Company: CRCL
Filing Date: 2025-08-04
Form Type: DRS
Source: 0000950123-25-006942
Chunk: 382

Company: Circle Internet Group, Inc.
Filing Date: 2025-08-04
Form: DRS
Chunk 382
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 and tested digital assets for impairment by comparing the digital asset’s fair value to its carrying value and recognized an impairment loss whenever the carrying value exceeded quoted market prices of the respective digital asset during the period. Company owned digital assets and digital assets held as collateral were reflected within DigitalAssets on the Consolidated Balance Sheets. Impairment losses are reflected within Digital assets (gains) losses and impairmentin the Consolidated Statements of Operations. Digital Assets related to Lending Services The Company enters into Circle stablecoin lending arrangements. Loan fee income earned from lending activities are calculated using the effective interest method and are included in Other revenue, in the Consolidated Statements of Operations. In connection with Circle stablecoins lent to its borrowers, the Company recognizes Stablecoins receivable, neton the Consolidated Balance Sheets. Stablecoins receivable are recorded at amortized F-44

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

cost, net of any allowance for credit losses, if applicable. An impairment is recognized if it is probable that the Company will be unable to collect all amounts due according to the contractual
terms of the agreement.

In connection with certain lending, the Company may receive Bitcoin as collateral into its custody account, which is included in
Digital assetson the Consolidated Balance Sheets. Refer to Digital Assets above andDerivative Contracts, including Embedded Derivatives below for further information.

Deposits from Stablecoin Holders

Funds received
from customers from the issuance of Circle stablecoins represent claims which are reflected as a liability classified as Deposits from stablecoin holderson the Consolidated Balance Sheets. As a licensed money transmitter and regulated
Electronic Money Institution, Circle is obligated to redeem all Circle stablecoins presented by Circle Mint customers on a one for one basis for U.S. dollars or euros, as applicable, except in limited circumstances, such as when prohibited by law or
court order or instances where fraud is suspected. As such, the Company does not have an unconditional right to deny Circle stablecoin redemption requests from Circle Mint customers. With the exception of general stablecoin holders subject to
specific regulatory requirements such as those in the European Union, the Company does not redeem Circle stablecoins from stablecoin holders who are not Circle Mint customers. However, Circle stablecoins are supported by numerous global digital
asset exchanges and marketplaces, including neo-banks, brokerages, payment providers, remittance providers, superapps and commerce companies,