Company: CRCL
Filing Date: 2025-02-13
Form Type: DRS/A
Source: 0000950123-25-001965
Chunk: 311

Company: Circle Internet Group, Inc.
Filing Date: 2025-02-13
Form: DRS/A
Chunk 311
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asset transactions are treated on the same tax principles as property transactions. The Company recognizes a gain or loss when digital assets are exchanged for other property, in the amount of the difference between the fair market value of the
property received and the tax basis of the exchanged digital assets. Receipts of digital assets in exchange for goods or services are included in taxable income at the fair market value on the date of receipt.

Foreign currency

The functional currency for most subsidiaries
outside of the United States is the local currency. For purposes of the Company’s consolidated financial statements, the assets and liabilities of these subsidiaries are translated to U.S. dollars at exchange rates in effect at the balance
sheet date. Revenues, costs, and expenses from these entities are translated to U.S. dollars using daily exchange rates. Gains and losses resulting from these

F-19

CONFIDENTIAL TREATMENT REQUESTED BY CIRCLE INTERNET GROUP, INC. PURSUANT TO 17 C.F.R. § 200.83

translations are recorded as a component of accumulated other comprehensive income (loss)
(“AOCI”). Gains and losses from the remeasurement of foreign currency transactions into the functional currency are recognized as Other income (expense), netin the Consolidated Statements of Operations.

Concentration of credit risk

The Company’s cash, cash
equivalents, restricted cash, accounts receivable and stablecoin receivables and loan receivables are potentially subject to concentration of credit risk. Cash, cash equivalents, and restricted cash are placed with financial institutions which are
of high credit quality. The Company has corporate and customer deposit balances with multiple financial institutions that substantially exceed the Federal Deposit Insurance Corporation insurance limit of $250 thousand per financial institution.

Related party transactions

In September 2023, the Company
entered into an agreement with a director to repurchase up to 240,000 ordinary shares of the Company to satisfy the director’s tax obligations relating to the exercise of expiring options. The repurchase was at a price of $25.09 per share. The
repurchase transaction closed in October 2023, and these treasury shares were subsequently canceled in December 2023.

On October 7, 2022, Circle entered into
an agreement to invest $0.3 million in the Series A funding of a startup focused on building an integrated platform that deconstructs loan documents into digital data. An executive officer of Circle is a domestic partner to the Founder and CEO
of this company.

On November 7