Company: CRCL
Filing Date: 2025-04-01
Form Type: S-1
Source: 0001193125-25-070481
Chunk: 173

Company: Circle Internet Group, Inc.
Filing Date: 2025-04-01
Form: S-1
Chunk 173
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 to the inherent uncertainties described above in respect of predicting or forecasting USDC in circulation; such changes in interest rates occur on January 1, 2025 and are held constant through the period and impact all reserve assets equally; and our allocation of reserve assets do not change, as we are unable to predict the market and 122

yield reactions to interest rate changes. The table below summarizes the hypothetical impact on our operating results for the year ending December 31, 2025 based on our internal modeling, which are subject to uncertainties and limitations as discussed above (in millions):

| Change in interest rates from average 
 yield of 4.33% in December 2024       |     | Estimated change in reserve income |      |   |     | Estimated change in distribution and 
 transaction costs                    |      |   |
|:--------------------------------------|:----|:-----------------------------------|-----:|:--|:----|:-------------------------------------|-----:|:--|
| +200 bps                              |     | $                                  |  882 |   |     | $                                    |  468 |   |
| +100 bps                              |     | $                                  |  441 |   |     | $                                    |  234 |   |
| -100 bps                              |     | $                                  | (441 | ) |     | $                                    | (234 | ) |
| -200 bps                              |     | $                                  | (882 | ) |     | $                                    | (468 | ) |

Foreign currency risk Our reporting currency is the U.S. dollar and the functional currency of our international operations is its local currency. The assets and liabilities of each of our international operations are translated into dollars at exchange rates in effect at each balance sheet date. Revenues and expenses are translated using the average exchange rate for the relevant period. Equity transactions are translated using historical exchange rates. Decreases in the relative value of the U.S. dollar to other currencies may negatively affect revenues and other operating results as expressed in dollars. Foreign currency translation adjustments are accounted for as a component of accumulated other comprehensive income (loss) within stockholders’ equity (deficit). Gains or losses due to transactions in foreign currencies are included in Other income (expense), net,on our consolidated statements of operations. We have not engaged in hedging of foreign currency transactions to date, although we may choose to do so in the future. A 10.0% increase or decrease in current exchange rates would not have a material effect on our operating