Company: CRCL
Filing Date: 2025-05-16
Form Type: S-1/A
Source: 0001193125-25-121234
Chunk: 141

Company: Circle Internet Group, Inc.
Filing Date: 2025-05-16
Form: S-1/A
Chunk 141
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 was
approximately 20%, 12%, and 5%, respectively; and the percentage of USDC in circulation held outside Circle’s and Coinbase’s platforms was approximately 75%, 86%, and 94%, respectively. As of March 31, 2025 and 2024, the percentage of
USDC in circulation held on Circle’s platform was approximately 6% and 3%, respectively; based on information provided to us by Coinbase, the percentage of USDC in circulation held on Coinbase’s platform was approximately 25% and 17%,
respectively; and the percentage of USDC in circulation held outside Circle’s and Coinbase’s platforms was approximately 69% and 80%, respectively.

For
the year ended December 31, 2024, 2023, and 2022, the daily weighted-average percentage of USDC in circulation held on Circle’s platform was approximately 2%, 2%, and 2%, respectively; based on information provided to us by Coinbase, the daily
weighted-average percentage of USDC in circulation held on Coinbase’s platform was approximately 18%, 8%, and 3%, respectively; and the daily weighted-average percentage of USDC in circulation held outside Circle’s and Coinbase’s
platforms was approximately 80%, 90%, and 95%, respectively. For the three months ended March 31, 2025 and 2024, the daily weighted-average percentage of USDC in circulation held on Circle’s platform was approximately 6% and 2%, respectively;
based on information provided to us by Coinbase, the daily weighted-average percentage of USDC in circulation held on Coinbase’s platform was approximately 22% and 14%, respectively; and the daily weighted-average percentage of USDC in
circulation held outside Circle’s and Coinbase’s platforms was approximately 72% and 84%, respectively.

During the periods presented, there has been
an increasing proportion of USDC being held on Coinbase’s platform, which in turn has increased our payments to Coinbase under the Collaboration Agreement and thus our distribution costs. We are unable to predict whether the proportion of USDC
held on Coinbase’s platform will continue to increase in future periods, as such proportion depends on factors beyond our control, including Coinbase’s actions. However, if the proportion of USDC held on Coinbase’s platform continues
to increase in future periods, the growth in our distribution costs may exceed the growth of our reserve income, such that distribution costs as a percentage of reserve income increases in future periods.

In