Company: CRCL
Filing Date: 2025-06-02
Form Type: S-1/A
Source: 0001193125-25-132755
Chunk: 348

Company: Circle Internet Group, Inc.
Filing Date: 2025-06-02
Form: S-1/A
Chunk 348
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 are classified as a non-currentliability and are fair valued using a probability weighted model based on the fair value of the Company’s common stock at the balance sheet date. The Company revalues the warrants at each reporting period and records the change in fair value in the unaudited Condensed Consolidated Statements of Operations. On February 20, 2025, the Company issued an aggregate of 45 thousand shares of Series E Preferred Stock to the warrant holders upon the cashless exercise of those warrants. The changes in carrying value of warrant liability are reflected in the following tables (in thousands):

| Table 10.2. Changes in Carrying Value of Warrant Liability |     |   |        |   |
|:-----------------------------------------------------------|:----|:--|-------:|:--|
| Balance as of December 31, 2024                            |     | $ |  1,591 |   |
| Warrants exercised                                         |     |   | (1,591 | ) |
| Balance as of March 31, 2025                               |     | $ |      — |   |

| Balance as of December 31, 2023 |     | $ | 1,642 |   |
| Fair value adjustment           |     |   |  (249 | ) |
| Balance as of March 31, 2024    |     | $ | 1,393 |   |

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 recorded in Other (expense) income, neton the unaudited Condensed 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 10.3. Changes in Carrying Value of Convertible Debt |     |   |        |   |
|:----------------------------------------------------------|:----|:--|-------:|:--|
| Balance as of December 31, 2024                           |     | $ | 40,717 |   |
| Net discount on convertible notes                         |     |