ARK Invest sells $16M in AMD shares and invests $34M in Bullish and Circle

Source: Yellow Original Title: ARK Invest by Cathie Wood sells $16M in AMD shares, invests $34M in the cryptocurrency plays Circle and Bullish

Original Link: ARK Invest executed a dramatic portfolio shift, selling over $16 million in shares of Advanced Micro Devices while aggressively accumulating positions in cryptocurrency-related securities. The investment firm allocated over $34 million to Bullish and Circle Internet Group, indicating an increasingly deep conviction in the infrastructure of digital assets even as cryptocurrency prices remain under pressure.

The operations represent the culmination of a weeks-long accumulation campaign that has seen Wood direct more than $40 million towards publicly traded crypto companies since early November. The shift of semiconductor stocks towards stablecoin issuers and digital asset exchanges marks a notable change in the thesis of the growth-focused investment firm.

Aggressive Bullish Buy

The largest individual transaction of ARK was the acquisition of 463,598 shares of Bullish, valued at approximately $17.5 million. The purchase was distributed among the flagship ETFs Innovation (ARKK), Next Generation Internet (ARKW), and Fintech Innovation (ARKF), demonstrating broad conviction across the firm's funds.

The synchronization was remarkable. Bullish had just announced third-quarter results that same morning, marking its first profit since going public. The company reported a net income of $18.5 million, or 10 cents per share, compared to a loss of $67.3 million in the same period last year. Adjusted revenues of $76.5 million exceeded analysts' expectations of $72.9 million.

Despite the solid results, the shares fell by as much as 10% during the session, reaching an intraday low of $34.24 before closing down approximately 5% at $35.95. The drop reflects a broader weakness in cryptocurrency-linked stocks rather than company-specific concerns, with the sector experiencing a tough period amid the pullback of Bitcoin from recent highs.

Bullish, which went public on the NYSE in August 2025, raised $1.21 billion in a debut that saw shares open at $90.45 before briefly touching $118. The stock has since retreated substantially. The company, backed by PayPal co-founder Peter Thiel, operates a regulated institutional-grade cryptocurrency exchange and also owns the crypto news site CoinDesk, which it acquired in 2023. Former New York Stock Exchange president Tom Farley serves as CEO.

ARK had expressed interest in purchasing up to $200 million in shares during the IPO process alongside other institutional investors, indicating an early conviction in the platform's potential.

Circle Internet: Buying the Dip

The second major crypto purchase by ARK was 216,019 shares of Circle Internet Group, valued at approximately $16.5 million. The acquisition represents a continuation of the aggressive buying that has characterized the last week.

The stablecoin issuer reported third quarter results showing net income rising to $214 million, a 202% year-over-year increase. Earnings per share of 64 cents exceeded expectations of 22 cents. Total revenue and reserve income more than doubled to $740 million, driven by growth in USDC circulation to $73.7 billion, more than double the previous year.

However, the shares have fallen sharply since the report, sliding as concerns grow about the impact of possible interest rate cuts on Circle's revenues. The company derives most of its revenue from interest on the reserves backing USDC, making it very sensitive to rate movements. The “96 basis point drop in the return rate on reserves” during the quarter highlighted this vulnerability.

ARK began buying the dip immediately after the results-driven drop. In the following session, the firm purchased $30.5 million in Circle shares while the shares fell 12% in a single session. The buying continued in the following days, with the firm adding to its position in multiple ETFs.

Circle went public in June 2025 at $31 per share, with the shares immediately rising to $69 at the opening and reaching a peak close to $300 in three weeks. The shares have since pulled back to around $76, still representing a gain of 145% since the IPO price but a sharp decline from the highs.

The analyst sentiment remains divided. Some analysts have upgraded the rating to Outperform with price targets between $110 and $230, citing the company's fundamental strength. However, others maintain more conservative ratings, arguing that the stock remains overvalued relative to the fundamentals.

AMD Sale: A Semiconductor Withdrawal

On the other side of the ledger, ARK sold 72,215 shares of Advanced Micro Devices valued at approximately $16.6 million. The sale was distributed across ARKK, ARKW, and ARKF, marking a continuation of the firm's recent trend of reducing exposure to semiconductors.

AMD's shares fell 2.93% during the session, closing at $223.55, amid broader sector concerns. The sell-off comes despite AMD's ongoing efforts to capitalize on the AI chip market, including a recent achievement to power France's supercomputer.

Wood's relationship with AMD has been cyclical. ARK aggressively accumulated shares during late April and May 2025, adding approximately 800,000 shares as the value benefited from demand for AI-driven data centers. However, the firm has been trimming the position in recent weeks, reallocating capital towards crypto infrastructure plays.

The rotation reflects Wood's evolutionary thesis on where disruptive growth opportunities lie. While AI chips remain a secular trend, ARK seems increasingly focused on what it sees as undervalued opportunities in digital asset infrastructure, particularly as regulatory clarity improves and institutional adoption accelerates.

BitMine: Doubling Down on Ethereum's Treasury Strategy

ARK also increased its stake in BitMine Immersion Technologies, purchasing 260,651 shares valued at approximately $8.4 million. This adds to substantial purchases made earlier in the week, reflecting a bullish conviction in the company's aggressive Ethereum accumulation strategy.

BitMine has positioned itself as the largest treasury company of Ethereum in the world, following a similar plan to the Bitcoin strategy of another digital asset investment firm. The company announced total holdings of $11.8 billion, including 3.56 million ETH, which represent approximately 2.9% of the total supply. The company has stated a goal of acquiring 5% of the Ethereum network.

Led by Thomas “Tom” Lee of Fundstrat as president, BitMine counts among its institutional sponsors Cathie Wood of ARK, Bill Miller III, Founders Fund, Pantera, and Galaxy Digital. The stock has become one of the most traded in the U.S. markets, with an average daily dollar volume of $1.4 billion.

Additional Operations: Technical Position Trimming

The sale activity of ARK extended beyond AMD. The firm unloaded 54,280 shares of Teradyne for approximately $8.9 million and reduced holdings in Natera by 40,676 shares, valued at approximately $8.7 million. These sales reflect a broader reallocation of resources within the portfolio.

The firm also continued divesting from social media, selling shares of several companies in the sector. ARK has consistently sold positions in social media companies over the past week, following a pattern of reducing exposure to this segment while building positions in digital asset infrastructure.

On the buying side, smaller acquisitions included shares of Klarna Group valued at approximately $205,000 and shares of Shopify for approximately $2.1 million.

Conclusions

The operations underscore ARK Invest's aggressive positioning in digital asset infrastructure at a time when many crypto stocks are under pressure. Bitcoin has fallen sharply in recent weeks, dragging related values across the sector. However, Wood seems to be treating the weakness as a buying opportunity.

In its Big Ideas 2025 report, Wood reiterated a price target for Bitcoin between $1.5 million and $2.4 million by 2030, calling digital assets “the most important monetary innovation since the internet.” The firm's recent purchases suggest a similar conviction in the opportunities related to Ethereum and stablecoin infrastructure.

In early November, ARK maintained significant estimated positions in Bullish, representing an important portion of the firm's overall portfolio. Other regulated cryptocurrency platforms continue to be significant holdings, along with digital asset treasury companies.

The semiconductor shift towards crypto plays marks a notable tactical adjustment. While demand for AI chips remains strong, Wood seems increasingly convinced that the next wave of disruptive growth opportunities will come from the infrastructure that enables the adoption of digital assets, including stablecoin issuers, regulated exchanges, and treasury companies that accumulate tokens for institutional exposure.

Whether this bet materializes will depend on whether favorable regulatory winds materialize and whether institutional adoption accelerates as Wood anticipates. For now, ARK is investing significant capital behind that thesis.