Company: CRCL
Filing Date: 2025-02-13
Form Type: DRS/A
Source: 0000950123-25-001965
Chunk: 318

Company: Circle Internet Group, Inc.
Filing Date: 2025-02-13
Form: DRS/A
Chunk 318
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, 2023, the FASB issued Accounting Standards Update No. 2023-08, Intangibles – Goodwill and Other –
Crypto Assets (“ASU 2023-08”) to improve the accounting for, and disclosure of, certain crypto assets. ASU 2023-08 requires an entity to measure
those crypto assets at fair value each reporting period with changes in fair value recognized in net income. The amendments also improve the information provided to investors about an entity’s crypto asset holdings by requiring disclosure about
significant holdings, contractual sale restrictions, and changes during the reporting period. The new standard is effective for fiscal years beginning after December 15, 2024, including interim periods within those fiscal years. The Company elected
to early-adopt ASU 2023-08 in the fiscal year beginning January 1, 2024 including the interim periods within 2024. In connection with the adoption, the Company expects to record an increase of $6.9 million to Digital assets, before taxes, and a
corresponding credit to opening retained earnings at January 1, 2024.

In December, 2023, the FASB issued Accounting Standards Update No. 2023-09, Improvements to
Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 includes amendments to income tax disclosures primarily related to the effective tax rate reconciliation and income taxes paid. The new standard is effective prospectively for the Company
for its fiscal year beginning January 1, 2025, with early adoption permitted. The Company is currently evaluating the impact of adopting the standard on the Company’s consolidated financial statements.

3. Acquisitions and divestitures

Acquisitions

Centre Consortium, LLC

In August 2023, the Company acquired the remaining
outstanding 50% equity interest in Centre Consortium, LLC (“Centre”) from a digital asset exchange (the “Centre Acquisition”). Total consideration for the Centre Acquisition was $209.9 million consisting of approximately 8.4
million common shares of the Company

F-24

CONFIDENTIAL TREATMENT REQUESTED BY CIRCLE INTERNET GROUP, INC. PURSUANT TO 17 C.F.R. § 200.83 measured at fair value. Upon completion of the Centre Acquisition, Centre became an indirect wholly-owned consolidated subsidiary of the Company. In December 2023, the Company dissolved Centre, and its net assets were distributed to another wholly-owned subsidiary of the Company