Company: CRCL
Filing Date: 2025-08-12
Form Type: S-1
Source: 0001193125-25-178989
Chunk: 382

Company: Circle Internet Group, Inc.
Filing Date: 2025-08-12
Form: S-1
Chunk 382
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-08”), digital assets are measured at fair value. Fair value measurements for digital assets are based on quoted market prices in active markets. Changes in fair value of digital assets held in the ordinary course of business are recognized in Digital assets (gains) losses and impairmentin the Consolidated Statements of Operations. Changes in fair value of digital assets held as investments are recognized in Other income (expense), net. Gains and losses upon sale of digital assets are measured as the difference between the cash proceeds and the carrying basis of the digital assets as determined on a first-in, first-out (“FIFO”) basis for each pool of digital assets. These realized gains and losses on digital assets held in the ordinary course of business are recorded to Digital assets (gains) losses and impairment,and realized gains and losses on digital assets held as investments are recorded to Other income (expense), net.

Prior to January 1, 2024, digital assets were accounted for as intangible assets with indefinite useful lives. The Company initially measured digital assets at cost and tested digital assets for impairment by comparing the digital asset’s fair value to its carrying value and recognized an impairment loss whenever the carrying value exceeded quoted market prices of the respective digital asset during the period. Company owned digital assets and digital assets held as collateral were reflected within DigitalAssets on the Consolidated Balance Sheets. Impairment losses are reflected within Digital assets (gains) losses and impairmentin the Consolidated Statements of Operations.

**Digital Assets related to Lending Services**

The Company enters into Circle stablecoin lending arrangements. Loan fee income earned from lending activities are calculated using the effective interest method and are included in Other revenue, in the Consolidated Statements of Operations. In connection with Circle stablecoins lent to its borrowers, the Company recognizes Stablecoins receivable, neton the Consolidated Balance Sheets. Stablecoins receivable are recorded

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at amortized cost, net of any allowance for credit losses, if applicable. An impairment is recognized if it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the agreement. In connection with certain lending, the Company may receive Bitcoin as collateral into its custody account, which is included in Digital assetson the Consolidated Balance Sheets. Refer to Digital Assets above and Derivative Contracts, including Embedded Derivativesbelow for further information. Deposits from Stablecoin Holders Funds received from customers from the issuance of Circle stablecoins represent claims which are reflected as a liability classified as