Company: CRCL
Filing Date: 2025-06-02
Form Type: S-1/A
Source: 0001193125-25-132755
Chunk: 352

Company: Circle Internet Group, Inc.
Filing Date: 2025-06-02
Form: S-1/A
Chunk 352
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21, 2025. On February 20, 2025, the Company issued an aggregate of 45 thousand shares of Series E Preferred Stock to the warrant holders upon the cashless exercise of those warrants. Convertible debt, net of debt discount In March 2019, the Company entered into an agreement with an investment company to issue two convertible promissory notes in connection with an acquisition. Pursuant to the agreement, the Company agrees to pay the holder the principal amount together with any interest on the unpaid principal balance for the two notes beginning on the date of the agreement. The first note has a principal amount of $24.0 million and is convertible into Series E preferred stock subject to the conversion provisions in the agreement (collectively the “First Note”). The First Note matures on March 1, 2026, unless earlier converted, and has an annual interest rate of 2.9% due annually in arrears on the last day of each calendar year. At any time during the term and at the sole discretion of the holder, all or a portion of the principal amount with any accrued and unpaid interest (collectively the “Conversion Amount”) can at the election of the holder be converted in Series E preferred shares. The outstanding Conversion Amount will convert into a specified number of shares of Series E preferred stock at a conversion price per share equal to $16.23. The second note had a principal amount of $10.0 million and the Company repaid the remaining principal including capitalized amounts of $10.7 million and interest of $0.1 million on March 1, 2021. F-22

In September 2024, certain holders of the Company’s convertible notes converted their principal balance of $8.3 million into 524 thousand shares of Series E Preferred Shares at a conversion rate of $16.23 per share. The Company has elected the fair value option for recording its convertible notes on the unaudited Condensed Consolidated Balance Sheets, which are recorded at a net discount on acquisition date. The fair value of outstanding convertible notes was $37.4 million and $40.7 million as of March 31, 2025 and December 31, 2024, respectively, and are reflected as Convertible debt, net of debt discounton the unaudited Condensed Consolidated Balance Sheets. The debt discount is amortized and included in Other (expense) income, netin the unaudited Condensed Consolidated Statements of Operations. The change in fair value of