Cathie Wood defends Circle investment despite stock decline

Cathie Wood, CEO of ARK Invest, has defended her firm's significant investment in Circle Internet Group, Inc. (CRCL) despite the stock's substantial decline over the past year. Wood characterized the company as a “disrupter” that traditional financial analysts, accustomed to the long-term success of Visa and Mastercard, may fail to understand.

While Circle's stock has seen a decline of between 33% and 42% over the last year, Wood argued that this performance illustrates the “inefficiency of public equity markets in the short term.” ARK Invest maintains a large position in the company, with holdings totaling approximately $345.71 million as of late August 2026.

Market analysts have noted that Circle's investment thesis is evolving. Beyond being a play on interest rates, the company has recently secured a federal trust bank charter, returned to profitability in the second quarter, and seen a doubling of its transaction revenue.