Company: CRCL
Filing Date: 2025-05-27
Form Type: S-1/A
Source: 0001193125-25-126208
Chunk: 391

Company: Circle Internet Group, Inc.
Filing Date: 2025-05-27
Form: S-1/A
Chunk 391
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 ) |
| Balance as of December 31, 2024 (1)                                                        |     | $ | 68,229 |   |

| (1) |     | Excludes $15.9 million of strategic investments not accounted for under the measurement alternative as of December 31, 2024. |

| Balance as of December 31, 2022         |     | $ | 42,516 |   |
| Investments in privately held companies |     |   | 25,390 |   |
| Upward adjustments                      |     |   |    753 |   |
| Downward adjustments                    |     |   | (1,040 | ) |
| Realized losses and impairments         |     |   | (1,611 | ) |
| Balance as of                           
 December 31, 2023 (1)                   |     | $ | 66,008 |   |

| (1) |     | Excludes $9.9 million of strategic investments not accounted for under the measurement alternative as of December 31, 2023. |

10. Derivatives and embedded derivatives The Company accounts for its obligation to return digital assets held as collateral as a debt host payable with an embedded derivative at fair value and recognizes the liability within Obligations to return digital asset collateral on the Consolidated Balance Sheets. The arrangement is a hybrid instrument, consisting of a debt host contract initially measured at fair value with an embedded forward feature based on the changes in the fair value of the underlying digital asset. Within the obligation to return digital asset collateral is a feature indexed to the underlying digital asset that is not clearly and closely related to a debt instrument and therefore meets the definition of a derivative, which requires bifurcation. Such feature is bifurcated and recorded at fair value through Digital assets (gains) losses and impairment on the Consolidated Statements of Operations. In the first quarter of 2023, the Company designated the embedded derivatives associated with the obligation to return digital asset collateral related to stablecoin lending as the hedging instrument in a fair value hedge relationship to hedge the fair value exposure of the corresponding digital assets. Subsequent to the fair value hedge designation, changes in the fair value of the hedged item were recorded to Digital assets (gains) losses and impairment along with the associated changes in the fair value of the embedded derivative in the Consolidated Statements of Operations. The hedging relationship was de-designated upon the adoption of ASU 2023-08 on January 1