Company: CRCL
Filing Date: 2025-02-13
Form Type: DRS/A
Source: 0000950123-25-001965
Chunk: 146

Company: Circle Internet Group, Inc.
Filing Date: 2025-02-13
Form: DRS/A
Chunk 146
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 transaction services products have been discontinued, a $7.5 million decrease in treasury services revenue as the Circle Yield product offering has been terminated, and a $2.8 million decrease in other revenue as our SeedInvest crowdfunding services have ceased. This was partially offset by a $6.0 million increase in revenues related to integration services. Distribution, transaction, and other costs Distribution and transaction costs. Distribution and transaction costs by $ million, or %, for the year ended December 31, 2024, compared to the year ended December 31, 2023, . Distribution and transaction costs increased by $432.9 million, or 150.8%, for the year ended December 31, 2023, compared to the year ended December 31, 2022, primarily driven by a $443.2 million increase in distribution costs paid to Coinbase as a result of increases in reserve income and a higher distribution cost to Coinbase as a percentage of reserve income. The increase in the Coinbase distribution cost percentage is primarily driven by a change in the distribution costs payment calculation in August 2023 (when the Company entered into the Collaboration Agreement) to utilize a fixed percentage of off-platform balances as opposed to a variable calculation of each party’s respective issuance or resale volume, as was the case under the previous 98

CONFIDENTIAL TREATMENT REQUESTED BY CIRCLE INTERNET GROUP, INC. PURSUANT TO 17 C.F.R. § 200.83

agreements governing the operation of the Centre Consortium. This was partially offset by
a $9.9 million decrease in other USDC market making and distribution incentive costs.

Other costs. Other costs by
$ million or %, for the year ended December 31, 2024, compared to the year ended December 31, 2023, . Other costs decreased by $14.5 million or 64.7%, for
the year ended December 31, 2023, compared to the year ended December 31, 2022, primarily driven by a $9.2 million decrease in the fees related to transactions processed through Circle’s platform and a $6.1 million decrease in
treasury services costs.

Operating expenses

Compensation expenses. Compensation expenses by $ million, or %, for the
year ended December 31, 2024, compared to the year ended December 31, 2023, . Compensation expenses increased by $83.1 million, or 39.0%, for the year ended