Company: CRCL
Filing Date: 2025-02-13
Form Type: DRS/A
Source: 0000950123-25-001965
Chunk: 300

Company: Circle Internet Group, Inc.
Filing Date: 2025-02-13
Form: DRS/A
Chunk 300
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 Financial Instruments, because the Company believes that measurement at fair value provides
more useful information to financial statement users due to the short-term, highly liquid nature of the Fund. The shares of the Fund would otherwise be accounted for under the equity method pursuant to ASC 323, Equity Method and Joint Ventures, if
the Company had not elected the fair value option. The Company measures fair value at the Fund’s net asset value per share. The change had no effect on the consolidated financial statements except for the additional required disclosures in Note
23. As of December 31, 2023 and 2022, balances held in the Fund included in Cash and cash equivalents segregated for the benefit of stablecoin holders were $22,238.0 million and $23,663.9 million, respectively, and the Fund has
maintained a net asset value of $1.00 per share for all periods presented. In connection with the Fund, dividends receivable is included in Prepaidexpenses and other current assets on the Consolidated Balance Sheets and dividend
income is included in Reserve income in the Consolidated Statements of Operations.

Available-for-salesecurities segregated for the benefit of stablecoin holders

As of December 31, 2022, the Company held debt securities classified as
available-for-sale, which were segregated and held for the exclusive benefit of stablecoin holders and consisted of U.S. Treasury securities. Available-for-sale debt securities are recorded at fair value. Purchase premiums and discounts are recognized in Reserve income using the interest method over
the terms of the securities. Any unrealized holding gains or losses on available-for-sale debt securities are reported in accumulated other comprehensive income or loss,
which is a separate component of stockholders’ deficit, net of tax, until realized. See Note 4 — Available-for-salesecuritiesfor further
details.

Investments

Strategic investments

The Company has strategic investments in equity securities without a readily determinable fair value where the Company (1) holds less than 20% ownership in the
entity, and (2) does not exercise significant influence. The Company has elected to use the measurement alternative for its equity investments without a readily determinable fair value, pursuant to which these investments are recognized at
cost, less impairment, if any, and are remeasured through earnings when there is an observable price change in orderly transactions involving the same or similar investment in the same issuer. The Company recognizes impairment losses on strategic
investments in Other income (expense), netin the Consolidated Statements of Operations.