Company: CRCL
Filing Date: 2025-08-12
Form Type: S-1
Source: 0001193125-25-178989
Chunk: 421

Company: Circle Internet Group, Inc.
Filing Date: 2025-08-12
Form: S-1
Chunk 421
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 of February 21, 2025. These outstanding warrants are classified as liabilities and have a fair value of $ 1.6 million as of December 31, 2024 and 2023, which are reflected as Warrant liabilityon the Consolidated Balance Sheets. Convertible debt, net of debt discount In March 2019, the Company entered into an agreement with an investment company to issue two convertible promissory notes in connection with an acquisition. Pursuant to the agreement, the Company agrees to pay the holder the principal amount together with any interest on the unpaid principal balance for the two notes beginning on the date of the agreement. The first note has a principal amount of $ 24.0 million and is convertible into Series E preferred stock subject to the conversion provisions in the agreement (collectively the “First Note”). The First 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, 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 in Series E preferred shares. The outstanding Conversion Amount will convert into a specified number of shares of Series E preferred stock at a conversion price per share equal to $ 16.23 . The second note had a principal amount of $ 10.0 million and the Company repaid the remaining principal including capitalized amounts of $ 10.7 million and interest of $ 0.1 million on March 1, 2021. In September 2024, certain holders of the Company’s convertible notes converted their principal balance of $ 8.3 million into 524,009 shares of Series E Preferred Shares at a conversion rate of $ 16.23 per share. The Company has elected the fair value option for recording its convertible notes on the Consolidated Balance Sheets, which are recorded at a net discount on acquisition date. The fair value of outstanding convertible notes was $ 40.7 million and $ 58.5 million as of December 31, 2024 and 2023, respectively, and are reflected as Convertible debt, net of debt discounton the Consolidated Balance Sheets. The debt discount is amortized and included in Other income (expense), netin the Consolidated Statements of Operations. The change in fair value of the