Company: CRCL
Filing Date: 2025-05-16
Form Type: S-1/A
Source: 0001193125-25-121234
Chunk: 174

Company: Circle Internet Group, Inc.
Filing Date: 2025-05-16
Form: S-1/A
Chunk 174
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 Act; and
(iv) redeem shares involuntarily in certain cases, such as when the value of a shareholder account falls below a specified level.

Our determination of whether to
invest and the amount of investment in the Circle Reserve Fund is governed by our reserve management standard. See “Business—Reserve management standard.” The Circle Reserve Fund has a $2 billion minimum investment requirement.
However, we are not obligated to invest in the Circle Reserve Fund.

121

Sources of liquidity

Debt

Refer to Note 15 to our audited consolidated financial statements
and Note 14 to our unaudited condensed consolidated financial statements included elsewhere in this prospectus for a summary of our outstanding debt as of December 31, 2024 and March 31, 2025, respectively.

In March 2019, we entered into an agreement with an investment company to issue convertible promissory notes in connection with the acquisition of SeedInvest. We agreed
to pay the holder the principal amount together with any interest on the unpaid principal balance for the notes beginning on the date of the agreement. There was one convertible promissory note outstanding as of December 31, 2023, which had a
principal amount of $24.0 million and is convertible into Series E preferred stock subject to the conversion provisions in the agreement (the “2019 Note”). In September 2024, certain holders elected to convert a principal amount of
approximately $8.3 million of the 2019 Note, plus accrued but unpaid interest, into 524 thousand shares of Series E preferred stock at a conversion price of $16.23 per share. The 2019 Note matures on March 1, 2026, unless earlier
converted, and has an annual interest rate of 2.9% due annually in arrears on the last day of each calendar year. At any time during the term and at the sole discretion of the holder, but only once in any given
12-month period, all or a portion of the principal amount with any accrued and unpaid interest (collectively, the “Conversion Amount”) can at the election of the holder be converted into shares of
Series E preferred stock at a conversion price of $16.23 per share.

Warrants

In April 2023, Circle entered into an agreement with a commercial counterparty to grant warrants to purchase up to 4.5 million common shares of a consolidated
subsidiary that will be automatically converted one for one into shares of Class A common stock of