Company: CRCL
Filing Date: 2025-04-18
Form Type: S-1/A
Source: 0001193125-25-084832
Chunk: 144

Company: Circle Internet Group, Inc.
Filing Date: 2025-04-18
Form: S-1/A
Chunk 144
---
 to transactions on a first-in, first-out basis. Impairment losses are reflected within digital assets (gains) losses and impairment in the consolidated statements of operations. Beginning in the first quarter of 2023, we designated the embedded derivatives associated with the obligation to return digital asset collateral related to stablecoin lending as the hedging instrument in a fair value hedge relationship to hedge the fair value exposure of the corresponding digital assets. Subsequent to the fair value hedge designation, the digital assets designated as the hedged item along with the embedded derivative are recorded at fair value. Changes in fair value of the embedded derivative and the fair value of the hedged item are recorded to Digital assets (gains) losses and impairment in the consolidated statements of operations. Other income (expense), net Other income (expense), net, is composed of multiple income (expense) categories, including, but not limited to, the following:

| • |     | Realized and unrealized gains (losses) on liabilities at fair value (e.g., convertible debt, warrants, derivatives, and 
 embedded derivatives);                                                                                                  |

| • |     | Realized and unrealized gains (losses) on investments, which include changes in fair value related to our marketable equity 
 securities and observable price changes on our non-marketable equity securities;                                            |

| • |     | Impairment losses on equity investments; |

| • |     | Interest income on corporate cash balances; |

| • |     | Interest expense, net of accretion of discounts and amortization of premiums; and |

| • |     | Foreign currency exchange gains and losses due to remeasurement of certain foreign currency-denominated monetary assets and 
 liabilities.                                                                                                                |

103

Income tax expense (benefit) Income tax expense (benefit) includes income taxes related to foreign jurisdictions and U.S. federal and state income taxes. As we conduct business activities internationally, any changes in the U.S. and foreign taxation of such activities may increase our overall provision for income taxes in the future. Results of operations We discuss our historical results of operations below on a consolidated basis. Past financial results are not necessarily indicative of future results. The following table sets forth a summary of our consolidated results of operations for the periods indicated, and the changes between periods. These results of operations have been prepared on the same basis as our consolidated financial statements included elsewhere in this prospectus. In the opinion of management, the financial information set forth in the table below reflects all normal recurring adjustments necessary for the