Company: CRCL
Filing Date: 2025-05-16
Form Type: S-1/A
Source: 0001193125-25-121234
Chunk: 344

Company: Circle Internet Group, Inc.
Filing Date: 2025-05-16
Form: S-1/A
Chunk 344
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 |     |     |            37,391 |
| Conversion of Series F redeemable convertible preferred stock     |     |     |          9,516 |     |     |             9,516 |
| Common stock issuable in connection with business combinations    |     |     |          2,015 |     |     |               548 |
| Common stock issuable under stock award plan                      |     |     |         46,979 |     |     |            42,694 |
| Common stock available for future issuance under stock award plan |     |     |          4,356 |     |     |             9,649 |
| Total                                                             |     |     |        193,157 |     |     |           192,653 |

Warrants In April 2023, the Company entered into an agreement with a commercial counterparty to grant warrants to purchase up to 4.5 million common shares of a consolidated subsidiary that will be automatically converted one for one with Class A common shares of Circle Group upon exercise. The warrants have an exercise price of $42.14 per share and an exercise period of ten years from the grant date. The warrants are subject to certain F-23

service conditions to be achieved over a two-year period and performance conditions to be achieved over a five-year period. The fair value of the warrants,
approximately $80.1 million, was measured at the time of issuance using the Black-Scholes option pricing model using the following assumptions: the Company’s estimated common share price on the grant date, a term of ten years, a dividend
yield of zero, volatility of 44%, and a risk-free rate of 3.45%. The warrants will be expensed as the service conditions are achieved or over the requisite service period if and when the achievement of the performance conditions are probable. There
were no marketing expenses or distribution and transaction costs related to the warrants for the three months ended March 31, 2025 and 2024. In April 2025, warrants to purchase 3.4 million common shares expired. None of the remaining 1.1
million common shares associated with these warrants have been exercised, forfeited or expired.

In August 2023, the Company entered into an agreement with a digital
asset exchange to grant warrants to purchase up to 3.6 million common shares of a consolidated subsidiary that will be automatically converted one for one with Class A common shares of the Company upon exercise. The warrants have