Company: CRCL
Filing Date: 2025-04-01
Form Type: S-1
Source: 0001193125-25-070481
Chunk: 150

Company: Circle Internet Group, Inc.
Filing Date: 2025-04-01
Form: S-1
Chunk 150
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 to a
$12.0 million decrease in transaction services revenue as our legacy transaction services products have been discontinued, a $7.5 million decrease in treasury services revenue as the Circle Yield product offering has been terminated, and a $2.8
million decrease in other revenue as our SeedInvest crowdfunding services have ceased. This was partially offset by a $6.0 million increase in revenues related to integration services.

Distribution, transaction, and other costs

Distribution and transaction costs. Distribution and transaction costs increased by $291.0 million, or 40.4%, for the year ended December 31, 2024, compared to the year ended December 31, 2023, primarily driven by a $216.6 million increase in
distribution costs paid to Coinbase as a combined result of increased reserve income and Coinbase’s increased on-platform balances, along with a $74.1 million increase in other distribution incentive costs related to new strategic distribution
partnerships, including our upfront, one-time fee to Binance.

Distribution and transaction costs increased by $432.9 million, or 150.8%, for the year ended
December 31, 2023, compared to the year ended December 31, 2022, primarily driven by a $443.2 million increase in distribution costs paid to Coinbase as a result of increases in reserve income and a higher distribution cost to Coinbase as
a percentage of reserve income. The increase in the Coinbase distribution cost percentage is primarily driven by a change in the distribution costs payment calculation in August 2023 (when the Company entered into the Collaboration Agreement) to
utilize a fixed percentage of off-platform balances as opposed to a variable calculation of each party’s respective issuance or resale volume, as was the case under the previous agreements governing the operation of the Centre Consortium. This
was partially offset by a $9.9 million decrease in other USDC market making and distribution incentive costs.

Other costs. Other costs decreased by
$1.4 million or 17.2%, for the year ended December 31, 2024, compared to the year ended December 31, 2023, primarily driven by a $0.9 million decrease in the fees related to the discontinuation of our legacy transactions services products.

Other costs decreased by $14.5 million or 64.7%, for the year ended December 31, 2023, compared to the year ended December 31, 2022, primarily driven by a
$9.2 million decrease