Company: CRCL
Filing Date: 2025-02-13
Form Type: DRS/A
Source: 0000950123-25-001965
Chunk: 329

Company: Circle Internet Group, Inc.
Filing Date: 2025-02-13
Form: DRS/A
Chunk 329
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2) |     | The fair value measurement is based on the quoted market price of the underlying digital asset. |

| (3) |     | Excluded the host contract balance of $1.6 million as of December 31, 2023 and 2022. |

The Company did not make any transfers between the levels of the fair value hierarchy during the year ended December 31, 2023 and 2022. F-34

CONFIDENTIAL TREATMENT REQUESTED BY CIRCLE INTERNET GROUP, INC. PURSUANT TO 17 C.F.R. § 200.83 Warrant liability In March 2019, in connection with a bank financing, the Company issued warrants convertible into Series E preferred shares at a price of $16.23 per share. The warrants issued with these notes are legally detachable and exercisable and therefore meet the definition of freestanding and are not embedded in the bank financing. The warrants are classified as non-current liability and are fair valued using a probability weighted model based on the fair value of the Company’s common stock at the balance sheet date. The Company revalues the warrants at each reporting period and records the change in fair value in the Consolidated Statements of Operations.

| Balance as of December 31, 2022 |     | $ |  2,689 |   |
| Fair value adjustment           |     |   | (1,047 | ) |
| Balance as of December 31, 2023 |     | $ |  1,642 |   |

| Balance as of December 31, 2021 |     | $ | 1,349 |
| Fair value adjustment           |     |   | 1,340 |
| Balance as of December 31, 2022 |     | $ | 2,689 |

Obligation to return digital asset collateral — embedded derivatives Embedded in the debt host obligation to return digital asset collateral related to Circle stablecoin borrowing and lending activities is a feature indexed to digital asset that is not clearly and closely related to a debt instrument, which meets the definition of a derivative and requires bifurcation. The feature is fair valued using the “with” and “without” approach. During the period when an obligation to return the digital asset collateral exists, the embedded derivative is marked-to-marketand any changes in the fair value of the underlying digital asset is recorded within Digital assets (gains) losses and impairmenton the Consolidated Statements of Operations. Upon the return of the digital asset