Cathie Wood is still buying the dip. On Monday, Ark Invest added roughly $37.4 million worth of Block Inc shares even as the fintech stock slid, extending a pattern of Ark Invest stock purchases that has run through most of 2026. The same day, the asset manager also topped up its position in stablecoin issuer Circle Internet Group, a smaller but far more eye-catching trade given how sharply Circle’s shares jumped.
Summary
Key takeaways
- Ark Invest bought 456,059 shares of Block Inc worth about $37.4 million, spread across three ETFs.
- Block’s stock fell 1.85% to close at $82.02 on the day of the purchase.
- Ark also bought 35,192 shares of Circle Internet Group worth $3.36 million, as CRCL surged 9.65% to $95.55.
- Block raised its full-year gross profit forecast to $12.51 billion, implying about 21% growth for 2026.
- Bernstein kept a $140 price target on Circle, citing stablecoin payment growth and blockchain capital markets activity.
Ark Invest’s Strategic Stock Purchases in Block Inc and Circle
The trades mark another round of Ark Invest stock purchases in two companies the firm has repeatedly targeted this year, buying more shares whenever prices dip rather than waiting for a rebound. On Monday, that pattern showed up again: Ark bought into weakness in Block while riding a rally in Circle, on the very same trading day.
Allocation Across Multiple ETFs
The Block purchase of 456,059 shares was split across three actively managed funds: the Ark Innovation ETF, the Ark Next Generation Internet ETF, and the Ark Blockchain and Fintech Innovation ETF. Ark applies an internal portfolio rule that caps any single holding at no more than 10% of a fund’s total assets, a constraint that forces the firm to rebalance and buy or sell shares as prices move rather than simply letting winners run unchecked.
This wasn’t an isolated move. According to crypto.news, Ark bought 236,759 Block shares worth about $17.2 million in June, then added another 19,029 shares worth roughly $1.52 million in July. Circle has seen a similar drumbeat of purchases, including 220,012 shares worth about $13.9 million in July when CRCL fell below $64, and 109,129 shares worth roughly $6.83 million later that month after Circle received a limited-purpose trust charter from the New York Department of Financial Services.
Stock Price Movements on Purchase Day
Block’s stock fell 1.85% on Monday to close at $82.02, the kind of pullback Ark has repeatedly used as a buying opportunity throughout 2026. Circle told a very different story: shares jumped 9.65% to close at $95.55, clawing back a 7.5% drop from the previous Friday. Zoomed out, Circle’s stock is up 52.6% over the past month, a run that has made it one of the more volatile names in Ark’s crypto-adjacent basket.
Financial Performance and Outlook for Block Inc
Block’s improving numbers help explain why Ark keeps buying even as the stock wobbles day to day. The company posted stronger-than-expected second-quarter results in August, with gross profit rising 25% year over year to $3.17 billion, and management responded by raising guidance for the rest of the year.
Raised Full-Year Profit Forecast
Block lifted its full-year gross profit forecast to $12.51 billion, up from a previous estimate of $12.33 billion, representing expected growth of about 21% compared with 2025’s roughly 19% pace. Adjusted operating income is projected projected annual revenue of $3.47 billion alongside a 28% profit margin, with adjusted diluted earnings per share anticipated to expected to climb 70%. Cash App remained the biggest single driver, contributing $1.97 billion of gross profit in the quarter, up 31% year over year, while Square added $1.16 billion, up 13%.
Revenue and Cost Considerations
Why does this matter for investors? Beating revenue expectations is one thing, but analysts at Mizuho have flagged rising operating expenses as a real concern, even after Block’s workforce cuts. The bank estimated adjusted operating expenses would climb from $4.48 billion in the first half of 2026 to $4.56 billion in the second half. Mizuho kept an Outperform rating but set a more conservative $100 price target, questioning whether Block would need to spend more to keep growing Cash App’s user base.
Shift to AI Operations and Staff Reduction
Block cut about 40% of its staff in February as part of a broader pivot toward an AI-focused operation. The company has said agentic AI tools now help write and review nearly all production code changes, with one internal system, Builderbot, already handling around 15% of code changes earlier in the year and processing more than 200,000 operations daily. Block has also kept building its Bitcoin treasury, adding 85 BTC in August to bring its holdings to 9,117 BTC, shortly after joining the S&P 500 in July.
Growth Drivers and Price Targets for Circle Internet Group
Circle’s rally isn’t happening in a vacuum — it’s tied to a broader narrative around stablecoin adoption that analysts believe is just getting started. Bernstein has kept an Outperform rating on the stock along with a $140 price target, pointing to several tailwinds supporting the outlook.
Bernstein’s Price Target and Growth Analysis
Bernstein’s bullish case rests on shifts in the macro regime, growth in real-world blockchain capital markets, and rising stablecoin payment adoption, including early use of stablecoins for autonomous agentic payments. The firm noted that USDC supply grew by about $1.7 billion in the week before its report, following nearly six months of largely flat growth, and that stablecoin transaction volume on an annualized basis was approximately $17 trillion as of July, up from about $11 trillion in 2025.
Stablecoin Adoption and Market Expansion
Bernstein estimates Circle’s stablecoin now accounts for roughly 80% of decentralized exchange trading and finance volumes, with more than 900 paid services using its Agent Stack and 99.3% of x402 agent payment volume settling in USDC. Circle reported $701 million in second-quarter revenue, up 7% year over year, with USDC circulation reaching $73.3 billion by the end of the period. For a business built on reserve income, that kind of circulation growth directly feeds the bottom line — which is part of why the stock’s 52.6% one-month gain hasn’t scared off buyers like Ark.
Taken together, the two trades show Ark Invest sticking to a consistent playbook: buy fintech and crypto-adjacent names on weakness, trim or hold when they run hot, and let its 10% concentration rule do the rebalancing. Whether that strategy keeps paying off will depend heavily on whether Block’s cost pressures stay contained and whether stablecoin adoption keeps expanding at the pace Bernstein is projecting.
FAQ
How many Block Inc shares did Ark Invest purchase and what was their value?
Ark Invest purchased 456,059 shares of Block Inc worth about $37.4 million.
Which Ark ETFs were involved in the Block Inc stock purchase?
The purchase was split across the Ark Innovation ETF, the Ark Next Generation Internet ETF, and the Ark Blockchain and Fintech Innovation ETF.
What was the market reaction to Ark Invest’s purchase on the day for Block Inc and Circle stocks?
Block Inc’s stock fell 1.85% to close at $82.02, while Circle’s stock rose 9.65% to close at $95.55.
What is the financial outlook for Block Inc as indicated in the article?
Block raised its full-year profit forecast to $12.5 billion, implying about 21% growth.
Article produced with the assistance of artificial intelligence and reviewed by the editorial team.
