Cathie Wood and her team at Ark Invest busily traded stocks at the start of the final five-day trading week of 2025 that began Dec. 15. Their buys added to a few existing holdings in Ark's high-profile exchange-traded funds (ETFs).
Among the positions that got a top-up were those of stablecoin company Circle Internet Group (CRCL +1.21%), cryptocurrency exchange Bullish (BLSH 2.50%), and healthcare tech stock Schrödinger (SDGR 4.48%). Here's a glance at all three companies.
Image source: Getty Images.
1. Circle Internet Group
Circle is the company that developed USDC, the No. 2 U.S. dollar stablecoin in terms of market cap behind Tether. Circle's business is built around USDC, and in contrast to Tether, its developer has committed itself to backing every USDC with liquid assets (mainly U.S. Treasury bonds, as well as cash and cash equivalents).
The idea here is to build and establish USDC as a go-to dollar stablecoin, and so far it seems to be working. The token's market cap has more than tripled during the past two years, rising from about $25 billion to its current $78.3 billion.
For a company helping vault the world into the digital financial future, Circle's current business model is actually quite straightforward. By far the bulk of its revenue -- 96% -- comes from the interest earned on its Treasuries and other interest-bearing liquid assets. The company managed to boost its top line by 66% year over year to $740 million in its most recently reported quarter.
In a way, Circle's business model at present is simple -- the bulk of the revenue from those USDC purchases is channeled into interest-generating assets, such as the Treasuries.
I don't find this to be an overly compelling business profile. Since Circle is a company centered on its stablecoin, future success will depend on consumer adoption. We're still in the early days of the digital finance revolution, though, so I wouldn't place a bet on this company being the future U.S. stablecoin incumbent. Truer believers in USDC should by all means consider investing in it, though.
NYSE: CRCL
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2. Bullish
Like Circle, Bullish is a cryptocurrency-related stock. The company operates a cryptocurrency exchange, led by former New York Stock Exchange (NYSE) President Tom Farley and backed by high-profile tech investor Peter Thiel's Founders Fund and Thiel Capital. So it's associated with powerful figures from both the traditional and state-of-the-art financial worlds.
Bullish's aim is to distinguish itself from the pool of other crypto exchange operators (including Coinbase, another recent Cathie Wood favorite). It does this by focusing on institutional clients and advanced securities traders. It also owns CoinDesk, which, in addition to operating a crypto news site, draws revenue from offerings such as events and index-data products.
Bullish hasn't wasted much time establishing its presence. It launched spot crypto trading at the beginning of October, after its August initial public offering (which, by the way, Ark invested in).
The company is growing, with its adjusted revenue rising 72% year over year to $76.5 million in its third quarter. Thanks largely to a significant change in the fair value of its investment in financial assets, it reported net income of nearly $18.5 million, compared to a year-ago net loss of $67 million.
I like how Bullish is attempting to set itself apart, but I think it will have to either boost its take from those information services or find promising new revenue streams. As it is, the company is vulnerable to the often dramatic swings of the broader crypto market, prompting me to think it's no more attractive as an investment than the trendier cryptocurrencies on the scene.
NYSE: BLSH
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3. Schrödinger
Finally we have Schrödinger, the only non-crypto stock in our trio. Don't worry, though; the company is just as cutting-edge as the other stock plays Wood tends to favor.
The company specializes in drug discovery and materials design. It offers assistance in these areas through its proprietary, physics-based, and artificial intelligence (AI)-enhanced software platform. Schrödinger both licenses this (mainly to healthcare companies) and utilizes it for its own research efforts into potentially useful medicines.
This seems to be resonating with the company's target market, as software revenue -- the bulk of its top line -- rose a sturdy 28% year over year in the third quarter to hit almost $41 million. Those drug discovery efforts are producing revenue from upfront payments and the like. They're also forming an upward revenue line, as they brought in $13.5 million, up from $3.4 million in the year-ago period.
NASDAQ: SDGR
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And while Schrödinger is a habitual money-loser, it did narrow its net shortfall to $32.8 million from $38.1 million in the third quarter of 2024. Additionally, it had cash and other highly liquid assets totaling $401 million, providing it with a lengthy runway for now.
This company is packed with potential; it's just a matter of reaching it. That top-line growth number is an encouraging sign that it's traveling in that direction. Another is the scope of its software platform, which, for example, can also be used for materials research in fields like the currently hot aerospace industry. I feel this is a good stock to buy for investors with some tolerance for risk.
