Fair value measurements (Tables)

9 Months Ended

Sep. 30, 2025

Schedule of Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following table sets forth by level, within the fair value hierarchy, the Company’s assets and liabilities measured and recorded at fair value on a recurring basis. The carrying amounts of certain financial instruments, including cash and cash equivalents, accounts receivable, stablecoin receivables, prepaid expenses and other current assets, and accounts payable and accrued expenses approximate their fair values due to their short-term nature.


Table 10.1. Fair Value Hierarchy
(in thousands)	September 30, 2025						December 31, 2024
	Level 1		Level 2		Level 3		Level 1		Level 2		Level 3
Assets
Cash equivalents (1)	$	65,143,457	$	—	$	—	$	37,841,697	$	—	$	—
Digital assets	46,990		—		4,560		31,330		—		—
Digital financial assets	537		—		—		14,328		—		—
Investments - derivatives and embedded derivatives (2)(3)	—		2,538		—		—		9,332		—
Accounts receivable, net - embedded derivatives (4)	—		(548)		—		—		—		—
Total assets	$	65,190,984	$	1,990	$	4,560	$	37,887,355	$	9,332	$	—
Liabilities
Convertible debt, net of debt discount	$	—	$	—	$	149,094	$	—	$	—	$	40,717
Warrant liability	—		—		—		—		—		1,591
Total liabilities	$	—	$	—	$	149,094	$	—	$	—	$	42,308

(1) Included $64.2 billion and $37.5 billion of Circle Reserve Fund as of September 30, 2025 and December 31, 2024, respectively.

(2) The fair value measurement is based on the quoted market price of the underlying digital asset.

(3) Excluded the host contract balance of $1.2 million and $0.8 million as of September 30, 2025 and December 31, 2024, respectively.

(4) Excluded the host contract balance of $1.3 million as of September 30, 2025.

As of September 30, 2025, certain digital assets related to the blockchain rewards revenue earned during the three and nine months ended September 30, 2025 were classified as Level 3 within the fair value hierarchy due to the absence of quoted market prices, inherent lack of liquidity, and unobservable inputs.

Schedule of Roll-Forward of Fair Value for the Company’s Warrant Liabilities

The changes in carrying value of warrant liability are reflected in the following tables (in thousands):


Table 10.2. Changes in Carrying Value of Warrant Liability
Balance as of December 31, 2024	$	1,591
Warrants exercised	(1,591)

Balance as of September 30, 2025	$	—


Balance as of December 31, 2023	$	1,642
Fair value adjustment	(719)
Balance as of September 30, 2024	$	923

The changes in carrying value of convertible debt, net of debt discount are reflected in the following tables (in thousands):


Table 10.3. Changes in Carrying Value of Convertible Debt
Balance as of December 31, 2024	$	40,717
Net discount on convertible notes	642
Capitalized interest	334
Fair value adjustment	107,338
Fair value adjustment – credit risk	63
Balance as of September 30, 2025	$	149,094


Balance as of December 31, 2023	$	58,487
Net discount on convertible notes	857
Capitalized interest	479
Fair value adjustment	(12,167)
Fair value adjustment – credit risk	(1,034)
Conversion of convertible notes	(14,788)
Balance as of September 30, 2024	$	31,834

Schedule of Fair Value Measurement Inputs and Valuation Techniques

The following significant unobservable inputs were used in the valuation:


Table 10.4. Significant Unobservable Inputs
	September 30, 2025		December 31, 2024
Discount rate	7.5	%	7.5	%
Volatility	52.8	%	65.0	%
Risk-free rate	3.9	%	4.1	%

Circle Internet Group, Inc. 10-Q