Company: CRCL
Filing Date: 2025-02-13
Form Type: DRS/A
Source: 0000950123-25-001965
Chunk: 303

Company: Circle Internet Group, Inc.
Filing Date: 2025-02-13
Form: DRS/A
Chunk 303
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 |         |   | 2022 |   |          |   |
|:-------------------------------------------------------------|:-----|:------------------------|--------:|:--|:-----|:--|---------:|:--|
| (Gains)/losses on disposals of digital assets                |      | $                       | (13,964 | ) |      | $ | (158,015 | ) |
| Gains on changes in fair value of hedged items               |      |                         |  (9,031 | ) |      |   |        — |   |
| (Gains)/losses on changes fair value of embedded derivatives |      |                         |   8,553 |   |      |   | (211,997 | ) |
| Impairments on digital assets                                |      |                         |     954 |   |      |   |  427,448 |   |
| Total                                                        |      | $                       | (13,488 | ) |      | $ |   57,436 |   |

Digital assets transactions related to Circle Yield Circle Yield was a fully collateralized, fixed-term yield-generating product offered only to accredited investors (the “Lenders”), as defined in Rule 501 Regulation D until it was wound down in November 2022. The Company borrowed USDC from the Lenders and lent USDC received to a counterparty (the “Borrower”). The Company acted as a principal in both the borrowing and lending arrangements as it is the primary obligor on the borrowing from Lenders, assumed credit risk associated with the Borrowers, and it had discretion in establishing the loan and borrowing fees as described below. Loan fee income and borrowing fees were calculated using the effective interest method. Stablecoins receivablewere recorded at amortized cost, net of any allowance for credit losses, if applicable. An impairment was recognized if it was probable that the Company were unable to collect all amounts due according to the contractual terms of the agreement. In connection with the USDC borrowed from Lenders and the USDC lent to its Borrower, the Company recognized Stablecoins receivableand Stablecoins borrowedon the Consolidated Balance Sheets. In connection with its lending to the Borrower, the Company also received Bitcoin collateral (with an initial collateral value of 125% of USDC lent and continually maintained within the range of 115% and 135%) into its custody account and received a security interest in the collateral. The collateral received was denominated in Bitcoin and included in Digital