Hedge Funds Sell Palantir and Buy Circle Internet Stock

TLDR

• Millennium Management and D.E. Shaw sold millions of Palantir shares while adding Circle Internet Group stock in Q3 2025
• Circle stock fell 77% from $299 peak to $69, matching its June IPO price despite beating Q3 earnings estimates
• Analysts project Circle could reach $243-$280 per share, representing potential gains of 250-305%
• The stablecoin market currently worth $310 billion could grow to $2-4 trillion, benefiting Circle’s USDC token
• Cathie Wood’s Ark Invest bought $3.1 million in Circle shares, viewing the price drop as a buying opportunity

Two billionaire-run hedge funds made the same move during the third quarter of 2025. They sold major stakes in Palantir Technologies and purchased shares of Circle Internet Group. The trades happened as Circle’s stock price returned to its initial public offering levels.

Circle Internet Group, CRCL

Millennium Management, led by Israel Englander, sold 4.6 million Palantir shares. This reduced the fund’s position by 91%. The hedge fund added 500 Circle shares, increasing that stake by 3%.

D.E. Shaw & Co., managed by David Shaw, sold 6.4 million Palantir shares. The sale cut its position by 41%. The fund opened a new position with 33,100 Circle shares.

Michael Burry also took a bearish stance on Palantir. The investor famous for predicting the 2008 financial crisis now holds Palantir put options worth two-thirds of his $1.4 billion portfolio.

Palantir Valuation Concerns Drive Selling

Palantir currently trades at 102 times sales. This makes it the most expensive stock in the S&P 500 index. AppLovin ranks second at 32 times sales.

The company posted strong third-quarter results. Revenue grew 63% to $1.1 billion. Non-GAAP net income jumped 110% to $0.21 per diluted share. Management raised full-year guidance to 53% revenue growth for 2025.

Despite these results, Palantir CEO Alex Karp has sold over $2 billion in stock during the past two years. The high valuation multiple leaves little room for future price appreciation according to market analysts.

Circle Stock Drops to IPO Levels

Circle Internet Group closed at $69.72 on November 19. This price sits just above the $69 opening price from its June IPO. The stock peaked at $298.99 during the summer before falling 77%.

Trading continued lower on November 20 when shares hit $66.38. The decline came despite strong financial performance in the third quarter.

Circle reported $740 million in revenue and $214 million in net income for Q3. Both numbers exceeded Wall Street expectations. The company warned that lower Federal Reserve interest rates could reduce returns on its reserve holdings.

The firm’s reserve yield fell 96 basis points to 4.15% in the third quarter. Circle holds its reserves primarily in short-term U.S. Treasury bills.

Analysts See Significant Upside Potential

Wall Street analysts maintain bullish outlooks on Circle despite the stock decline. Citigroup analyst Peter Christiansen set a price target of $243 per share. Canaccord Genuity’s Joseph Vafi projects $247 per share. Seaport Research analyst Jeff Cantwell forecasts $280 per share, implying 305% upside.

Circle issues USDC and EURC stablecoins pegged to the U.S. dollar and euro. USDC ranks as the second-largest stablecoin by market value after Tether. Together, EURC and USDC represent 25% of the $310 billion stablecoin market.

JPMorgan Chase analysts highlight Circle’s competitive advantages. The bank notes that USDC’s transparent reserve management and regular audits appeal to institutional investors. Compliance with European MiCa regulations distinguishes it from competitors.

The stablecoin market could reach $2 trillion according to Seaport estimates. Bernstein analysts project $4 trillion within ten years. Circle expects USDC circulation to grow 40% annually. Wall Street forecasts 33% annual revenue growth through 2027.

Institutional Investors Buy the Dip

Cathie Wood’s Ark Invest purchased $3.1 million in Circle shares this week. The investment firm also added Coinbase and Bullish to its crypto-focused exchange-traded funds.

Circle raised $1.1 billion through its June IPO. The company sold 34 million shares, exceeding the planned 24 million due to strong demand. Shares opened 124% above the $31 IPO price at $69.

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