Circle Internet Group Inc. (NYSE: CRCL) shares faced significant pressure, plunging 17% after a coalition of 140 companies launched Open USD, a rival stablecoin designed to split reserve yield with distribution partners. Despite the sell-off, Cathie Wood-led Ark Invest executed a major acquisition of 287,609 shares across its ARK Blockchain & Fintech Innovation ETF (BATS: ARKF), ARK Innovation ETF (BATS: ARKK), and ARK Next Generation Internet ETF (BATS: ARKW). With the closing price at $61.95 on Wednesday, the total transaction value amounted to approximately $17.8 million.

Open USD Threatens Circle's Revenue Model

Circle generates roughly 99% of its revenue from interest earned on USD Coin (CRYPTO: USDC) reserves. Open USD targets this revenue stream by paying yield directly to distribution partners, including Visa Inc., Coinbase Global Inc., and BlackRock Inc. Coinbase, a primary distributor of USDC, now backs a direct rival that pays them a cut of the revenue Circle currently keeps, creating a financial incentive to push Open USD over USDC. Bernstein analysts, however, reaffirmed an outperform rating with a $190 price target, implying 203% upside, arguing that Open USD validates the stablecoin category rather than threatening Circle's position.

Analysts and CEO Defend USDC Position

Circle CEO Jeremy Allaire responded on X, stating USDC controls 80% of all dollar stablecoin transactions on blockchains in Q1 2026, processing nearly $30 trillion, while all other stablecoins combined handled less than 0.5%. Allaire criticized the consortium model as structurally flawed, arguing that large groups coordinate poorly and that giving away reserve income leaves no capital to reinvest in the network. William Blair separately called Open USD "a solution searching for a problem." Bernstein pushed back on concerns regarding Coinbase, noting the exchange earns roughly 50% of USDC’s reserve income under its current deal with Circle, making a full pivot to Open USD financially self-defeating.

Ark Invest Adjusts Portfolio

Alongside the Circle purchase, Ark Invest increased its holdings in Bullish (NYSE: BLSH) by 27,740 shares for roughly $700,000. The firm also reduced its stake in Alibaba Group Holding Ltd (NYSE: BABA), selling 79,632 shares worth approximately $7.81 million. Ark has been steadily trimming its Alibaba position following scrutiny regarding AI model misuse and the company's placement on the Pentagon's 1260H blacklist. Other key trades included selling shares of Roku Inc. and Strata Critical Medical Inc., while buying positions in Alamar Biosciences Inc. and Recursion Pharmaceuticals Inc.

Circle Internet Group, Inc. announced that Jeremy Allaire, Co-Founder, Chairman and Chief Executive Officer, will participate in a fireside chat at VivaTech on Wednesday, June 17, 2026, at 5:00 am ET. The discussion, titled "Digital Money, Real Power: The New Architecture of Finance," will explore the evolving landscape of digital finance and blockchain infrastructure.

The live audio webcast of the session will be available on Circle's Investor Relations website at www.circle.com/investors . For those unable to listen to the live webcast, a replay will be available on the website shortly after the event. Investors with questions regarding access to the webcast can contact Circle Investor Relations via email at investors@circle.com .

Disclosure Channels

Circle uses its Investor Relations website, blog, press releases, public conference calls, webcasts, X feed, and LinkedIn page to disclose material nonpublic information and comply with its obligations under Regulation FD. The company advises investors to monitor these platforms in addition to its filings with the Securities and Exchange Commission (SEC).

About Circle Internet Group, Inc.

Circle (NYSE: CRCL) is a global internet financial platform company focused on building a more open, global economy through programmable blockchain infrastructure, digital assets, and payment applications. Its platform includes the USDC stablecoin network, Circle Payments Network for global money movement, and Arc, an enterprise-grade blockchain designed to serve as the Economic OS for the internet. Enterprises, financial institutions, and developers utilize Circle to power trusted, internet-scale financial innovation.