Company: CRCL
Filing Date: 2025-02-13
Form Type: DRS/A
Source: 0000950123-25-001965
Chunk: 339

Company: Circle Internet Group, Inc.
Filing Date: 2025-02-13
Form: DRS/A
Chunk 339
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 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-Merton option pricing model using the following assumptions: the Company’s estimated common share price on the grant date, a term of 10 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 are no marketing expenses or distribution and transaction costs related to the warrants for the year ended December 31, 2023. None of the 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 3,562,139 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 F-44

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

share. They expire five years from the grant date and are 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-Merton 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
are no expenses related to the warrants for the year ended December 31, 2023. None of the common shares associated with these warrants have been exercised, forfeited or expired.

16. Redeemable convertible preferred stock

In 2013, the Company issued
33,620,690 shares of Series A redeemable convertible preferred stock (“Series A Preferred Stock”), par value of $0.0001, at a purchase price of approximately $0.27 per share for total cash proceeds of $9.0 million.

In 2014, the Company issued 17,586