Company: CRCL
Filing Date: 2025-08-04
Form Type: DRS
Source: 0000950123-25-006942
Chunk: 408

Company: Circle Internet Group, Inc.
Filing Date: 2025-08-04
Form: DRS
Chunk 408
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 lending activities as of December 31, 2024. Convertible debt, net of debt discount On March 1, 2019, the Company issued a convertible note in connection with an acquisition. The note had a par value of $24.0 million, matures in seven years and is convertible into Series E preferred shares with a 2.9% interest rate. The Company elected the fair value option for recording this note. We measured the fair value of our convertible debt using the probability weighted “as converted” model. The change in fair value of the note is F-63

CONFIDENTIAL TREATMENT REQUESTED BY CIRCLE INTERNET GROUP, INC. PURSUANT TO 17 C.F.R. § 200.83 recorded in Other income (expense), neton the Consolidated Statements of Operations. The changes in carrying value of convertible debt, net of debt discount are reflected in the following tables (in thousands): Table 11.3. Changes in Carrying Value of Convertible Debt

| Balance as of December 31, 2023                              |     | $ |  58,487 |   |
| Net discount on convertible notes                            |     |   |   1,062 |   |
| Capitalized interest                                         |     |   |     479 |   |
| Fair value adjustment                                        |     |   |  (3,428 | ) |
| Fair value adjustment – credit risk                          |     |   |  (1,095 | ) |
| Conversion of convertible notes to Series E Preferred Shares |     |   | (14,788 | ) |
| Balance as of December 31, 2024                              |     | $ |  40,717 |   |

| Balance as of December 31, 2022     |     | $ |  78,264 |   |
| Net discount on convertible notes   |     |   |   1,042 |   |
| Capitalized interest                |     |   |     470 |   |
| Fair value adjustment               |     |   | (20,107 | ) |
| Fair value adjustment – credit risk |     |   |  (1,182 | ) |
| Balance as of December 31, 2023     |     | $ |  58,487 |   |

The following significant unobservable inputs were used in the valuation: Table 11.4. Significant Unobservable Inputs

|                |     |     | December 31,