Company: CRCL
Filing Date: 2025-02-13
Form Type: DRS/A
Source: 0000950123-25-001965
Chunk: 332

Company: Circle Internet Group, Inc.
Filing Date: 2025-02-13
Form: DRS/A
Chunk 332
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 satisfied. The
Company incurs expenses to assist in fulfilling obligations to process payment transactions. The Company acts as the principal in providing transaction services to customers and, therefore, recognizes associated revenue and expenses on a gross
basis.

Treasury services were related to Circle stablecoin lending services, which offered accredited investor customers the ability to generate fixed-term yield on
their Circle stablecoin holdings until it was wound down in November 2022. The Company received loan fee income from borrowers at a predetermined rate. Loan fee income was recognized using the effective interest method in accordance with the terms
of the loans and is outside the scope of ASC 606, Revenue from contracts with customers.

Other revenues include revenue generated from SeedInvest,
integration services, and Web3 and custody services. SeedInvest was the Company’s equity crowdfunding platform which connected start-up businesses with venture investors by providing an online platform where issuers could solicit and raise
capital. SeedInvest earned revenue primarily through fees paid by the issuer and transaction processing fees paid by the investors. These fees were only charged and recognized upon successfully closing of transactions which occur when funds had been
transferred from the investors to the issuer. Refer to Note 3 for information regarding the sale of SeedInvest assets in May 2023. Integration services relate to the implementation of Circle stablecoins on public blockchains. Payment for integration
services was received at the inception of the contract in the form of digital assets measured at fair value at the contract inception. Refer to the Digital assets discussion above regarding subsequent accounting for digital assets. Integration
services contracts typically have one performance obligation, and revenue is recognized at a point in time when the technical implementation is complete. Web3 and custody services provide customers with a suite of tools to securely custody digital
assets and enable custom transaction workflows and enhance operational efficiency. Revenue is earned primarily through subscription fee contracts that typically have one performance obligation provided and is satisfied over the

F-37

CONFIDENTIAL TREATMENT REQUESTED BY CIRCLE INTERNET GROUP, INC. PURSUANT TO 17 C.F.R. § 200.83 contractual life of the agreement. In certain instances, customers prepay their monthly subscription by paying annually or quarterly. In those instances, the Company recognizes revenue over the life of the contract. Deferred revenue Deferred revenue represents consideration received that is yet to be recognized as revenue. The changes in our deferred revenue are reflected in the following table (in thousands):

|                                                                                |     | Deferred revenue |        |   |
|:-------------------------------------------------------------------------------|:----|: