Ark’s Contrarian August Play: Cathie Wood Loads Up on Circle and SpaceX Amid Post-Earnings Volatility

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By: Oliver Hawthorne

The split between investor skittishness and Ark’s aggressive buys is impossible to ignore. Most traders dumped or avoided Circle and SpaceX right after their Q2 reports. But Ark dropped nearly $37 million across multiple ETFs in a single session.

On August 5, Ark bought 273,343 Circle shares across ARKK, ARKW, and ARKF. The total cost was $17.3 million at Circle’s $63.28 closing price. Circle’s stock rose just 0.05% that day. Circle now ranks as ARKK’s ninth-largest holding, at 3.68% of the portfolio. For SpaceX, Ark picked up 181,830 shares across ARKK, ARKQ, ARKW, and ARKX. The purchase cost $19.7 million at SpaceX’s $108.27 close, which was down 13.61% that session. SpaceX stock still trades below its $135 June IPO price. Circle’s Q2 results had mixed signals. Revenue and reserve income hit $701 million, up 7% year over year, but missed Wall Street’s $713 million estimate. Adjusted EBITDA rose 8% to $143 million, with net income from continuing operations at $48 million. USDC circulation climbed 19% to $73.3 billion, while onchain transaction volume jumped 151% to $14.8 trillion. Circle plans to launch its Arc Layer-1 blockchain mainnet on September 16, with founding validators including BlackRock, DTCC, Visa, and Mastercard. Ark has added to its Circle position multiple times this year, with trades in March, May, July, and now August. SpaceX’s Q2 report beat analyst expectations. Revenue hit $7.8 billion, up 92% year over year, beating the $6.8 billion estimate. Net loss narrowed to $541 million, while adjusted EBITDA rose 191% to $3.5 billion. Investors focused on the $18.4 billion in quarterly capital spending, with $16 billion going toward AI computing infrastructure. The first insider lock-up tranche expires August 6, letting restricted shares enter the market. SpaceX also reported Starlink subscribers doubled to 12 million, and kept its target of a $100 billion annualized revenue run rate by December.

Ark’s bet here is rooted in long-term industry shifts, not short-term quarterly misses. For Circle, the missed revenue target is a blip next to the 19% growth in USDC circulation. The upcoming Arc Layer-1 launch is a bigger catalyst. The lineup of founding validators, including BlackRock and Visa, signals that Circle is building regulated stablecoin infrastructure for institutional finance. Ark has been building this position all year. Their repeated buys show consistent conviction in Circle’s trajectory. For SpaceX, the stock’s drop below its IPO price ignores big operational wins. Those wins include 92% year-over-year revenue growth, doubled Starlink subscribers, and the $100 billion annual run rate target. The $16 billion spent on AI computing infrastructure also signals a bet on SpaceX’s expansion beyond satellite services. The upcoming insider lock-up expiration only adds to the contrarian nature of the bet. Ark is buying ahead of expected supply increases that other investors are avoiding.

Author bio: Oliver Hawthorne, Principal Correspondent permanently stationed at an international technology review covering public tech and crypto markets.