Company: CRCL
Filing Date: 2025-04-18
Form Type: S-1/A
Source: 0001193125-25-084832
Chunk: 343

Company: Circle Internet Group, Inc.
Filing Date: 2025-04-18
Form: S-1/A
Chunk 343
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, digital assets 
 are measured at fair value.                                                                                                                                                                                              |

| (2) |     | The fair value measurement is based on the quoted market price of the underlying digital asset. |

| (3) |     | Excluded the host contract balance of $0.8 million and $1.6 million as of December 31, 2024 and 2023, respectively. |

| (4) |     | Excluded obligation to return digital asset collateral of $1.9 million, representing the debt host obligation which is not measured and recorded at fair value as of December 31, 2023. |

F-34

There were no transfers into or out of Level 3 of the fair value hierarchy during the years ended December 31, 2024 and 2023. Warrant liability The Company has issued warrants convertible into Series E preferred shares at a price of $16.23 per share. The warrants are classified as a 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. The changes in carrying value of warrant liability are reflected in the following tables (in thousands):

| Table 11.2. Changes in Carrying Value of Warrant Liability |     |   |       |   |
|:-----------------------------------------------------------|:----|:--|------:|:--|
| Balance as of December 31, 2023                            |     | $ | 1,642 |   |
| Fair value adjustment                                      |     |   |   (51 | ) |
| Balance as of                                              
 December 31, 2024                                          |     | $ | 1,591 |   |

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

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 “