Company: CRCL
Filing Date: 2025-08-04
Form Type: DRS
Source: 0000950123-25-006942
Chunk: 418

Company: Circle Internet Group, Inc.
Filing Date: 2025-08-04
Form: DRS
Chunk 418
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 been exercised, forfeited or expired. F-71

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

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 common shares of the Company upon exercise. The warrants have an exercise price of $25.09 per share. They expire five
years from the grant date and the vesting of the warrants is subject to a performance condition. The fair value of the warrants, approximately $43.9 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 five years, a dividend yield of zero, volatility of 51%, and a risk-free rate of 4.38%. The warrants will be expensed over the requisite service
period if and when the achievement of the performance condition is probable. There were no marketing expenses or distribution and transaction costs related to the warrants for the years ended December 31, 2024 and 2023. None of the common
shares associated with these warrants have been exercised, forfeited or expired.

In December 2024, the Company entered into an agreement with a
commercial counterparty which includes the issuance of warrants to purchase up to approximately 2.9 million common shares of Circle Group. The warrants vest based upon the achievement of certain performance conditions for the benefit of the
Company. The warrants have an exercise price of $22.71 per share and an exercise period of six years from the grant date. The warrants are subject to certain performance conditions to be achieved within a three-year period. The fair value of the
warrants, approximately $56.1 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 six years, a
dividend yield of zero, volatility of 53%, and a risk-free rate of 4.43%. 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 distribution and transaction costs related to the warrants for the year ended December