Cathie Wood bets $40 million on Block (XYZ) and Circle (CRCL)... Why now?

▲ Block (XYZ), Circle (CRCL)/AI generated image

Cathie Wood has invested approximately $40 million in Block Inc. (XYZ) and Circle Internet Group (CRCL).

According to the cryptocurrency media outlet Coingape on September 1 (local time), ARK Invest, led by Wood, purchased 456,059 shares of Block. Applying Monday's closing price of $82.02, the transaction is worth approximately $37.4 million. The purchased shares were distributed among the ARK Innovation ETF (ARKK), ARK Next Generation Internet ETF (ARKW), and ARK Blockchain and Fintech Innovation ETF (ARKF). Block's stock price fell by 1.85% on that day.

ARK Invest also additionally purchased 35,192 shares of Circle. Based on Monday's closing price of $95.55, this amounts to approximately $3.36 million. Circle's stock price rose by 9.65% on that day. ARK Invest had previously bought 220,012 shares for approximately $13.9 million in July when Circle's stock price fell below $64. In the same month, an additional 109,129 shares were purchased for approximately $6.83 million.

Purchases of Block shares have also continued. ARK Invest bought 236,759 shares of Block for approximately $17.2 million in June and added 19,029 shares for approximately $1.52 million in July. Block's gross profit in the second quarter increased by 25% year-over-year to $3.17 billion. Square's gross profit was $1.16 billion, and Cash App's was $1.97 billion. Diluted earnings per share were $1.02.

Block raised its gross profit forecast for 2026 to $12.51 billion and its adjusted operating income forecast to $3.47 billion. In June, it additionally purchased 85 BTC of Bitcoin (BTC), increasing its holdings to 9,117 BTC. Circle recorded second-quarter revenue of $701 million, and USDC circulation was reported at $73.3 billion. Coingape reported that Bernstein issued an 'Outperform' rating for Circle with a price target of $140.

[Key Article Summary]

-ARK Invest, led by Cathie Wood, invested approximately $40 million by purchasing 456,059 shares of Block and 35,192 shares of Circle.

-The Block purchase amounted to approximately $37.4 million, and Circle to approximately $3.36 million. ARK Invest had consistently bought shares of both stocks in June and July.

-Block's gross profit increased by 25% in the second quarter, while Circle recorded second-quarter revenue of $701 million and USDC circulation of $73.3 billion.

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