Company: CRCL
Filing Date: 2025-08-12
Form Type: S-1
Source: 0001193125-25-178989
Chunk: 407

Company: Circle Internet Group, Inc.
Filing Date: 2025-08-12
Form: S-1
Chunk 407
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, the inherent lack of liquidity and unobservable inputs used to measure fair value that require management’s judgment. Any subsequent changes in value of these investments will be included as a part of Other income (expense), neton the Consolidated Statements of Operations.

The changes in the carrying value of equity investments carried under the measurement alternative along with investments in limited partnerships and certain forward contracts to purchase a specified quantity of equity shares in private companies are presented below (in thousands):

**Table 9. Changes in the Carrying Value of Equity Investments under Measurement Alternative**

| Balance as of December 31, 2023                         |     | $ | 66,008 |   |
| Net investments and returns in privately held companies |     |   |  1,162 |   |
| Upward adjustments                                      |     |   |  4,969 |   |
| Downward adjustments                                    |     |   | (2,098 | ) |
| Realized losses and impairments                         |     |   | (1,812 | ) |
| Balance as of December 31, 2024(1)                      |     | $ | 68,229 |   |

| (1) | Excludes $15.9million 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 $9.9million 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