Ark Invest purchases $37 million in Block stock and takes stake in Circle
Ark Invest increased its exposure to digital payment and stablecoin infrastructure by acquiring tens of millions in Block and Circle shares following strong quarterly earnings and aggressive corporate restructuring.
Ark Invest purchased approximately $37.4 million in Block shares on Monday, distributing the 456,059 acquired stocks across three of its actively managed exchange-traded funds. The firm also allocated $3.36 million to purchase 35,192 shares of Circle Internet Group through its dedicated fintech vehicle.
The Block acquisition, trading under the ticker XYZ, allocated 191,732 shares worth about $15.7 million to the flagship ARK Innovation ETF, 88,065 shares valued at roughly $7.2 million to the ARK Next Generation Internet ETF, and 176,262 shares worth about $14.5 million to the ARK Fintech Innovation ETF. These purchases occurred as Block shares closed down 3.23% at $80.20 on Monday, despite the company recently raising its forward guidance.
Block reported second-quarter gross profit of $3.17 billion, representing a 25% increase from the previous year, alongside $447 million in operating income and $864 million in adjusted operating income. The company raised its 2026 gross-profit forecast to $12.51 billion, which would represent 21% annual growth according to its shareholder letter.
The Jack Dorsey-led company attributed part of its operational efficiency to artificial intelligence, which it utilized to write and review nearly all production code changes in June. These financial results follow a severe February restructuring that reduced the workforce of the business by more than 40%.
The headcount at the company, originally founded as Square Inc in 2009, dropped from over 10,000 employees to fewer than 6,000. The business continues to operate the Square merchant platform, the Cash App financial application, and its Bitcoin mining hardware division.
Ark’s fintech fund simultaneously acquired a stake in Circle, the issuer of the USDC stablecoin. Circle shares closed at $95.55 on Monday, marking a 9.65% daily gain as the asset manager expands its footprint in digital asset infrastructure.
On the same trading day, Ark sold shares in Palantir, Shopify, Roblox, AMD, and Tempus AI. The firm did not state whether the proceeds from those sales financed its new positions in Block and Circle, leaving the broader portfolio rebalancing strategy unclear to market observers.
