Company: CRCL
Filing Date: 2025-02-13
Form Type: DRS/A
Source: 0000950123-25-001965
Chunk: 305

Company: Circle Internet Group, Inc.
Filing Date: 2025-02-13
Form: DRS/A
Chunk 305
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 probable that the Company will be unable to collect all amounts due according to the contractual terms of the agreement. As of December 31, 2022, the Company has terminated all stablecoin borrowing arrangements and there was no
Stablecoins borrowed balance on the Consolidated Balance Sheets.

In connection with certain lendings, the Company may receive Bitcoin collateral into its
custody account. Generally, the collateral received is denominated in Bitcoin and included in Digital assetson the Consolidated Balance Sheets. The gain and loss related to return of digital assets held as collateral and impairment loss on
digital assets are included in Digital assets (gains) losses and impairmentin the Consolidated Statements of Operations. Refer to Derivative Contracts, including Embedded Derivatives below for further information.

The obligation to return the collateral is accounted for as a hybrid instrument, with a liability host contract that contains an embedded derivative based on the changes
in the fair value of the underlying digital asset. The host contract and its embedded derivative are reported in Obligations to return digital asset collateral on the Consolidated Balance Sheets. The embedded derivative is accounted for at
fair value, with changes in fair value recognized in Digital assets (gains) losses and impairment in the Consolidated Statements of Operations.

Deposits from stablecoin holders

Funds received from customers from
the issuance of Circle stablecoins represent claims which are reflected as a liability classified as Deposits from stablecoin holderson the Consolidated Balance Sheets. As a licensed money transmitter, Circle is obligated to redeem all
Circle stablecoins presented by Circle Mint customers on a one-for-one basis for U.S. dollars or euros, except in limited circumstances, such as when prohibited by law or court

F-15

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

order or instances where fraud is suspected. As such, the Company does not have an
unconditional right to deny Circle stablecoin redemption requests from Circle Mint customers. With the exception of general stablecoin holders subject to specific regulatory requirements such as those in the European Union, the Company does not
redeem Circle stablecoins from stablecoin holders who are not Circle Mint customers. However, Circle stablecoins are supported by numerous global digital asset exchanges and marketplaces, including neo-banks, brokerages, payment providers,
remittance providers, superapps and commerce companies, and as such Circle stablecoin holders could transact with Circle Mint customers,