Cathie Wood's Ark Invest Boosts Stake in SpaceX and Circle

Ark Invest Expands Investments in SpaceX and Circle

Cathie Wood's Ark Invest has significantly increased its stakes in both SpaceX and Circle, positioning them among the top 10 holdings of the Ark Innovation ETF (ARKK). The latest disclosures reveal that SpaceX now accounts for 4.73% of the portfolio, valued at approximately $282 million, while Circle represents 3.90%, worth about $233 million.

Following their recent earnings reports, Ark has actively boosted its investments in these firms. The company purchased a total of 181,830 shares of SpaceX across four funds and 273,343 shares of Circle, which collectively totaled around $20 million for SpaceX and $17.3 million for Circle, based on the latest stock prices.

SpaceX ranks as the fifth-largest holding in ARKK, while Circle is the eighth. Their inclusion reflects Ark's continued focus on cutting-edge sectors, including artificial intelligence, cryptocurrency, and fintech, joining other notable investments like Tesla and Coinbase.

Both companies recently released their second-quarter earnings, with Circle reporting a stablecoin revenue and reserve income of $701 million, marking a 7% year-over-year increase. On the other hand, SpaceX experienced a 13.6% decline in share price despite posting a remarkable 92% revenue growth, totaling $7.8 billion. Investor concerns centered around significant capital expenditures aimed at enhancing AI capabilities, projected at $18.4 billion.

This strategic move follows a recent rebalancing of Ark's crypto-related holdings, where the firm sold shares in several companies while acquiring substantial investments in Coinbase and Circle, along with SpaceX shares valued at $14.5 million.