Company: CRCL
Filing Date: 2025-04-01
Form Type: S-1
Source: 0001193125-25-070481
Chunk: 159

Company: Circle Internet Group, Inc.
Filing Date: 2025-04-01
Form: S-1
Chunk 159
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 operations, including our working capital and capital expenditure needs and other commitments. Our recurring working capital requirements relate mainly to our cash operating costs. Our capital expenditure requirements consist mainly of software development related to our blockchain payments infrastructure and are primarily dependent on the expansion of our products as well as salaries and wages of employees associated with software development projects. As of December 31, 2024, we had total liquidity sources of $1,045.5 million, which consisted of $751.0 million in cash and cash equivalents, and $294.5 million in cash and cash equivalents segregated for corporate-held stablecoins. We believe our operating cash flows, together with our total liquidity sources on hand, will be sufficient to meet our working capital and capital expenditure requirements for a period of at least 12 months from the date of this prospectus. We expect our capital expenditures and working capital requirements to 113

continue to increase in the immediate future as we continue to invest in the expansion of our products and services. Refer to Note 2 to the consolidated financial statements included elsewhere in
this prospectus for additional details regarding the accounting for the use of corporate-held stablecoins in our statement of cash flows.

Cash and cash equivalents
segregated for the benefit of stablecoin holders was $43.9 billion, $24.3 billion, and $36.0 billion as of December 31, 2024, 2023, and 2022, respectively. This represents cash and cash equivalents maintained in segregated reserve accounts. We
segregate the use of the assets underlying the customer funds to meet regulatory requirements and classify the assets as current based on their purpose and availability to fulfill our direct obligation under custodial funds due to stablecoin
holders.

Off-balancesheet arrangements

As of December 31, 2024, 2023, and 2022, we did not have any relationships with unconsolidated organizations or financial partnerships, such as structured finance
or special purpose entities that would have been established for the purpose of facilitating off-balance sheet arrangements or other contractually narrow or limited purposes.

Composition of USDC reserves

Circle manages its USDC reserves in
accordance with the terms of its agreement with Circle Mint customers and applicable regulatory requirements and commercial laws. All USDC minted and outstanding are backed by an equivalent amount of U.S. dollar-denominated assets held in accounts
that are titled FBO holders of USDC, and are held in omnibus structures, agnostic to individual customer and customer jurisdiction. During