 10 holdings of ARKK.
- SpaceX now makes up 4.73% of the portfolio, while Circle constitutes 3.90%.
- Ark has increased its investments in both companies following their recent earnings reports.
According to a report released on Thursday regarding the holdings of the Ark Innovation ETF (ARKK), SpaceX and Circle are now significant components of Cathie Wood's investment strategy.
SpaceX holds the position of the fifth-largest investment in ARKK, valued at approximately $282 million, representing 4.73% of the total portfolio. Circle is the eighth-largest, with a valuation of around $233 million, making up 3.90% of the fund.
These two firms join a roster that includes Tesla, Coinbase, Robinhood, OpenAI, Bitmine, and Palantir, highlighting Ark's ongoing commitment to sectors such as artificial intelligence, cryptocurrency, fintech, and other tech enterprises.
The latest trading disclosures indicate that Ark has been actively increasing its positions in both SpaceX and Circle since their second-quarter earnings announcements. The firm acquired 181,830 shares of SpaceX across four exchange-traded funds, including ARKK, and purchased 273,343 shares of Circle across ARKK and two additional funds. The total value of these transactions was approximately $20 million for SpaceX and $17.3 million for Circle, based on the companies' closing stock prices.
This development follows the release of second-quarter earnings by both Circle and SpaceX earlier this week.
Circle reported stablecoin revenue and reserve income of $701 million for the second quarter, which is a 7% increase from the previous year. Its adjusted EBITDA also saw an 8% rise to $143 million. The circulation of USDC reached $73.3 billion, up 19%, and the on-chain transaction volume surged by 151% to $14.8 trillion.
In contrast, SpaceX's shares dropped by 13.6% despite the company reporting a staggering 92% increase in quarterly revenue, totaling $7.8 billion. Investors were more concerned about the $18.4 billion in capital expenditures that executives indicated would be allocated towards enhancing AI capabilities.
This news follows a recent rebalancing of Ark's crypto-related assets just a week prior.
In late July, Ark had sold shares in Bitmine, Robinhood, Block, and Bullish, while simultaneously purchasing about $43.5 million in Coinbase and Circle shares, along with $14.5 million in SpaceX shares.