Cathie Wood bets on 'disrupter' stock with bullish analyst call

Cathie Wood bets on 'disrupter' stock with bullish analyst call

Anand Sinha

Wed, August 26, 2026 at 8:15 PM GMT+3 4 min read

Veteran investor Cathie Wood recently doubled down on Circle Internet Group (NYSE: CRCL) despite a sharp decline in its stock price over the last year.

Circle is a crypto company popular for its USDC stablecoin. Pegged 1:1 to the U.S. dollar, USDC is the second-largest stablecoin after Tether's USDT. Such coins are also called "digital dollars" in crypto parlance.

As per the onchain analytics platform DeFiLlama, USDC has a market cap of $73.88 billion, which accounts for 24.36% of the total stablecoin market.

Related: Explained: What is a stablecoin?

Analyst explains Circle's growth

On Aug. 19, analyst Alex Obchakevich compared the performance of Circle against that of Visa (NYSE: V) and Mastercard (NYSE: MA), the two payment giants.

Over the last twelve months, Visa is up 5%, Mastercard is up 1%, and Circle is down 42% but has gained 30% in a month, he noted as of Aug. 19.

"Read quickly, it looks like noise. Read slowly, it's the market changing its mind about who actually earns money on stablecoins."

When users pay a premium for distribution and avoid stablecoin issuers, Visa and Mastercard rule because they own the rails and the merchants and have roughly 8 billion cards.

In contrast, Circle owns a stablecoin with an interest rate. When these rates fall, Circle bleeds, he explained what he calls an "old thesis."

But Circle is no longer a "pure rates trade" as it has received regulatory approval to operate as a federally regulated trust bank and has turned profitable in the second quarter with transaction revenue doubling, he pointed out.

The recent Circle rally "isn't a discovery, it's a correction of an overdone funeral," Obchakevich remarked. Though the stock is still down in a year and Wall Street analysts are deeply divided over its price target, the "business underneath has changed shape," he added.

He also reminded the crypto community about both Visa and Mastercard joining the open standard consortium behind the Open USD (OUSD) stablecoin last month. Both these companies have also turned into stablecoin issuers now, he underlined.

It isn't without any reason that these payment giants are behind the consortium. After all, last year saw stablecoin transfers worth $33 trillion, he added.

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Wood expects Circle to be 'prime beneficiary' of tech disruption

The ARK Invest CEO didn't respond immediately to Obchakevich's post but shared her outlook on Aug. 23. Though the Circle stock has appreciated 84% since its initial public offering (IPO), the one-year chart shared by Obchakevich illustrates the inefficiency of public equity markets in the short term, she claimed.

Circle priced its IPO at $31 per share, but when it made its Wall Street debut on June 5 last year, the stock opened at $69, up about 123% from its IPO level. With the Circle stock closing at $87.98 on Aug. 21, it has gained 184% since the IPO. Wood's stated 84% figure does not match Circle's IPO-to-Aug. 21 gain. The stock's 184% appreciation suggests the 84% figure in her post may have been a typo.

Further, Wood went on to say that analysts have built their track records off Visa and Mastercard predictions, but they can't fathom "the disrupter" Circle.

It's technology—not what these analysts do—which is now "disrupting" the traditional world order and Circle should be a "prime beneficiary," the veteran investor argued.

ARK Invest regularly buys crypto stocks, with Circle shares among its major holdings.

Bernstein reiterates Circle price target of $140

As reported earlier, Bernstein analysts reiterated a price target of $140 for the Circle stock on Aug. 24.

Analysts, led by Gautam Chhugani, argued that Circle's growth can continue even if the CLARITY Act doesn't pass in September. They made the bullish bet due to stablecoin payments, blockchain-based capital markets, tokenized assets, and agent payments being the crypto firm's demand points.

Bernstein also disclosed that Chhugani holds long positions in several cryptocurrencies and the brokerage or its affiliates have maintained investment banking and other business relationships with Circle over the past 12 months.

The Circle stock closed at $92.02 on Aug. 25, up more than 47% in a month.

Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are highly volatile and risky. Always conduct your own research before making any investment decisions.

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This story was originally published by TheStreet on Aug 26, 2026, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.