Company: CRCL
Filing Date: 2025-05-27
Form Type: S-1/A
Source: 0001193125-25-126208
Chunk: 392

Company: Circle Internet Group, Inc.
Filing Date: 2025-05-27
Form: S-1/A
Chunk 392
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, 2024. The Company enters into certain strategic investments in the form of forward contracts to purchase a specified quantity of digital assets. Certain of these contracts are accounted for as derivatives or investments with embedded derivatives, and accounts for these derivatives and embedded derivatives within Investments on the Consolidated Balance Sheets. The derivatives and bifurcated embedded derivatives are marked to market through Other income (expense), net on the Consolidated Statements of Operations. F-62

The fair value of the Company’s derivatives and embedded derivatives are as follows (in thousands):

| Table 10.1. Fair Value of Derivative and Embedded Derivative Assets and Liabilities |     |   | December 31, 2024 |     |   | December 31, 2023 |
|:------------------------------------------------------------------------------------|:----|:--|------------------:|:----|:--|------------------:|
| Derivative and embedded derivative assets:                                          |     |   |                   |     |   |                   |
| Investments - embedded derivatives                                                  |     | $ |             8,982 |     | $ |             3,521 |
| Investments - derivatives                                                           |     | $ |               350 |     | $ |               587 |
| Derivative and embedded derivative liabilities:                                     |     |   |                   |     |   |                   |
| Obligation to return digital asset collateral - embedded                            
 derivatives (1)                                                                     |     | $ |                 — |     | $ |             1,392 |

| (1) |     | Represents $1.4 million of embedded derivatives in fair value hedging relationships as of December 31, 2023. The hedging relationships were de-designated upon the adoption of ASU 2023-08 on January 1, 2024. |

The following table summarizes notional amounts related to derivatives and embedded derivatives (in thousands):

| Table 10.2. Notional Amounts of Derivative and Embedded Derivative Assets and Liabilities |     |   | December 31, 2024 |     |   | December 31, 2023 |
|:------------------------------------------------------------------------------------------|:----|:--|------------------:|:----|:--|------------------:|
| Obligation to return digital asset collateral — embedded derivatives (1)                  |     | $ |                 — |     | $ |             1,905 |
| Investments — embedded derivatives                                                        |     | $ |               791 |     | $ |             1,