Company: CRCL
Filing Date: 2025-02-13
Form Type: DRS/A
Source: 0000950123-25-001965
Chunk: 299

Company: Circle Internet Group, Inc.
Filing Date: 2025-02-13
Form: DRS/A
Chunk 299
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 which we have the intent and ability to hold the investment for greater than 12 months are classified as non-current in the
Consolidated Balance Sheets.

Assets segregated for the benefit of stablecoin holders

The Company segregates assets backing Circle stablecoins to satisfy its obligations under all applicable regulatory requirements and commercial laws and classifies these
assets as current based on their purpose and availability to fulfill its direct obligation to customers. Under the applicable regulatory requirements, the Company is obligated to redeem all Circle stablecoins presented by Circle Mint customers on a
one-for-one basis for U.S. dollars for USDC and on a one-for-one basis for euros for EURC, except in limited circumstances, such as when prohibited by law or court order or instances where fraud is suspected. As such, the Company does not have an
unconditional right to deny Circle stablecoin redemption requests from Circle Mint customers. The Company holds only bare legal title in the accounts holding the reserve funds, and maintains no legal, equitable, financial or ownership interest over
the

F-11

CONFIDENTIAL TREATMENT REQUESTED BY CIRCLE INTERNET GROUP, INC. PURSUANT TO 17 C.F.R. § 200.83

reserves themselves held for the benefit of Circle stablecoin holders in such accounts.
The Company’s eligible liquid assets were greater than the aggregate amount of custodial funds due to customers for the periods presented.

Cash and cash equivalents segregated for the benefit of stablecoin holders and Cash and cash equivalents segregated for corporate held stablecoins

Cash and cash
equivalents segregated for the benefit of stablecoin holders and Cash and cash equivalents segregated for corporate held stablecoins represent cash and cash equivalents maintained in segregated accounts that are held for the exclusive benefit of
customers and stablecoin holders, including stablecoins held by the Company. Beginning in November 2022, one of the Company’s subsidiaries held investments in the Circle Reserve Fund (the “Fund”). The Fund is managed by BlackRock
Advisors, LLC, and the securities purchased by the Fund are subject to the quality, diversification, and other requirements of Rule 2a-7 under the Investment Company Act of 1940, as amended. Shares of the Fund
are only available for purchase by the Company’s subsidiary, which owns all outstanding shares of the Fund.

In January 2025, the Company retrospectively
changed its accounting policy for the Fund and now reflects our investment in the Fund as a financial asset under the fair value option pursuant to ASC 825,