Cover Page
Cover Page - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 26, 2023 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 001-40289 | |
Entry Registrant Name | Coinbase Global, Inc. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 46-4707224 | |
Title of 12(b) Security | Class A common stock, $0.00001 par value per share | |
Trading Symbol | COIN | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Central Index Key | 0001679788 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Current Fiscal Year End Date | --12-31 | |
Class A common stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 192,049,284 | |
Class B common stock | ||
Entity Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 47,196,267 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 5,100,799 | $ 4,425,021 |
Restricted cash | 26,319 | 25,873 |
Customer custodial funds | 3,474,489 | 5,041,119 |
Safeguarding customer crypto assets | 114,291,909 | 75,413,188 |
USDC | 400,799 | 861,149 |
Accounts and loans receivable, net of allowance | 397,466 | 404,376 |
Income tax receivable | 69,727 | 60,441 |
Prepaid expenses and other current assets | 157,714 | 217,048 |
Total current assets | 123,919,222 | 86,448,215 |
Crypto assets held | 455,986 | 424,393 |
Lease right-of-use assets | 15,412 | 69,357 |
Property and equipment, net | 202,274 | 171,853 |
Goodwill | 1,139,670 | 1,073,906 |
Intangible assets, net | 94,935 | 135,429 |
Other non-current assets | 1,478,096 | 1,401,720 |
Total assets | 127,305,595 | 89,724,873 |
Current liabilities: | ||
Customer custodial cash liabilities | 3,474,489 | 4,829,587 |
Safeguarding customer crypto liabilities | 114,291,909 | 75,413,188 |
Accounts payable | 36,744 | 56,043 |
Accrued expenses and other current liabilities | 374,374 | 331,236 |
Crypto asset borrowings | 109,255 | 151,505 |
Lease liabilities, current | 12,015 | 33,734 |
Total current liabilities | 118,298,786 | 80,815,293 |
Lease liabilities, non-current | 5,690 | 42,044 |
Long-term debt | 3,076,599 | 3,393,448 |
Other non-current liabilities | 3,395 | 19,531 |
Total liabilities | 121,384,470 | 84,270,316 |
Commitments and contingencies (Note 20) | ||
Stockholders’ equity: | ||
Additional paid-in capital | 4,418,327 | 3,767,686 |
Accumulated other comprehensive loss | (44,113) | (38,606) |
Retained earnings | 1,546,909 | 1,725,475 |
Total stockholders’ equity | 5,921,125 | 5,454,557 |
Total liabilities and stockholders’ equity | 127,305,595 | 89,724,873 |
Class A common stock | ||
Stockholders’ equity: | ||
Common stock | 2 | 2 |
Class B common stock | ||
Stockholders’ equity: | ||
Common stock | $ 0 | $ 0 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
Class A common stock | ||
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, authorized (in shares) | 10,000,000,000 | 10,000,000,000 |
Common stock, issued (in shares) | 191,973,000 | 182,796,000 |
Common stock, outstanding (in shares) | 191,973,000 | 182,796,000 |
Class B common stock | ||
Common stock, par value (in dollars per share) | $ 0.00001 | $ 0.00001 |
Common stock, authorized (in shares) | 500,000,000 | 500,000,000 |
Common stock, issued (in shares) | 47,196,000 | 48,070,000 |
Common stock, outstanding (in shares) | 47,196,000 | 48,070,000 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Revenue: | ||||
Revenue | $ 674,148 | $ 590,339 | $ 2,154,588 | $ 2,565,100 |
Operating expenses: | ||||
Transaction expense | 90,577 | 101,876 | 295,146 | 546,889 |
Technology and development | 322,756 | 556,338 | 1,001,454 | 1,736,251 |
Sales and marketing | 78,178 | 75,888 | 226,007 | 416,986 |
General and administrative | 252,630 | 339,157 | 760,379 | 1,222,904 |
Restructuring | (860) | (1,232) | 142,594 | 41,221 |
Crypto asset impairment, net | 7,180 | 12,150 | 17,089 | 654,962 |
Other operating expense (income), net | 3,512 | 62,646 | (10,806) | 101,223 |
Total operating expenses | 753,973 | 1,146,823 | 2,431,863 | 4,720,436 |
Operating loss | (79,825) | (556,484) | (277,275) | (2,155,336) |
Interest expense | 20,821 | 21,507 | 64,029 | 67,301 |
Other (income) expense, net | (135,307) | 65,699 | (131,606) | 271,067 |
Income (loss) before income taxes | 34,661 | (643,690) | (209,698) | (2,493,704) |
Provision for (benefit from) income taxes | 36,926 | (99,055) | (31,132) | (425,756) |
Net loss | (2,265) | (544,635) | (178,566) | (2,067,948) |
Net loss attributable to common stockholders: | ||||
Basic | (2,265) | (544,635) | (178,566) | (2,067,948) |
Diluted | $ (2,265) | $ (544,635) | $ (178,566) | $ (2,073,343) |
Net loss per share attributable to common stockholders: | ||||
Basic (in dollars per share) | $ (0.01) | $ (2.43) | $ (0.76) | $ (9.37) |
Diluted (in dollars per share) | $ (0.01) | $ (2.43) | $ (0.76) | $ (9.39) |
Weighted-average shares of common stock used to compute net loss per share attributable to common stockholders: | ||||
Basic (in shares) | 237,270 | 223,916 | 234,479 | 220,816 |
Diluted (in shares) | 237,270 | 223,916 | 234,479 | 220,856 |
Net revenue | ||||
Revenue: | ||||
Revenue | $ 623,004 | $ 576,375 | $ 2,021,902 | $ 2,543,869 |
Other revenue | ||||
Revenue: | ||||
Revenue | $ 51,144 | $ 13,964 | $ 132,686 | $ 21,231 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (2,265) | $ (544,635) | $ (178,566) | $ (2,067,948) |
Other comprehensive loss | ||||
Translation adjustment, net of tax | (10,321) | (18,310) | (5,507) | (33,098) |
Comprehensive loss | $ (12,586) | $ (562,945) | $ (184,073) | $ (2,101,046) |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-In Capital | Accumulated Other Comprehensive Loss | Retained Earnings |
Beginning balance (in shares) at Dec. 31, 2021 | 217,117 | ||||
Beginning balance at Dec. 31, 2021 | $ 6,381,689 | $ 2 | $ 2,034,658 | $ (3,395) | $ 4,350,424 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock options, net of repurchases (in shares) | 3,052 | ||||
Issuance of common stock upon exercise of stock options, net of repurchases | 45,260 | 45,260 | |||
Stock-based compensation expense | 1,232,815 | 1,232,815 | |||
Issuance of equity instruments as consideration for business combination (in shares) | 1,663 | ||||
Issuance of equity instruments as consideration for business combination | 314,356 | 314,356 | |||
Issuance of common stock upon settlement of RSUs and restricted common stock, net of shares withheld (in shares) | 4,618 | ||||
Issuance of common stock upon settlement of RSUs and restricted common stock, net of shares withheld | (268,746) | (268,746) | |||
Issuance of common stock under the Employee Stock Purchase Plan (shares) | 155 | ||||
Issuance of common stock under the ESPP | 14,863 | 14,863 | |||
Other | 7,124 | 7,124 | |||
Comprehensive loss | (33,098) | (33,098) | |||
Net loss | (2,067,948) | (2,067,948) | |||
Ending balance (in shares) at Sep. 30, 2022 | 226,605 | ||||
Ending balance at Sep. 30, 2022 | 5,626,315 | $ 2 | 3,380,330 | (36,493) | 2,282,476 |
Beginning balance (in shares) at Jun. 30, 2022 | 224,398 | ||||
Beginning balance at Jun. 30, 2022 | 5,813,389 | $ 2 | 3,004,459 | (18,183) | 2,827,111 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock options, net of repurchases (in shares) | 812 | ||||
Issuance of common stock upon exercise of stock options, net of repurchases | 10,318 | 10,318 | |||
Stock-based compensation expense | 417,721 | 417,721 | |||
Issuance of common stock upon settlement of RSUs and restricted common stock, net of shares withheld (in shares) | 1,395 | ||||
Issuance of common stock upon settlement of RSUs and restricted common stock, net of shares withheld | (55,613) | (55,613) | |||
Other | 3,445 | 3,445 | |||
Comprehensive loss | (18,310) | (18,310) | |||
Net loss | (544,635) | (544,635) | |||
Ending balance (in shares) at Sep. 30, 2022 | 226,605 | ||||
Ending balance at Sep. 30, 2022 | 5,626,315 | $ 2 | 3,380,330 | (36,493) | 2,282,476 |
Beginning balance (in shares) at Dec. 31, 2022 | 230,866 | ||||
Beginning balance at Dec. 31, 2022 | $ 5,454,557 | $ 2 | 3,767,686 | (38,606) | 1,725,475 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock options, net of repurchases (in shares) | 1,883 | 1,840 | |||
Issuance of common stock upon exercise of stock options, net of repurchases | $ 29,384 | 29,384 | |||
Stock-based compensation expense | 661,510 | 661,510 | |||
Issuance of equity instruments as consideration for business combination (in shares) | 961 | ||||
Issuance of equity instruments as consideration for business combination | 44,995 | 44,995 | |||
Issuance of common stock upon settlement of RSUs and restricted common stock, net of shares withheld (in shares) | 5,248 | ||||
Issuance of common stock upon settlement of RSUs and restricted common stock, net of shares withheld | (183,962) | (183,962) | |||
Issuance of common stock under the Employee Stock Purchase Plan (shares) | 254 | ||||
Issuance of common stock under the ESPP | 12,381 | 12,381 | |||
Stock-based compensation expense recognized in relation to restructuring | 84,042 | 84,042 | |||
Other | 2,291 | 2,291 | |||
Comprehensive loss | (5,507) | (5,507) | |||
Net loss | (178,566) | (178,566) | |||
Ending balance (in shares) at Sep. 30, 2023 | 239,169 | ||||
Ending balance at Sep. 30, 2023 | 5,921,125 | $ 2 | 4,418,327 | (44,113) | 1,546,909 |
Beginning balance (in shares) at Jun. 30, 2023 | 236,888 | ||||
Beginning balance at Jun. 30, 2023 | 5,754,703 | $ 2 | 4,239,319 | (33,792) | 1,549,174 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Issuance of common stock upon exercise of stock options, net of repurchases (in shares) | 660 | ||||
Issuance of common stock upon exercise of stock options, net of repurchases | 11,383 | 11,383 | |||
Stock-based compensation expense | 233,904 | 233,904 | |||
Issuance of common stock upon settlement of RSUs and restricted common stock, net of shares withheld (in shares) | 1,621 | ||||
Issuance of common stock upon settlement of RSUs and restricted common stock, net of shares withheld | (68,570) | (68,570) | |||
Other | 2,291 | 2,291 | |||
Comprehensive loss | (10,321) | (10,321) | |||
Net loss | (2,265) | (2,265) | |||
Ending balance (in shares) at Sep. 30, 2023 | 239,169 | ||||
Ending balance at Sep. 30, 2023 | $ 5,921,125 | $ 2 | $ 4,418,327 | $ (44,113) | $ 1,546,909 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Cash flows from operating activities | ||
Net loss | $ (178,566) | $ (2,067,948) |
Adjustments to reconcile net loss to net cash provided by (used in) operating activities: | ||
Depreciation and amortization | 110,157 | 113,721 |
Investment impairment expense | 9,062 | 70,866 |
Other impairment expense | 10,069 | 9,071 |
Stock-based compensation expense | 616,785 | 1,135,078 |
Restructuring stock-based compensation expense | 84,042 | 0 |
Provision for transaction losses and doubtful accounts | 10,356 | (7,599) |
Loss on disposal of property and equipment | 7,567 | 0 |
Deferred income taxes | (50,217) | (444,225) |
Unrealized loss on foreign exchange | 17,314 | 192,253 |
Fair value gain on foreign exchange derivatives | 0 | (22,935) |
Non-cash lease expense | 37,271 | 23,374 |
Change in fair value of contingent consideration | 436 | (7,175) |
(Gain) loss on investments | (49,301) | 1,118 |
Fair value (gain) loss on derivatives | (14,332) | 3,351 |
Amortization of debt discount and issuance costs | 6,665 | 7,042 |
Gain on extinguishment of long-term debt, net | (99,446) | 0 |
Realized loss on crypto futures contract | 43,339 | 0 |
Crypto asset impairment expense | 77,151 | 689,077 |
Crypto assets received as revenue | (299,304) | (376,990) |
Crypto asset payments for expenses | 185,149 | 332,897 |
Realized gain on crypto assets | (110,610) | (34,274) |
Changes in operating assets and liabilities: | ||
USDC | 464,728 | (298,236) |
Accounts and loans receivable | 81,317 | (21,520) |
Deposits in transit | (28,055) | 53,731 |
Income taxes, net | (157) | 4,785 |
Other current and non-current assets | 21,244 | (104,801) |
Accounts payable | (18,745) | 24,667 |
Lease liabilities | (36,045) | (7,758) |
Other current and non-current liabilities | 30,263 | (107,553) |
Net cash provided by (used in) operating activities | 928,137 | (839,983) |
Cash flows from investing activities | ||
Purchase of property and equipment | (533) | (3,747) |
Proceeds from sale of property and equipment | 275 | 0 |
Capitalized internal-use software development costs | (51,638) | (47,831) |
Business combinations, net of cash acquired | (30,730) | (186,150) |
Purchase of investments | (8,459) | (57,716) |
Proceeds from settlement of investments | 3,266 | 1,497 |
Loans originated | (348,252) | (189,137) |
Proceeds from repayment of loans | 242,384 | 290,928 |
Assets pledged as collateral | (18,295) | 0 |
Assets pledged as collateral returned | 55,989 | 0 |
Settlement of crypto futures contract | (43,339) | 0 |
Purchase of crypto assets held | (150,827) | (1,339,689) |
Disposal of crypto assets held | 265,042 | 894,147 |
Net cash used in investing activities | (85,117) | (637,698) |
Cash flows from financing activities | ||
Issuance of common stock upon exercise of stock options, net of repurchases | 27,653 | 40,978 |
Taxes paid related to net share settlement of equity awards | (183,962) | (268,746) |
Proceeds received under the ESPP | 14,254 | 16,064 |
Other financing activities | 0 | 3,679 |
Customer custodial cash liabilities | (1,349,666) | (3,977,293) |
Repayment of long-term debt | (222,664) | 0 |
Assets received as collateral | 5,324 | 0 |
Assets received as collateral returned | (4,585) | 0 |
Proceeds from short-term borrowings | 31,640 | 149,400 |
Repayments of short-term borrowings | (52,122) | (170,000) |
Net cash used in financing activities | (1,734,128) | (4,205,918) |
Net decrease in cash, cash equivalents, and restricted cash | (891,108) | (5,683,599) |
Effect of exchange rates on cash, cash equivalents, and restricted cash | (27,353) | (376,261) |
Cash, cash equivalents, and restricted cash, beginning of period | 9,429,646 | 17,680,662 |
Cash, cash equivalents, and restricted cash, end of period | 8,511,185 | 11,620,802 |
Cash, cash equivalents, and restricted cash consisted of the following: | ||
Cash and cash equivalents | 5,100,799 | 5,006,584 |
Restricted cash | 26,319 | 23,113 |
Customer custodial funds | 3,384,067 | 6,591,105 |
Total cash, cash equivalents, and restricted cash | 8,511,185 | 11,620,802 |
Supplemental disclosure of cash flow information | ||
Cash paid during the period for interest | 42,913 | 43,630 |
Cash paid during the period for income taxes | 19,676 | 17,762 |
Operating cash outflows for amounts included in the measurement of operating lease liabilities | 11,173 | 10,845 |
Supplemental schedule of non-cash investing and financing activities | ||
Unsettled purchases of property and equipment | 0 | 177 |
Right-of-use assets obtained in exchange for operating lease obligations | 447 | 3,059 |
Non-cash consideration paid for business combinations | 51,494 | 324,925 |
Purchase of crypto assets and investments with non-cash consideration | 11,234 | 17,898 |
Disposal of crypto assets and investments for non-cash consideration | 8,616 | 0 |
Redemption of investments with non-cash consideration | 0 | 5,000 |
Crypto assets borrowed | 399,460 | 728,490 |
Crypto assets borrowed repaid with crypto assets | 437,254 | 1,182,479 |
Crypto loans originated | 409,027 | 0 |
Crypto loans repaid | 446,095 | 0 |
Realized gain on crypto assets held as investments | 48,491 | 0 |
Non-cash assets pledged as collateral | 128,587 | 0 |
Non-cash assets pledged as collateral returned | 140,818 | 0 |
Non-cash assets received as collateral | 242,883 | 0 |
Non-cash assets received as collateral returned | $ 237,681 | $ 0 |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF OPERATIONS | NATURE OF OPERATIONS Coinbase, Inc. was founded in 2012. In April 2014, in connection with a corporate reorganization, Coinbase, Inc. became a wholly-owned subsidiary of Coinbase Global, Inc. (together with its consolidated subsidiaries, the “Company”). The Company operates globally and is a leading provider of end-to-end financial infrastructure and technology for the cryptoeconomy. The Company offers consumers the primary financial account for the cryptoeconomy, institutions a state of the art marketplace with a deep pool of liquidity for transacting in crypto assets, and developers technology and services that enable them to build crypto-based applications and securely accept crypto assets as payment. The Company is a remote-first company. Accordingly, the Company does not maintain a headquarters or principal executive offices. Substantially all of the Company’s executive team meetings are held virtually, with meetings occasionally held in-person at locations that are either not in the Company’s offices or in various of the Company’s offices distributed around the world. The Company holds all of its stockholder meetings virtually. On April 14, 2021, the Company completed the direct listing of its Class A common stock on the Nasdaq Global Select Market (the “Direct Listing”). |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of presentation and principles of consolidation The accompanying condensed consolidated financial statements of the Company are unaudited. These unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) on the same basis as the audited consolidated financial statements and in management’s opinion, reflect all the adjustments, consisting only of normal, recurring adjustments, that are necessary for the fair statement of the Company’s condensed consolidated financial statements for the periods presented. The unaudited condensed consolidated results of operations for the three and nine months ended September 30, 2023 are not necessarily indicative of the results to be expected for the full year or any other period. These condensed consolidated financial statements a nd accompanying notes should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s annual report on Form 10-K for the year ended December 31, 2022 filed with the Securities and Exchange Commission (the “SEC”) on February 21 , 2023 (the “Annual Report”). Thes e condensed consolidated financial statements include the accounts of the Company and its subsidiaries. The Company’s subsidiaries are entities in which the Company holds, directly or indirectly, more than 50% of the voting rights, or where it exercises control. Certain subsidiaries of the Company have a basis of presentation different from GAAP. For the purposes of these unaudited condensed consolidated financial statements, the basis of presentation of such subsidiaries is converted to GAAP. All intercompany accounts and transactions have been eliminated in consolidation. There were no changes to the significant accounting policies or recent accounting pronouncements that were disclosed in Note 2. Summary of Significant Accounting Policies to the audited consolidated financial statements included in the Annual Report, other than as discussed below. Reclassifications Certain prior period amounts have been reclassified in order to conform with the current period presentation. These reclassifications have no impact on the Company’s previously reported consolidated net loss. Use of estimates The preparation of th e condensed consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions in the Company’s condensed consolidated financial statements and notes thereto. Significant estimates and assumptions include the determination of the recognition, measurement, and valuation of current and deferred income taxes; the fair value of performance stock-based awards issued; the useful lives of long-lived assets; the impairment of long-lived assets; the valuation of privately-held strategic investments, including impairments; the fair value of safeguarding customer crypto assets and liabilities; the fair value of assets acquired and liabilities assumed in business combinations; the fair value of derivatives and related hedges; assessing the likelihood of adverse outcomes from claims and disputes; and loss provisions. Actual results and outcomes may differ from management’s estimates and assumptions due to risks and uncertainties. To the extent that there are material differences between these estimates and actual results, the Comp any’s condensed consolidated financial statements will be affected. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the result of which forms the basis for making judgments about the carrying values of assets and liabilities. Customer custodial funds and customer custodial cash liabilities Customer custodial funds represent restricted cash and cash equivalents maintained in segregated Company bank accounts that are held for the exclusive benefit of customers and deposits in transit from payment processors and financial institutions. Under GAAP, the balance in these accounts that exceeds customer custodial cash liabilities is presented within cash and cash equivalents. Customer custodial cash liabilities represent the obligation to return cash deposits held by customers in their fiat wallets and unsettled fiat deposits and withdrawals. Deposits in transit represent settlements from third-party payment processors and banks for customer transactions. Deposits in transit are typically received within five business days of the transaction date. The Company establishes withdrawal-based limits in order to mitigate potential losses by preventing customers from withdrawing the crypto asset to an external blockchain address until the deposit settles. In certain jurisdictions, deposits in transit qualify as eligible liquid assets to meet regulatory requirements to fulfill the Company’s direct obligations under customer custodial cash liabilities. The Company restricts the use of the assets underlying the customer custodial funds to meet regulatory requirements and classifies the assets as current based on their purpose and availability to fulfill the Company’s direct obligation under customer custodial cash liabilities. Certain jurisdictions where the Company operates require the Company to hold eligible liquid assets, as defined by applicable regulatory requirements and commercial law in these jurisdictions, equal to at least 100% of the aggregate amount of all customer custodial cash liabilities. Depending on the jurisdiction, eligible liquid assets can include cash and cash equivalents, customer custodial funds, and certain other customer receivables. As of September 30, 2023 and December 31, 2022, the Company’s eligible liquid assets were greater than the aggregate amount of customer custodial cash liabilities. Concentration of credit risk The Company’s cash and cash equivalents, restricted cash, customer custodial funds, and accounts and loans receivable are potentially subject to concentration of credit risk. Cash and cash equivalents, restricted cash, and customer custodial funds are primarily placed with financial institutions which are of high credit quality. The Company invests cash and cash equivalents, and customer custodial funds primarily in highly liquid, highly rated instruments which are uninsured. The Company may also have corporate deposit balances with financial institutions which exceed the Federal Deposit Insurance Corporation insurance limit of $250,000. The Company has not experienced losses on these accounts and does not believe it is exposed to any significant credit risk with respect to these accounts. The Company also holds cash and crypto at crypto trading venues and performs a regular assessment of these crypto trading venues as part of its risk management process. The Company held $400.8 million and $861.1 million of USDC as of September 30, 2023 and December 31, 2022, respectively. The issuer of USDC reported that, as of September 30, 2023, underlying reserves were held in cash, short-duration U.S. Treasuries, and overnight U.S. Treasury repurchase agreements within segregated accounts for the benefit of USDC holders. As of September 30, 2023 and December 31, 2022, the Company had two and one counterparties, respectively, who accounted for more than 10% of the Company’s accounts and loans receivable, net. See Note 11. Collateral for details on collateralization of loans receivable. During the three and nine months ended September 30, 2023 and September 30, 2022, one and no counterparty accounted for more than 10% of total revenue, respectively. Recent accounting pronouncements Accounting pronouncements pending adoption On March 28, 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2023-01, Leases (Topic 842): Common Control Arrangements (“ASU 2023-01”). The amendments in ASU 2023-01 improve current GAAP by clarifying the accounting for leasehold improvements associated with common control leases, thereby reducing diversity in practice. Additionally, the amendments provide investors and other allocators of capital with financial information that better reflects the economics of those transactions. The new standard is effective for the Company for its fiscal year beginning January 1, 2024, with early adoption permitted. The Company is currently evaluating the impact of adopting the standard. On June 30, 2022, FASB issued Accounting Standards Update No. 2022-03, Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (“ASU 2022-03”). ASU 2022-03 clarifies that a contractual sale restriction prohibiting the sale of an equity security is a characteristic of the reporting entity holding the equity security and is not included in the equity security's unit of account. The standard requires specific disclosures related to equity securities that are subject to contractual sale restrictions, including (1) the fair value of such equity securities reflected in the balance sheet, (2) the nature and remaining duration of the corresponding restrictions, and (3) any circumstances that could cause a lapse in the restrictions. The new standard is effective for the Company for its fiscal year beginning January 1, 2024, with early adoption permitted. The Company is currently evaluating the impact of adopting the standard. |
RESTRUCTURING
RESTRUCTURING | 9 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING | RESTRUCTURING 2023 Restructuring In January 2023, the Company announced and completed a restructuring impacting approximately 21% of the Company’s headcount as of December 31, 2022 (the “2023 Restructuring”). The 2023 Restructuring was intended to manage the Company’s operating expenses in response to the ongoing market conditions impacting the cryptoeconomy and ongoing business prioritization efforts. As a result, approximately 950 employees in various departments and locations were terminated. As part of their termination, they were given separation pay and other personnel benefits. The Company does not expect to incur any additional charges in connection with the 2023 Restructuring and the cash payments associated with the restructuring were completed during the third quarter of 2023. The following expenses were recognized within restructuring expenses in the condensed consolidated statements of operations for the three and nine months ended September 30, 2023 (in thousands): Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 Separation pay (1) $ (860) $ 56,733 Stock-based compensation (2) — 84,042 Other personnel costs — 1,819 Total $ (860) $ 142,594 __________________ (1) Reduction of $0.9 million during the three months ended September 30, 2023 was due to the release of accruals for certain separation pay expenses recorded as of June 30, 2023 which were not utilized. (2) Represents stock-based compensation expenditures for the nine months ended September 30, 2023 relating to the acceleration of the vesting of outstanding equity awards in accordance with the terms of such awards. The following table summarizes the balance of the 2023 Restructuring reserve and the changes in the reserve as of and for the nine months ended September 30, 2023 (in thousands): Expenses Incurred (1) Payments Adjustments (2) Accrued Balance as of September 30, 2023 Separation pay $ 57,745 $ (56,733) $ (1,012) $ — Other personnel costs 2,702 (1,819) (883) — Total $ 60,447 $ (58,552) $ (1,895) $ — _________________ (1) Excludes stock-based compensation as it was not reflected in the Company’s restructuring reserve on the condensed consolidated balance sheets. (2) Reductions of $1.0 million and $0.9 million during the nine months ended September 30, 2023 were due to the release of accruals for certain separation pay expenses and other personnel costs, respectively, recorded as of March 31, 2023, which were not utilized. 2022 Restructuring In June 2022, the Company announced and completed a restructuring impacting approximately 18% of the Company’s headcount as of June 10, 2022 (the “2022 Restructuring”). This strategic reduction of the existing global workforce was intended to manage the Company’s operating expenses in response to market conditions and ongoing business prioritization efforts. As a result, approximately 1,100 employees in various departments and locations were terminated. As part of their termination, they were given separation pay and other personnel benefits. The Company did not incur any additional charges related to the 2022 Restructuring. The cash payments associated with the 2022 Restructuring were substantially completed during the third quarter of 2022 and the remaining balance was fully paid out during the year ended December 31, 2022. The following expenses were recognized within restructuring expenses in the condensed consolidated statements of operations for the three and nine months ended September 30, 2022 (in thousands): Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 Separation pay $ — $ 39,259 Other personnel costs (1) (1,232) 1,962 Total $ (1,232) $ 41,221 _________________ (1) Reduction of $1.2 million during the three months ended September 30, 2023 was due to the release of accruals for certain other personnel costs recorded as of June 30, 2022 which were not utilized. The following table summarizes the balance of the 2022 Restructuring reserve and the changes in the reserve as of and for the nine months ended September 30, 2022 (in thousands). The associated liability that remained outstanding as of September 30, 2022 was recorded in accrued expenses and other current liabilities on the condensed consolidated balance sheets: Expenses Incurred Payments Adjustments Accrued Balance as of September 30, 2022 Separation pay $ 39,259 $ (37,940) $ — $ 1,319 Other personnel costs 3,194 (1,480) (1,232) 482 Total $ 42,453 $ (39,420) $ (1,232) $ 1,801 |
ACQUISITIONS
ACQUISITIONS | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
ACQUISITIONS | ACQUISITIONS2023 acquisitions One River Digital Asset Management, LLC On March 3, 2023 , the Company completed the acquisition of One River Digital Asset Management, LLC. (“ORDAM”) by acquiring all issued and outstanding membership units of ORDAM. ORDAM is an institutional digital asset manager which is registered as an investment adviser with the SEC. The Company believes the acquisition aligns with the Company’s long-term strategy to unlock further opportunities for institutions to participate in the cryptoeconomy. Prior to the acquisition, the Company held a minority ownership stake in ORDAM, which was accounted for as a cost method investment. In accordance with ASC 805, Business Combinations , the acquisition was accounted for as a business combination achieved in stages under the acquisition method. Accordingly, the cost method investment was remeasured to fair value as of the acquisition date. As the fair value of the cost method investment was equal to its carrying value, no gain or loss on remeasurement was recorded on the acquisition date. The purchase consideration was allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date with the excess recorded as goodwill. The goodwill balance is primarily attributed to the assembled workforce, market presence, synergies, and time-to-market advantages. The final allocation of purchase consideration to assets and liabilities remains in process as the Company continues to evaluate certain balances, estimates, and assumptions during the measurement period (up to one year from the acquisition date). Any changes in the fair value of the assets acquired and liabilities assumed during the measurement period may result in adjustments to goodwill. The total consideration transferred in the acquisition was $96.8 million, consisting of the following (in thousands): Cash $ 30,830 Cash payable 1,005 Previously-held interest on acquisition date 20,000 Class A common stock of the Company 44,995 Total purchase consideration $ 96,830 Included in the purchase consideration are $6.0 million in cash and 119,991 shares of the Company’s Class A common stock that are subject to an indemnity holdback. The cash and shares subject to the indemnity holdback will be released 18 months after the closing date of the transaction. The results of operations and the provisional fair values of the assets acquired and liabilities assumed have been included in the condensed consolidated financial statements as of the date of acquisition. The following table summarizes the preliminary fair values of assets acquired and liabilities assumed as of the date of acquisition (in thousands): Cash and cash equivalents $ 100 Accounts and loans receivable, net of allowance 425 Prepaid expenses and other current assets 134 Goodwill 65,764 Intangible assets, net 21,100 Other non-current assets 9,911 Total assets 97,434 Accounts payable 604 Total liabilities 604 Net assets acquired $ 96,830 The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in thousands, except for years data): Fair Value Useful Life at Acquisition (in years) Licenses $ 1,100 Indefinite Customer relationships 17,100 6 In-process research and development ("IPR&D") 2,900 N/A Customer relationships will be amortized on a straight-line basis over their respective useful lives to general and administrative expense. The licenses have an indefinite useful life and will not be amortized. Management applied significant judgment in determining the fair value of intangible assets, which involved the use of estimates and assumptions with respect to forecasted revenues and expenses, and costs to recreate the IPR&D and obtain the licenses. Total acquisition costs of $2.6 million were incurred related to the acquisition, which were recognized as an expense and included in general and administrative expenses in the condensed consolidated statements of operations. Unbound Security, Inc. On January 4, 2022, the Company completed the acquisition of Unbound Security, Inc. (“Unbound”) by acquiring all issued and outstanding shares of capital stock and stock options of Unbound. Unbound is a pioneer in a number of cryptographic security technologies, which the Company believes will play a key role in the Company’s product and security roadmap. In accordance with ASC 805, Business Combinations , the acquisition was accounted for as a business combination under the acquisition method. The purchase consideration was allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date with the excess recorded as goodwill, none of which is expected to be deductible for tax purposes. The goodwill balance is primarily attributed to the assembled workforce, synergies, and the use of purchased technology to develop future products and technologies. During the year ended December 31, 2022, a measurement period adjustment associated with deferred tax assets was recorded, resulting in an increase in other non-current assets of $4.1 million and a corresponding reduction in goodwill. The total consideration transferred in the acquisition was $258.0 million, consisting of the following (in thousands): Cash $ 151,424 Cash payable 126 Class A common stock of the Company 103,977 RSUs for shares of the Company’s Class A common stock 2,457 Total purchase consideration $ 257,984 Included in the purchase consideration are $21.7 million in cash and 85,324 shares of the Company’s Class A common stock that are subject to an indemnity holdback. The cash and shares subject to the indemnity holdback were released within 18 months from the closing date of the transaction. The results of operations and the fair values of the assets acquired and liabilities assumed have been included in the condensed consolidated financial statements from the date of acquisition. The following table summarizes the preliminary fair values of assets acquired and liabilities assumed as of the date of acquisition (in thousands): Cash and cash equivalents $ 10,560 Restricted cash 573 Accounts and loans receivable, net of allowance 4,981 Prepaid expenses and other current assets 4,182 Lease right-of-use assets 1,059 Property and equipment, net 1,248 Goodwill 222,732 Intangible assets, net 28,500 Other non-current assets 3,476 Total assets 277,311 Accounts payable 719 Accrued expenses and other current liabilities 11,325 Lease liabilities 1,059 Other non-current liabilities 6,224 Total liabilities 19,327 Net assets acquired $ 257,984 The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in thousands, except for years data): Fair Value Useful Life at Acquisition (in Years) Developed technology $ 15,700 1 - 5 IPR&D 2,500 N/A Customer relationships 10,300 2 The intangible assets will be amortized on a straight-line basis over their respective useful lives to technology and development expenses for developed technology and general and administrative expenses for customer relationships. Amortization of the IPR&D will be recognized in technology and development expenses once the research and development is placed into service as internally developed software. Management applied significant judgment in determining the fair value of intangible assets, which involved the use of estimates and assumptions with respect to development costs and profit, costs to recreate customer relationships, market participation profit, and opportunity cost. Total acquisition costs of $3.0 million were incurred in relation to the acquisition, which were recognized as an expense and included in general and administrative expenses in the condensed consolidated statements of operations. The impact of this acquisition was not considered material to the Company’s condensed consolidated financial statements for the periods presented and pro forma financial information has not been provided. FairXchange, Inc. On February 1, 2022, the Company completed the acquisition of FairXchange, Inc. (“FairX”) by acquiring all issued and outstanding shares of capital stock, stock options and warrants of FairX. FairX is a derivatives exchange which is registered with the U.S. Commodity Futures Trading Commission as a designated contract market (“DCM”) and the Company believes it has been a key stepping stone on the Company’s path to offer crypto derivatives to consumers and institutional customers in the United States. In accordance with ASC 805, Business Combinations , the acquisition was accounted for as a business combination under the acquisition method. The purchase consideration was allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date with the excess recorded as goodwill, none of which is expected to be deductible for tax purposes. The goodwill balance is primarily attributed to the assembled workforce, market presence, synergies, and the use of purchased technology to develop future products and technologies. During the year ended December 31, 2022, a measurement period adjustment associated with deferred tax assets was recorded, resulting in an increase in other non-current assets of $0.3 million and a corresponding reduction in goodwill. The total consideration transferred in the acquisition was $275.1 million, consisting of the following (in thousands): Cash $ 56,726 Cash payable 10,442 Class A common stock of the Company - issued 174,229 Class A common stock of the Company - to be issued 33,693 Total purchase consideration $ 275,090 The aggregate purchase consideration includes 170,397 shares of the Company’s Class A common stock to be issued after the acquisition date. The fair value of these shares on the acquisition date is included in additional paid-in capital. Additionally, included in the purchase consideration are $4.7 million in cash and 83,035 shares of the Company’s Class A common stock that are subject to an indemnity holdback. The cash and shares remain subject to an indemnity holdback. The results of operations and the fair values of the assets acquired and liabilities assumed have been included in the condensed consolidated financial statements from the date of acquisition. The following table summarizes the preliminary fair values of assets acquired and liabilities assumed as of the date of acquisition (in thousands): Cash and cash equivalents $ 10,867 Accounts and loans receivable, net of allowance 411 Prepaid expenses and other current assets 20 Intangible assets, net 41,000 Goodwill 231,685 Other non-current assets 8,295 Total assets 292,278 Accounts payable 472 Accrued expenses and other current liabilities 5,796 Other non-current liabilities 10,920 Total liabilities 17,188 Net assets acquired $ 275,090 The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in thousands, except for years data): Fair Value Useful Life at Acquisition (in Years) DCM License $ 26,900 Indefinite Developed technology 10,700 5 Trading relationships 3,400 3 The developed technology and trading relationships will be amortized on a straight-line basis over their respective useful lives to technology and development expenses for developed technology and general and administrative for trading relationships. The DCM license has an indefinite useful life and will not be amortized. Management applied significant judgment in determining the fair value of intangible assets, which involved the use of estimates and assumptions with respect to forecasted revenues and expenses, development costs and profit, costs to recreate trading relationships, market participation profit, and opportunity cost. Total acquisition costs of $1.1 million were incurred related to the acquisition, which were recognized as an expense and included in general and administrative expenses in the condensed consolidated statements of operations. The impact of this acquisition was not considered material to the Company’s condensed consolidated financial statements for the periods presented and pro forma financial information has not been provided. |
REVENUE
REVENUE | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE Revenue recognition The Company determines revenue recognition from contracts with customers through the following steps : • identification of the contract, or contracts, with the customer; • identification of the performance obligations in the contract; • determination of the transaction price; • allocation of the transaction price to the performance obligations in the contract; and • recognition of the revenue when, or as, the Company satisfies a performance obligation. Revenue is recognized when control of the promised goods or services is transferred to the customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The following table presents revenue of the Company disaggregated by revenue source (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Net revenue Transaction revenue Consumer, net $ 274,505 $ 346,091 $ 936,944 $ 1,928,145 Institutional, net 14,070 19,777 53,442 105,973 Total transaction revenue 288,575 365,868 990,386 2,034,118 Subscription and services revenue Stablecoin revenue 172,357 76,858 522,650 99,977 Blockchain rewards 74,461 62,759 235,824 213,064 Interest income 39,467 24,920 131,360 44,769 Custodial fee revenue 15,805 14,532 49,839 68,404 Other subscription and services revenue 32,339 31,438 91,843 83,537 Total subscription and services revenue 334,429 210,507 1,031,516 509,751 Total net revenue 623,004 576,375 2,021,902 2,543,869 Other revenue Corporate interest and other income 51,144 13,964 132,686 21,231 Total other revenue 51,144 13,964 132,686 21,231 Total revenue $ 674,148 $ 590,339 $ 2,154,588 $ 2,565,100 Transaction revenue Consumer transaction revenue represents transaction fees earned from customers that are primarily individuals, while institutional transaction revenue represents transaction fees earned from institutional customers, such as hedge funds, family offices, principal trading firms, and financial institutions. The Company’s service is comprised of a single performance obligation to provide a crypto asset matching service when customers buy, sell or convert crypto assets, or trade derivatives. That is, the Company is an agent in transactions between customers and presents revenue for the fees earned on a net basis. Judgment is required in determining whether the Company is the principal or the agent in transactions between customers. The Company evaluates the presentation of revenue on a gross or net basis based on whether it controls the crypto asset provided before it is transferred to the customer (gross) or whether it acts as an agent by arranging for other customers to provide the crypto asset to the customer (net). The Company does not control the crypto asset being provided before it is transferred to the buyer, does not have inventory risk related to the crypto asset, and is not responsible for the fulfillment of the crypto asset. The Company also does not set the price for the crypto asset as the price is a market rate established by users of the platform. As a result, the Company acts as an agent in facilitating the ability for a customer to purchase crypto assets from another customer. The Company considers its performance obligation satisfied, and recognizes revenue, at the point in time the transaction is processed. Contracts with customers are usually open-ended and can be terminated by either party without a termination penalty. Therefore, contracts are defined at the transaction level and do not extend beyond the service already provided. The Company charges a fee at the transaction level. The transaction price, represented by the transaction fee, is calculated based on volume and varies depending on payment type and the value of the transaction. Crypto asset purchase or sale transactions executed by a customer on the Company’s platform is based on tiered pricing that is driven primarily by transaction volume processed for a specific historical period. The Company has concluded that this volume-based pricing approach does not constitute a future material right since the discount is within a range typically offered to a class of customers with similar volume. The transaction fee is collected from the customer at the time the transaction is executed. In certain instances, the transaction fee can be collected in crypto assets, with revenue measured based on the amount of crypto assets received and the fair value of the crypto assets at the time of the transaction. The transaction price includes estimates for reductions in revenue from transaction fee reversals that may not be recovered from customers. Such reversals occur when the customer disputes a transaction processed on their credit card or their bank account for a variety of reasons and seeks to have the charge reversed after the Company has processed the transaction. These amounts are estimated based upon the most likely amount of consideration to which the Company will be entitled. All estimates are based on historical experience and the Company’s best judgment at the time to the extent it is probable that a significant reversal of revenue recognized will not occur. All estimates of variable consideration are reassessed periodically. The total transaction price is allocated to the single performance obligation. While the Company recognizes transaction fee reversals as a reduction of net revenue, crypto asset losses related to those same transaction reversals are included in transaction expense. Stablecoin revenue Since 2018, the Company has earned income on fiat funds under an arrangement with the issuer of USDC which was included in interest income within subscriptions and services revenue. On August 18, 2023, the Company entered into an updated arrangement with the same counterparty. Pursuant to the arrangement, the Company earns a pro rata portion of income earned on USDC reserves based on the amount of USDC held on each respective party’s platform, and from the distribution and usage of USDC after certain expenses. Revenue derived by the Company from this arrangement is dependent on various factors including the balance of USDC on the Company’s platform, the total market capitalization of USDC, and the prevailing interest rate environment. The agreement is treated as an executory contract accounted for on an accrual basis. Prior period revenue recognized under the previous arrangement was reclassified to the stablecoin revenue line within subscription and services revenue, to conform to current period presentation. Blockchain rewards Blockchain rewards are primarily comprised of staking revenue, in which the Company participates in networks with proof-of-stake consensus algorithms through creating or validating blocks on the network using the staking validators that it controls. Blockchain protocols, or the participants that form the protocol networks, reward users for performing various activities on the blockchain. The most common form today is participating in proof-of-stake networks, however, there are other consensus algorithms. The Company considers itself the principal in transactions with the blockchain networks, and therefore presents such blockchain rewards earned on a gross basis. In exchange for participating in the consensus mechanism of these networks, the Company recognizes revenue in the form of the native token of the network. Each block creation or validation is a performance obligation. Revenue is recognized at the point when the block creation or validation is complete and the rewards are transferred into a digital wallet that the Company controls. Revenue is measured based on the number of tokens received and the fair value of the token at contract inception. Blockchain services offered as part of Coinbase Cloud’s blockchain infrastructure solutions are included in other subscription and services revenue. The Company’s staking revenue is included within blockchain rewards. Interest income and corporate interest income The Company holds customer custodial funds and cash and cash equivalents at certain third-party banks which earn interest. Interest income earned from customer custodial funds, cash and cash equivalents and loans is calculated using the interest method and is not within the scope of Topic 606 – Revenue from Contracts with Customers . Interest earned on customer custodial funds and loans is included in interest income within subscription and services revenue. Interest earned on the Company’s corporate cash and cash equivalents is included in corporate interest and other income within other revenue. Custodial fee revenue The Company provides a dedicated secure cold storage solution to customers and earns a fee, which is based on a contractual percentage of the daily value of assets under custody. The fee is collected on a monthly basis. These contracts typically have one performance obligation which is provided and satisfied over the term of the contracts as customers simultaneously receive and consume the benefits of the services. The contract may be terminated by a customer at any time, without incurring a penalty. Customers are billed on the last day of the month during which services were provided, with the amounts generally being due within thirty days of receipt of the invoice. Accounts receivable from customers for custodial fee revenue, net of allowance, were $10.0 million and $7.8 million as of September 30, 2023 and December 31, 2022, respectively. The allowance recognized against these fees was not material for any of the periods presented. Other subscription and services revenue Other subscription and services revenue primarily comprises revenue from Coinbase One, Coinbase Cloud, which includes staking application, delegation, and infrastructure services, Learning Rewards campaign revenue, Prime Financing, and revenue from other subscription licenses. Generally, revenue from other subscription and services contains one performance obligation, may have variable and non-cash consideration, and is recognized at a point in time or over the period that services are provided. Accounts receivable from customers for other subscriptions and services revenue, net of allowance, were $14.6 million and $13.1 million as of September 30, 2023 and December 31, 2022, respectively. The allowance recognized against these fees was not material for any of the periods presented. Revenue by geographic location In the table below are the revenues disaggregated by geography, based on domicile of the customers or booking location, as applicable (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 United States $ 603,648 $ 501,963 $ 1,928,278 $ 2,125,010 Rest of the World (1) 70,500 88,376 226,310 440,090 Total revenue $ 674,148 $ 590,339 $ 2,154,588 $ 2,565,100 __________________ (1) No other individual country accounted for more than 10% of total revenue. |
ACCOUNTS AND LOANS RECEIVABLE,
ACCOUNTS AND LOANS RECEIVABLE, NET OF ALLOWANCE | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
ACCOUNTS AND LOANS RECEIVABLE, NET OF ALLOWANCE | ACCOUNTS AND LOANS RECEIVABLE, NET OF ALLOWANCE Accounts and loans receivable, net of allowance consisted of the following (in thousands): September 30, December 31, 2023 2022 Stablecoin revenue receivable $ 57,820 $ 179,996 Customer fee revenue receivable (1) 34,846 23,014 Loans receivable (2) 215,928 98,203 Crypto asset loans receivable 57,517 85,826 Other receivables 53,211 28,837 Allowance for doubtful accounts (3) (21,856) (11,500) Total accounts and loans receivable, net of allowance $ 397,466 $ 404,376 __________________ (1) Includes accounts receivables denominated in crypto assets of $10.0 million and $6.9 million as of September 30, 2023 and December 31, 2022, respectively. See Note 13. Derivatives for additional details (2) As of September 30, 2023 and December 31, 2022, loans receivable did not include $88.1 million and $2.8 million, respectively, of receivables as these loaned assets did not meet the criteria for derecognition. (3) Includes provision for transaction losses of $2.2 million and $3.2 million as of September 30, 2023 and December 31, 2022, respectively. Loans receivable The Company issues fiat loans to consumers and institutions. As of May 10, 2023, the Company stopped issuing new loans to consumers and existing consumer borrowers will have until November 20, 2023 to pay back their loans. As of September 30, 2023 and December 31, 2022, the Company had issued consumer loans with an outstanding principal balance of $78.3 million and $98.2 million, respectively. The related interest receivable on the consumer loans as of September 30, 2023 and December 31, 2022 was $0.5 million a nd $0.7 million, respectively. As of September 30, 2023, the Company had issued institutional loans with an outstanding principal balance of $125.8 million and the related interest receivable was $0.9 million. The Company did not have institutional loans issued and outstanding as of December 31, 2022. The amounts loaned are collateralized with crypto assets which are either held by the borrower in their crypto asset wallet on the Company’s platform or held directly by the Company. The Company generally does not have the right to use such collateral unless the borrower defaults on the loans. Due to the collateral requirements the Company applies to such loans, the Company's process for collateral maintenance, and collateral held on platform, the Company’s credit exposure is significantly limited and no allowance, write-offs or recoveries were recorded against these loans receivable. The loans are measured at amortized cost. The carrying value of the loans approximates their fair value due to their short-term duration of less than 12 months. As of September 30, 2023 and December 31, 2022, there were no loans receivable past due. See Note 11. Collateral , for additional details regarding the Company’s obligation to return collateral. Crypto asset loans receivable The Company enters into transactions where it lends crypto assets to institutional customers. The Company evaluates the crypto asset loans receivable for credit loss. Due to the collateral requirements the Company applies to such loans, the Company's process for collateral maintenance, and collateral held on platform, the Company’s credit exposure is significantly limited and no allowance, write-offs or recoveries were recorded against these crypto asset loans receivable. As of September 30, 2023 and December 31, 2022, there were no crypto asset loans receivable past due. The Company requires that borrowers pledge assets as collateral for these loans. See Note 11. Collateral, for additional details regarding the Company’s obligation to return collateral. |
ACCOUNTS AND LOANS RECEIVABLE, NET OF ALLOWANCE | ACCOUNTS AND LOANS RECEIVABLE, NET OF ALLOWANCE Accounts and loans receivable, net of allowance consisted of the following (in thousands): September 30, December 31, 2023 2022 Stablecoin revenue receivable $ 57,820 $ 179,996 Customer fee revenue receivable (1) 34,846 23,014 Loans receivable (2) 215,928 98,203 Crypto asset loans receivable 57,517 85,826 Other receivables 53,211 28,837 Allowance for doubtful accounts (3) (21,856) (11,500) Total accounts and loans receivable, net of allowance $ 397,466 $ 404,376 __________________ (1) Includes accounts receivables denominated in crypto assets of $10.0 million and $6.9 million as of September 30, 2023 and December 31, 2022, respectively. See Note 13. Derivatives for additional details (2) As of September 30, 2023 and December 31, 2022, loans receivable did not include $88.1 million and $2.8 million, respectively, of receivables as these loaned assets did not meet the criteria for derecognition. (3) Includes provision for transaction losses of $2.2 million and $3.2 million as of September 30, 2023 and December 31, 2022, respectively. Loans receivable The Company issues fiat loans to consumers and institutions. As of May 10, 2023, the Company stopped issuing new loans to consumers and existing consumer borrowers will have until November 20, 2023 to pay back their loans. As of September 30, 2023 and December 31, 2022, the Company had issued consumer loans with an outstanding principal balance of $78.3 million and $98.2 million, respectively. The related interest receivable on the consumer loans as of September 30, 2023 and December 31, 2022 was $0.5 million a nd $0.7 million, respectively. As of September 30, 2023, the Company had issued institutional loans with an outstanding principal balance of $125.8 million and the related interest receivable was $0.9 million. The Company did not have institutional loans issued and outstanding as of December 31, 2022. The amounts loaned are collateralized with crypto assets which are either held by the borrower in their crypto asset wallet on the Company’s platform or held directly by the Company. The Company generally does not have the right to use such collateral unless the borrower defaults on the loans. Due to the collateral requirements the Company applies to such loans, the Company's process for collateral maintenance, and collateral held on platform, the Company’s credit exposure is significantly limited and no allowance, write-offs or recoveries were recorded against these loans receivable. The loans are measured at amortized cost. The carrying value of the loans approximates their fair value due to their short-term duration of less than 12 months. As of September 30, 2023 and December 31, 2022, there were no loans receivable past due. See Note 11. Collateral , for additional details regarding the Company’s obligation to return collateral. Crypto asset loans receivable The Company enters into transactions where it lends crypto assets to institutional customers. The Company evaluates the crypto asset loans receivable for credit loss. Due to the collateral requirements the Company applies to such loans, the Company's process for collateral maintenance, and collateral held on platform, the Company’s credit exposure is significantly limited and no allowance, write-offs or recoveries were recorded against these crypto asset loans receivable. As of September 30, 2023 and December 31, 2022, there were no crypto asset loans receivable past due. The Company requires that borrowers pledge assets as collateral for these loans. See Note 11. Collateral, for additional details regarding the Company’s obligation to return collateral. |
GOODWILL, INTANGIBLE ASSETS, NE
GOODWILL, INTANGIBLE ASSETS, NET AND CRYPTO ASSETS HELD | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL, INTANGIBLE ASSETS, NET AND CRYPTO ASSETS HELD | GOODWILL, INTANGIBLE ASSETS, NET AND CRYPTO ASSETS HELD Goodwill The following table reflects the changes in the carrying amount of goodwill (in thousands): Nine Months Ended September 30, 2023 Year Ended December 31, 2022 Balance, beginning of period $ 1,073,906 $ 625,758 Additions due to business combinations 65,764 454,417 Measurement period adjustments (1) — (6,269) Balance, end of period $ 1,139,670 $ 1,073,906 __________________ (1) The measurement period adjustments during the year ended December 31, 2022 consisted of $4.1 million, $0.3 million and $1.9 million related to the Unbound acquisition, FairX acquisition and certain other acquisitions that were material when aggregated, respectively, and which were associated with the changes in deferred tax assets as a result of changes in estimates. There were no measurement period adjustments during the three and nine months ended September 30, 2023. There was no impairment recognized against goodwill at the beginning or end of the periods presented. Intangible assets, net Intangible assets, net consisted of the following (in thousands, except years data): As of September 30, 2023 Gross Carrying Amount Accumulated Amortization Intangible Assets, Net Weighted Average Remaining Useful Life (in Years) Amortizing intangible assets Acquired developed technology $ 119,991 $ (102,348) $ 17,643 3.1 User base 2,997 (2,943) 54 0.1 Customer relationships 103,791 (61,014) 42,777 3.3 Non-compete agreement 2,402 (2,002) 400 0.8 Trade relationships 3,400 (1,889) 1,511 1.3 IPR&D (1) 4,300 — 4,300 N/A Indefinite-lived intangible assets Domain name 250 — 250 N/A Licenses 28,000 — 28,000 N/A Total $ 265,131 $ (170,196) $ 94,935 __________________ (1) Amortization begins once the technology is placed in service. IPR&D is expected to have a useful life of three years once placed in service. As of December 31, 2022 Gross Carrying Amount Accumulated Amortization Intangible Assets, Net Weighted Average Remaining Useful Life (in Years) Amortizing intangible assets Acquired developed technology $ 126,692 $ (81,172) $ 45,520 2.3 User base 2,997 (2,154) 843 0.8 Customer relationships 86,691 (45,717) 40,974 2.6 Non-compete agreement 2,402 (1,641) 761 1.6 Assembled workforce 60,800 (44,857) 15,943 0.4 Trade relationships 3,400 (1,039) 2,361 2.1 IPR&D (1) 1,877 — 1,877 N/A Indefinite-lived intangible assets Domain name 250 — 250 N/A Licenses 26,900 — 26,900 N/A Total $ 312,009 $ (176,580) $ 135,429 __________________ (1) Amortization begins once the technology is placed in service. IPR&D is expected to have a useful life of three years once placed in service. Amortization expense of intangible assets was $13.2 million and $61.1 million for the three and nine months ended September 30, 2023, respectively. Amortization expense of intangible assets was $27.7 million and $80.0 million for the three and nine months ended September 30, 2022, respectively. The Company estimates that there is no significant residual value related to its amortizing intangible assets. During the nine months ended September 30, 2023, the Company recorded impairment charges of $0.5 million related to its intangible assets, excluding crypto assets held. The Company did not record any impairment charges related to its intangible assets, excluding crypto assets held, during the three months ended September 30, 2023. During the three and nine months ended September 30, 2022, the Company recorded impairment charges of $0.1 million and $4.5 million, respectively, related to its intangible assets, excluding crypto assets held. Impairment expense is included in technology and development expense. The expected future amortization expense for amortizing intangible assets other than IPR&D as of September 30, 2023 is as follows (in thousands): 2023 (for the remainder of) $ 8,197 2024 24,216 2025 15,966 2026 7,665 2027 3,026 Thereafter 3,315 Total expected future amortization expense $ 62,385 Crypto assets held Crypto assets held consisted of the following (in thousands): September 30, December 31, 2023 2022 Recorded at impaired cost Crypto assets held as investments $ 310,873 $ 155,251 Crypto assets held for operating purposes 82,003 67,577 Crypto assets borrowed 6,546 — Total crypto assets held recorded at impaired cost 399,422 222,828 Recorded at fair value (1) Crypto assets held as investments — 133,416 Crypto assets held for operating purposes 6,672 — Crypto assets borrowed 49,892 68,149 Total crypto assets held recorded at fair value 56,564 201,565 Total crypto assets held $ 455,986 $ 424,393 __________________ (1) Recorded at fair value as these crypto assets are held as the hedged item in qualifying fair value hedges. Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in thousands) (in thousands) Gross crypto asset impairment expense $ 22,868 $ 25,918 $ 77,151 $ 689,077 Recoveries (15,688) (13,768) (60,062) (34,115) Crypto asset impairment, net $ 7,180 $ 12,150 $ 17,089 $ 654,962 The Company records gross impairment cha rges when the observed market price of crypto assets held decreases below the carrying value. The Company may later recover impairments through subsequent crypto asset sales and disposals . Collectively, these activities are shown as crypto asset impairment, net in the Company’s condensed consolidated statements of operations. See Note 13. Derivatives , for additional details regarding crypto assets held designated as hedged items in fair value hedges. See Note 14. Fair Value Measurements , for additional details regarding the carrying value of the Company’s crypto assets held. When the Company borrows crypto assets, it may be required to pledge collateral to maintain a required collateral percentage. See Note 11. Collateral for additional details regarding assets pledged as collateral. |
CUSTOMER ASSETS AND LIABILITIES
CUSTOMER ASSETS AND LIABILITIES | 9 Months Ended |
Sep. 30, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
CUSTOMER ASSETS AND LIABILITIES | CUSTOMER ASSETS AND LIABILITIES The following table presents customers’ cash and safeguarded crypto positions (in thousands): September 30, December 31, 2023 2022 Customer custodial funds $ 3,474,489 $ 5,041,119 Safeguarding customer crypto assets 114,291,909 75,413,188 Total customer assets $ 117,766,398 $ 80,454,307 Customer custodial cash liabilities $ 3,474,489 $ 4,829,587 Safeguarding customer crypto liabilities 114,291,909 75,413,188 Total customer liabilities $ 117,766,398 $ 80,242,775 The Company safeguards crypto assets for customers in digital wallets and portions of cryptographic keys necessary to access crypto assets on the Company’s platform. The Company safeguards these assets and/or keys and is obligated to safeguard them from loss, theft, or other misuse. The Company records safeguarding customer crypto assets and liabilities, in accordance with Staff Accounting Bulletin 121 (“SAB 121”). The Company maintains a record of all crypto assets in digital wallets held on the Company’s platform as well as the full or a portion of private keys including backup keys, which are maintained on behalf of customers. For crypto assets where the customer can transact without the involvement of the Company or crypto assets where the Company does not maintain a private key or the ability to recover a customer’s private key or their crypto assets, these balances are not recorded, as there is no related safeguarding obligation in accordance with SAB 121. The Company records the safeguarding customer crypto assets and liabilities, on the initial recognition and at each reporting date, at the fair value of the crypto assets which it safeguards for its customers. The Company has committed to securely store all customer crypto assets and cryptographic keys (or portions thereof) it holds on behalf of customers, and the value of these assets have been recorded as safeguarding customer crypto liabilities and corresponding safeguarding customer crypto assets. As such, the Company may be liable to its customers for losses arising from theft or loss of private keys. The Company has no reason to believe it will incur any expense associated with such potential liability because (i) it has no known or historical experience of claims to use as a basis of measurement, (ii) it accounts for and continually verifies the amount of crypto assets on its platform, and (iii) it has established security around private key management to minimize the risk of theft or loss. The Company has adopted a number of measures to safeguard crypto assets it secures including, but not limited to, holding customer crypto assets on a 1:1 basis and strategically storing custodied assets offline using the Company’s cold storage process. The Company also does not reuse or rehypothecate customer crypto assets nor grant security interests in customer crypto assets, in each case unless required by law or expressly agreed to by the institutional customer. Any loss or theft would impact the measurement of the customer crypto assets. During the nine months ended September 30, 2023 and year ended December 31, 2022, no losses have been incurred in connection with safeguarded customer crypto assets. The following table sets forth the fair values of safeguarded customer crypto assets that were greater than 10% of the total safeguarded customer crypto assets recorded for the applicable period, as shown on the condensed consolidated balance sheets (in billions): September 30, 2023 December 31, 2022 Fair Value Percentage of Total (1) Fair Value Percentage of Total (1) Bitcoin $ 55.7 48.7 % $ 32.5 43.1 % Ethereum (2) 29.5 25.8 % 20.8 27.6 % Other crypto assets 29.1 25.5 % 22.1 29.3 % Total safeguarding customer crypto assets $ 114.3 100.0 % $ 75.4 100.0 % __________________ (1) As of September 30, 2023 and December 31, 2022, no assets other than Bitcoin and Ethereum individually represented more than 5% of total safeguarding customer crypto assets. (2) As of September 30, 2023 and December 31, 2022, Ethereum included $7.1 billion and $3.0 billion, respectively, of staked Ethereum. See Note 14. Fair Value Measurements , for additional details regarding the safeguarding customer crypto assets and safeguarding customer crypto liabilities. |
PREPAID EXPENSES AND OTHER ASSE
PREPAID EXPENSES AND OTHER ASSETS | 9 Months Ended |
Sep. 30, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
PREPAID EXPENSES AND OTHER ASSETS | PREPAID EXPENSES AND OTHER ASSETS Prepaid expenses and other current assets, and other non-current assets consisted of the following (in thousands): September 30, December 31, 2023 2022 Prepaid expenses and other current assets Prepaid expenses $ 88,101 $ 98,204 Assets pledged as collateral (1) 50,081 100,007 Other 19,532 18,837 Total prepaid expenses and other current assets $ 157,714 $ 217,048 Other non-current assets Strategic investments $ 357,075 $ 326,683 Deferred tax assets 1,105,992 1,046,791 Deposits 12,238 10,989 Other 2,791 17,257 Total other non-current assets $ 1,478,096 $ 1,401,720 _______________ (1) Includes $46.1 million and $58.4 million as of September 30, 2023 and December 31, 2022, respectively, of the right to receive a fixed amount of USDC pledged as collateral. See Note 11. Collateral for additional details on assets pledged as collateral. Strategic investments The Company makes strategic investments in various companies and technologies through Coinbase Ventures. Strategic investments primarily include equity investments in privately held companies without readily determinable fair values where the Company (1) holds less than 20% ownership in the entity, and (2) does not exercise significant influence, and accordingly, these investments are recorded at cost and adjusted for observable transactions for same or similar investments of the same issuer (referred to as the measurement alternative) and impairment. The changes in the carrying value of strategic investments accounted for under the measurement alternative are presented below (in thousands): Nine Months Ended September 30, 2023 2022 Carrying amount, beginning of period $ 315,285 $ 352,431 Net additions (1) 54,271 57,058 Upward adjustments 62 879 Previously held interest in ORDAM (see Note 4) (20,000) — Impairments and downward adjustments (5,774) (70,631) Carrying amount, end of period (2) $ 343,844 $ 339,737 __________________ (1) Net additions include additions from purchases and reductions due to exits of securities and reclassifications due to changes to capital structure. (2) Excludes $13.2 million and $17.3 million as of September 30, 2023 and 2022, respectively, of strategic investments that are not accounted for under the measurement alternative. Upward adjustments, impairments, and downward adjustments from remeasurement of investments are included in other (income) expense, net in the condensed consolidated statements of operations. As of September 30, 2023, cumulative upward adjustments for investments held as of that date were $4.9 million and cumulative impairments and downward adjustments were $107.8 million. As of December 31, 2022, cumulative upward adjustments for investments held as of that date were $4.9 million and cumulative impairments and downward adjustments were $102.0 million. Equity method investments The Company acquired a 50% interest in Centre Consortium LLC (“Centre”) during August 2019. The Company had significant influence over the entity, but did not have power or control. The investment was included in other under other non-current assets in the table within this Note. On August 18, 2023, the Company entered into a share transfer agreement to exchange its 50% interest in Centre to its joint venture partner, Circle US Holdings, Inc., for 3.5% of the fully diluted equity of Circle Internet Financial Limited at an estimated fair value of $51.1 million, which is included in strategic investments in the table within this Note. The Company recorded a gain of $49.9 million, which is included in other (income) expense, net in the condensed consolidated statement of operations for the three and nine months ended September 30, 2023. In connection with this transaction, the Centre joint venture was terminated. |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 9 Months Ended |
Sep. 30, 2023 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consisted of the following (in thousands): September 30, December 31, 2023 2022 Accrued expenses $ 84,369 $ 75,532 Accrued payroll and payroll related 182,774 90,257 Income taxes payable 14,663 5,534 Short-term borrowings — 20,519 Obligation to return collateral (1) 32,815 26,874 Other payables (2) 59,753 112,520 Total accrued expenses and other current liabilities $ 374,374 $ 331,236 __________________ (1) See Note 11. Collateral for additional details on obligation to return collateral. (2) Includes other payables denominated in crypto assets of $11.6 million and $8.8 million as of September 30, 2023 and December 31, 2022, respectively. See Note 13. Derivatives for additional details. Short-term borrowings |
COLLATERAL
COLLATERAL | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
COLLATERAL | COLLATERAL The following is a summary of the Company’s collateral positions: Type of Collateral Description of Collateral Location on Assets pledged as collateral The Company enters into fiat and crypto asset borrowing arrangements with certain institutional customers that require the Company to post collateral in the form of fiat or crypto assets, including stablecoins, in which the lender may have the right to sell, repledge or rehypothecate such collateral without the Company’s consent. The Company also enters into certain derivative contracts which requires the Company to post collateral in the form of fiat. The Company is required to maintain a collateral to loan ratio per the borrowing arrangements, and in the event that crypto asset prices rise, the Company will have to post additional collateral to maintain required collateral ratios. If the lender has the right to use the collateral or if the collateral is fiat, the Company presents the collateral pledged as a right to receive the collateral. The lender is not obligated to return the collateral if the Company defaults on its borrowings. As of September 30, 2023, the Company has not defaulted on any of its borrowings. Prepaid expenses and other current assets Obligation to return collateral For loans receivable and crypto asset loans receivable, the Company requires borrowers to post collateral for which it then has an obligation to return the collateral to the borrower. As of September 30, 2023, the collateral requirements ranged from 128% to 250% of the fair value of the loan, and the borrower is required to pledge additional assets to maintain their required collateral percentage. The collateral pledged by borrowers is held on the Company’s platform and the Company may have the right to use the collateral. For loans receivable, the Company does not record collateral received unless the Company has both a right to use the collateral and has sold the collateral. For crypto asset loans receivable, if the Company has the right to use collateral denominated in USDC or crypto assets, or if the collateral is fiat, the Company records the collateral as an asset with a corresponding obligation to return collateral. The Company is not obligated to return the collateral if the borrower defaults. Accrued expenses and other current liabilities Off-balance sheet collateral arrangements The Company may post collateral with lenders which are not recognized as assets pledged as collateral as they do not meet the derecognition criteria. This collateral continues to be shown on the Company’s balance sheets in its original line item. The Company had $64.8 million and $0 of such collateral posted as of September 30, 2023 and December 31, 2022, respectively. The balance as of September 30, 2023 consisted of USDC. The Company may receive non-cash collateral from borrowers where the Company does not have a right to use the collateral and does not recognize it on its balance sheets since the collateral does not meet the recognition criteria. The Company had $253.5 million and $4.8 million of such collateral received as of September 30, 2023 and December 31, 2022, respectively. Collateral posted: USDC Collateral received: Not recognized on balance sheet As of September 30, 2023 and December 31, 2022, the Company’s assets pledged as collateral and obligation to return collateral consisted of the following (in thousands, except units): September 30, 2023 December 31, 2022 Units Fair Value Units Fair Value Assets pledged as collateral USDC (1) 46,145,736 $ 46,146 47,633,897 $ 47,634 Bitcoin (2) — — 650 10,743 Fiat N/A 3,935 N/A 41,630 Total $ 50,081 $ 100,007 Obligation to return collateral USDC 32,075,359 $ 32,075 26,873,830 $ 26,874 Fiat N/A 740 N/A — Total $ 32,815 $ 26,874 _________________ (1) As of September 30, 2023 and December 31, 2022, the Company had pledged USDC that served exclusively as collateral for certain crypto asset borrowings with a fair value of at least 100% of the loan amount outstanding. (2) As of December 31, 2022, the Company had pledged Bitcoin that served exclusively as collateral for fiat loans with a fair value of at least 110% of the loan amount outstanding. |
INDEBTEDNESS
INDEBTEDNESS | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
INDEBTEDNESS | INDEBTEDNESS The components of indebtedness were as follows as of September 30, 2023 (in thousands, except percentages): Indebtedness Effective Interest Rate Principal Amount Unamortized Debt Discount and Issuance Costs Net Carrying Amount 0.50% 2026 Convertible Notes due on June 1, 2026 0.98 % $ 1,373,013 $ (18,134) $ 1,354,879 3.38% 2028 Senior Notes due on October 1, 2028 3.57 % 1,000,000 (8,623) 991,377 3.63% 2031 Senior Notes due on October 1, 2031 3.77 % 737,457 (7,114) 730,343 Total $ 3,110,470 $ (33,871) $ 3,076,599 The components of indebtedness were as follows as of December 31, 2022 (in thousands, except percentages): Indebtedness Effective Interest Rate Principal Amount Unamortized Debt Discount and Issuance Costs Net Carrying Amount 0.50% 2026 Convertible Notes due on June 1, 2026 0.98 % $ 1,437,500 $ (23,339) $ 1,414,161 3.38% 2028 Senior Notes due on October 1, 2028 3.57 % 1,000,000 (10,022) 989,978 3.63% 2031 Senior Notes due on October 1, 2031 3.77 % 1,000,000 (10,691) 989,309 Total $ 3,437,500 $ (44,052) $ 3,393,448 Convertible senior notes In May 2021, the Company issued an aggregate principal amount of $1.4 billion of convertible senior notes due in 2026 (the “2026 Convertible Notes”) pursuant to an indenture, dated May 18, 2021 (the “Convertible Notes Indenture”), between the Company and U.S. Bank National Association, as trustee. The 2026 Convertible Notes were offered and sold in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”). In June 2023, the Company paid $45.5 million to repurchase $64.5 million of aggregate principal amount of the 2026 Convertible Notes with a carrying value of $63.6 million, net of unamortized issuance costs and original issue discount of $0.9 million and legal fees of $0.3 million . The Company recorded a corresponding net gain on extinguishment of long-term debt during the nine months ended September 30, 2023 of $17.8 million in other (income) expense, net within the condensed consolidated statements of operations. Senior notes In September 2021, the Company completed the issuance of an aggregate principal amount of $1.0 billion of senior notes due on October 1, 2028 (the “2028 Senior Notes”) and an aggregate principal amount of $1.0 billion of senior notes due on October 1, 2031 (the “2031 Senior Notes” and together with the 2028 Senior Notes, the “Senior Notes”). The Senior Notes were issued within the United States only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act, and outside the United States to non-U.S. persons pursuant to Regulation S under the Securities Act. In August and September 2023, the Company paid $177.2 million to repurchase $262.5 million of aggregate principal amount of the 2031 Senior Notes with a carrying value of $259.9 million , net of unamortized issuance costs of $2.6 million and legal fees of $1.1 million . The Company recorded a corresponding net gain on extinguishment of long-term debt during the three and nine months ended September 30, 2023 of $81.6 million Interest The following table summarizes the interest expense for the 2026 Convertible Notes, the 2028 Senior Notes, and the 2031 Senior Notes (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Coupon interest $ 18,510 $ 19,296 $ 57,095 $ 57,937 Amortization of debt discount and issuance costs 2,262 2,204 6,665 6,442 Total $ 20,772 $ 21,500 $ 63,760 $ 64,379 Debt discounts and debt issuance costs are amortized to interest expense using the effective interest method over the contractual term of the respective note. |
DERIVATIVES
DERIVATIVES | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVES | DERIVATIVES The following outlines the Company’s derivatives: Type of Derivative Description of Derivative Location of Host Contract and Derivative on Balance Sheets Crypto asset borrowings The Company borrowed crypto assets that resulted in the obligation to deliver a fixed amount of crypto assets in the future. Crypto asset borrowings Accounts and loans receivable denominated in crypto assets Accounts receivable denominated in crypto assets: The Company provided services for which, under the contract, the customer pays in crypto assets. The amount of crypto assets are fixed at the time of invoicing. Crypto asset loans receivable: The Company lends crypto assets to institutions. The amount of crypto assets are fixed at the time of loan origination. In both of the above cases, the right to receive fixed amounts of crypto assets consists of a receivable host contract and an embedded forward contract to purchase crypto assets. Accounts and loans receivable, net of allowance Other payables denominated in crypto assets The Company entered into arrangements that result in the obligation to deliver a fixed amount of crypto assets in the future. Accrued expenses and other current liabilities Crypto asset futures The Company entered into short positions on futures contracts to minimize the exposure on the change in the fair value price of crypto assets held. Accounts and loans receivable, net of allowance Crypto assets pledged as collateral The Company enters into certain borrowing arrangements that require the Company to post collateral in the form of crypto assets. If the lender has the right to use the crypto asset collateral, the Company presents the collateral pledged as a right to receive a fixed amount of crypto assets. Prepaid expenses and other current assets Foreign currency forward contracts The Company entered into foreign currency forward contracts, with maturities of 12 months or less, to offset the foreign currency exchange risk of its assets and liabilities denominated in foreign currencies. These contracts are not designated as hedging instruments and reduce, but do not entirely eliminate, the impact of foreign currency exchange rate movements on the Company’s assets and liabilities. Prepaid expenses and other current assets/ Accrued expenses and other current liabilities Impact of derivatives on the condensed consolidated balance sheets The following table summarizes the notional amounts of derivative instruments outstanding, measured in U.S. dollar equivalents (in thousands): September 30, December 31, 2023 2022 Designated as hedging instrument (1) Crypto asset borrowings with embedded derivatives $ 51,149 $ 80,999 Crypto asset futures (2) 7,889 136,230 Not designated as hedging instrument Crypto asset borrowings with embedded derivatives 62,371 70,462 Accounts and loans receivable denominated in crypto assets 59,714 101,598 Other payables denominated in crypto assets 13,111 4,267 Crypto asset futures (2) 13,012 12,462 Crypto assets pledged as collateral — 13,103 Other 19,396 — __________________ (1) For risk management purposes, the Company applies hedge accounting using these derivative instruments in qualifying fair value hedges to primarily hedge the fair value exposure of crypto asset prices. (2) Derivative transactions are measured in terms of the notional amount; however, this amount is not recorded on the condensed consolidated balance sheets and is not, when viewed in isolation, a meaningful measure of the risk profile of the derivative instruments. The notional amount is generally not exchanged, but is used only as the underlying basis on which the value of exchange payments or settlement under these contracts are determined. The following tables summarize information on derivative assets and liabilities that are reflected on the Company’s condensed consolidated balance sheets, by accounting designation (in thousands): Gross Derivative Assets Gross Derivative Liabilities September 30, 2023 Not Designated as Hedges Designated as Hedges Total Derivative Assets Not Designated as Hedges Designated as Hedges Total Derivative Liabilities Crypto asset borrowings with embedded derivatives (1) $ 2,752 $ 2,805 $ 5,557 $ 523 $ 769 $ 1,292 Accounts and loans receivable denominated in crypto assets 9,542 — 9,542 1,705 — 1,705 Other payables denominated in crypto assets 4,495 — 4,495 2,965 — 2,965 Other 403 — 403 63 — 63 Total fair value of derivative assets and liabilities $ 17,192 $ 2,805 $ 19,997 $ 5,256 $ 769 $ 6,025 Gross Derivative Assets Gross Derivative Liabilities December 31, 2022 Not Designated as Hedges Designated as Hedges Total Derivative Assets Not Designated as Hedges Designated as Hedges Total Derivative Liabilities Crypto asset borrowings with embedded derivatives (1) $ 2,266 $ — $ 2,266 $ 657 $ 1,653 $ 2,310 Accounts and loans receivable denominated in crypto assets 302 — 302 9,146 — 9,146 Other payables denominated in crypto assets 1,270 — 1,270 5,767 — 5,767 Crypto assets pledged as collateral — — — 2,360 — 2,360 Total fair value of derivative assets and liabilities $ 3,838 $ — $ 3,838 $ 17,930 $ 1,653 $ 19,583 __________________ (1) During the nine months ended September 30, 2023, the fees on these borrowings ranged from 1.5% to 9.3%. During the nine months ended September 30, 2022, the fees on these borrowings ranged from 0.0% to 7.5%. During the three and nine months ended September 30, 2023, the Company incurred $0.7 million and $3.4 million of borrowing fees in crypto assets, respectively. During the three and nine months ended September 30, 2022, the Company incurred $0.9 million and $3.9 million of borrowing fees in crypto assets, respectively. Borrowing fees are included in other operating expense (income), net in the condensed consolidated statements of operations. Impact of derivatives on the condensed consolidated statements of operations Gains (losses) on derivative instruments recognized in the Company’s condensed consolidated statements of operations were as follows (in thousands): Three Months Ended September 30, 2023 Three Months Ended September 30, 2022 Derivatives Hedged Items Income Statement Impact Derivatives Hedged Items Income Statement Impact Designated as fair value hedging instruments Crypto asset borrowings with embedded derivatives (1) $ 12,707 $ (4,247) $ 8,460 $ (211,110) $ 207,112 $ (3,998) Crypto asset futures (1) 1,329 (1,331) (2) 225 (77) 148 Not designated as hedging instruments Crypto asset borrowings with embedded derivatives (1) (30) — (30) — — — Accounts and loans receivable denominated in crypto assets (1) (8,466) — (8,466) (4,213) — (4,213) Other payables denominated in crypto assets (1) 6,337 — 6,337 (2,367) — (2,367) Crypto asset futures (1) 558 — 558 (566) — (566) Foreign currency forward contracts (2) — — — 22,935 — 22,935 Crypto assets pledged as collateral (1) 196 — 196 — — — Other (1) 5,259 — 5,259 — — — Total $ 17,890 $ (5,578) $ 12,312 $ (195,096) $ 207,035 $ 11,939 Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022 Derivatives Hedged Items Income Statement Impact Derivatives Hedged Items Income Statement Impact Designated as fair value hedging instruments Crypto asset borrowings with embedded derivatives (1) $ (75,848) $ 44,686 $ (31,162) $ 148,959 $ (154,228) $ (5,269) Crypto asset futures (1) (41,782) 47,160 5,378 13,237 (12,339) 898 Not designated as hedging instruments Crypto asset borrowings with embedded derivatives (1) 166 — 166 6,626 — 6,626 Accounts and loans receivable denominated in crypto assets (1) 38,614 — 38,614 (14,476) — (14,476) Other payables denominated in crypto assets (1) 7,181 — 7,181 143 — 143 Crypto asset futures (1) 960 — 960 (1,077) — (1,077) Foreign currency forward contracts (2) — — — 22,935 — 22,935 Other (1) 4,656 — 4,656 — — — Total $ (66,053) $ 91,846 $ 25,793 $ 176,347 $ (166,567) $ 9,780 __________________ (1) Changes in fair value are recognized in other operating expense (income), net in the condensed consolidated statements of operations. (2) Changes in fair value are recognized in other (income) expense, net, which partially offset gains and losses due to the remeasurement of certain foreign currency denominated assets and liabilities which are also recognized in other (income) expense, net in the condensed consolidated statements of operations. The following amounts were recorded on the condensed consolidated balance sheets related to certain cumulative fair value hedge basis adjustments that are expected to reverse through the condensed consolidated statements of operations in future periods as an adjustment to other operating (income) expense, net (in thousands): Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Items Carrying Amount of the Hedged Items Active Hedging Relationships Discontinued Hedging Relationships Total September 30, 2023 Crypto assets held $ 56,564 $ (52,047) $ (1,796) $ (53,843) December 31, 2022 Crypto assets held $ 201,565 $ (562) $ 670 $ 108 |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS 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 (in thousands): September 30, 2023 Level 1 Level 2 Level 3 Total Assets Cash equivalents (1) $ 3,680,337 $ — $ — $ 3,680,337 Customer custodial funds (2) 2,541,561 — — 2,541,561 Crypto assets held (3) 56,564 — — 56,564 Derivative assets (4) — 10,455 — 10,455 Crypto asset loans receivable (5) — 57,517 — 57,517 Safeguarding customer crypto assets — 114,291,909 — 114,291,909 Total assets $ 6,278,462 $ 114,359,881 $ — $ 120,638,343 Liabilities Derivative liabilities (4) $ — $ 4,833 $ — $ 4,833 Safeguarding customer crypto liabilities — 114,291,909 — 114,291,909 Total liabilities $ — $ 114,296,742 $ — $ 114,296,742 December 31, 2022 Level 1 Level 2 Level 3 Total Assets Cash equivalents (1) $ 2,250,065 $ — $ — $ 2,250,065 Customer custodial funds (2) 2,088,132 — — 2,088,132 Crypto assets held (3) 201,565 — — 201,565 Derivative assets (4) — 3,838 — 3,838 Crypto asset loans receivable (5) — 85,826 — 85,826 Safeguarding customer crypto assets — 75,413,188 — 75,413,188 Total assets $ 4,539,762 $ 75,502,852 $ — $ 80,042,614 Liabilities Derivative liabilities (4) $ — $ 19,583 $ — $ 19,583 Contingent consideration arrangement — — 1,855 1,855 Safeguarding customer crypto liabilities — 75,413,188 — 75,413,188 Total liabilities $ — $ 75,432,771 $ 1,855 $ 75,434,626 __________________ (1) Represents money market funds. Excludes $1.3 billion of corporate cash held in deposit at banks and $163.5 million held at venues, which were not measured and recorded at fair value as of September 30, 2023. Excludes $2.0 billion of corporate cash held in deposit at banks and $143.2 million held at venues, which were not measured and recorded at fair value as of December 31, 2022. (2) Represents money market funds. Excludes customer custodial funds of $0.9 billion and $3.0 billion held in deposit at financial institutions and not measured and recorded at fair value as of September 30, 2023 and December 31, 2022, respectively. (3) Includes crypto assets held that have been designated as hedged items in fair value hedges and excludes crypto assets of $399.4 million and $222.8 million held at cost as of September 30, 2023 and December 31, 2022, respectively. (4) See Note 13. Derivatives for additional details. (5) Includes the embedded derivative asset of $9.5 million and $0.3 million and embedded derivative liability of $1.2 million and $6.0 million related to the Company's crypto asset loans receivable as of September 30, 2023 and December 31, 2022, respectively. See Note 13. Derivatives for additional details. Assets and liabilities measured and recorded at fair value on a non-recurring basis The Company’s non-financial assets, such as goodwill, intangible assets, property and equipment, and crypto assets held but not designated in hedging relationships are adjusted to fair value when an impairment charge is recognized. The Company’s strategic investments are also measured at fair value on a non-recurring basis. Such fair value measurements are based predominantly on Level 3 inputs. The carrying value of the Company’s strategic investments is predominantly adjusted based on an Option-Pricing Model that uses publicly available market data of comparable companies and other unobservable inputs including expected volatility, expected time to liquidity, adjustments for other company-specific developments, and the rights and obligations of the securities the Company holds. Fair value of crypto assets held are predominantly based on Level 1 inputs. Assets and liabilities not measured and recorded at fair value The Company’s financial instruments, including certain cash and cash equivalents, restricted cash, certain customer custodial funds, USDC, customer custodial cash liabilities, short-term borrowings and loans receivable are carried at amortized cost, which approximates their fair value. If these financial instruments were recorded at fair value, they would be based on Level 1 inputs, except for short-term borrowings and loans receivable which would be based on Level 2 and Level 3 inputs, respectively. The Company estimates the fair value of its 2026 Convertible Notes and Senior Notes based on quoted prices in markets that are not active, which is considered a Level 2 valuation input. As of September 30, 2023, the estimated fair value of the 2026 Convertible Notes and Senior Notes were $1.0 billion and $1.2 billion, respectively. |
COMMON STOCK
COMMON STOCK | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
COMMON STOCK | COMMON STOCKEffective April 1, 2021, the Company filed the Restated Certificate of Incorporation, amending and restating its certificate of incorporation to authorize 10,000,000,000 shares of Class A common stock, 500,000,000 shares of Class B common stock, 500,000,000 shares of undesignated common stock, and 500,000,000 shares of undesignated preferred stock. Shares of Class A common stock and Class B common stock will be treated equally, identically and ratably, on a per share basis, with respect to dividends that may be declared by the Company’s board of directors. Holders of Class A common stock are entitled to one vote per share, and holders of Class B common stock are entitled to 20 votes per share. Holders of Class A common stock and Class B common stock generally vote together as a single class on all matters (including the election of directors) submitted to a vote of the stockholders of the Company. Upon a liquidation, dissolution or winding-up of the Company, the assets legally available for distribution to stockholders would be distributed ratably among the holders of Class A common stock and Class B common stock and any participating preferred stock or new series of common stock outstanding at that time, subject to prior satisfaction of all outstanding debt and liabilities and the preferential rights of and the payment of liquidation preferences, if any, on any outstanding shares of preferred stock or new series of common stock. Shares of Class B common stock are convertible at any time at the option of the holder into shares of Class A common stock on a one-to-one basis. In addition, each share of Class B common stock will automatically convert into a share of Class A common stock upon a sale or transfer (other than with respect to certain estate planning and other transfers). Further, upon certain events specified in the Restated Certificate of Incorporation, all outstanding shares of Class B common stock will convert automatically into shares of Class A common stock. The Company has reserved shares of Class A common stock and Class B common stock for issuance for the following purposes (in thousands): September 30, December 31, 2023 2022 Class A common stock Options issued and outstanding under the 2013 Amended and Restated Stock Plan (the “2013 Plan”) 902 982 Options issued and outstanding under the 2019 Equity Incentive Plan (the “2019 Plan”) 23,560 25,314 RSUs issued and outstanding under the 2019 Plan 1,100 2,418 Options issued and outstanding under the 2021 Equity Incentive Plan (the “2021 Plan”) 1,599 862 RSUs issued and outstanding under the 2021 Plan 4,413 2,911 Performance Restricted Stock Units (the "PRSUs") issued and outstanding under the 2021 Plan 804 — Shares available for future issuance under the 2021 Plan 48,341 42,819 Shares available for future issuance under the ESPP 9,083 6,701 RSUs and replacement options issued and outstanding from acquisitions 140 135 Shares available for future issuance of warrants 2,296 2,296 Total Class A common stock shares reserved 92,238 84,438 Class B common stock Options issued and outstanding under the 2013 Plan 3,823 4,502 Total Class B common stock shares reserved 3,823 4,502 |
STOCK-BASED COMPENSATION
STOCK-BASED COMPENSATION | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Stock options Activity of options outstanding are as follows (in thousands, except per share and years data): Options Outstanding Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Balance at January 1, 2023 31,795 $ 23.31 6.95 $ 504,222 Granted 843 73.07 Exercised (1,883) 14.61 Forfeited and cancelled (814) 41.14 Balance at September 30, 2023 29,941 $ 24.77 6.32 $ 1,583,971 Exercisable at September 30, 2023 23,800 $ 25.12 6.18 $ 1,266,795 Vested and expected to vest at September 30, 2023 23,858 $ 25.10 6.18 $ 1,270,146 During the three months ended September 30, 2023, the Company granted no stock options. During the nine months ended September 30, 2023, the Company granted stock options for the purchase of 842,617 shares of the Company’s Class A common stock with a weighted-average grant date fair value of $40.85 per share to certain employees of the Company. The stock options vest over three years at a rate of 1/12 per quarter. As of September 30, 2023, there was total unrecognized compensation cost of $87.3 million related to unvested stock options. These costs are expected to be recognized over a weighted-average period of approximately 2.3 years. The assumptions used under the Black-Scholes-Merton Option-Pricing Model to calculate the fair value of the options granted to employees were as follows: Nine Months Ended September 30, 2023 2022 Dividend yield 0.0 % 0.0 % Expected volatility 90.5 % 59.3 % Expected term (in years) 5.8 5.8 Risk-free interest rate 3.9 % 2.1 % As of September 30, 2023, there were 50,986 shares o f Class A common stock subject to repurchase related to stock options exercised early and not yet vested, but that are expected to vest. As of September 30, 2023 , the Company recorded a liability related to these shares subject to repurchase in the amount of $1.2 million, which is i ncluded within accrued expenses and other current liabilities on the accompanying condensed consolidated balance sheets. Chief Executive Officer performance stock options During the three and nine months ended September 30, 2023, stock-based compensation expense of $1.0 million and $2.9 million, respectively, was recognized related to the Chief Executive Officer performance based stock options. R estricted stock units The Company issues RSUs that vest upon the satisfaction of a service-based condition. In general, the RSUs vest over a service period ranging from one Activity of RSUs outstanding are as follows (in thousands, except per share data): Number of Shares Weighted-Average Grant Date Fair Value Per Share Balance at January 1, 2023 5,329 $ 127.85 Granted 9,316 57.59 Vested (7,763) 71.61 Forfeited and cancelled (1,286) 120.61 Balance at September 30, 2023 5,596 $ 90.58 For RSUs granted during the three and nine months ended September 30, 2023, the closing price of the Company’s Class A common stock as reported on The Nasdaq Global Select Market on the grant date was used as the fair value. As of September 30, 2023, there was total unrecognized compensation cost of $429.1 million related to unvested RSUs. These costs are expected to be recognized over a weighted-average period of approximately 1.3 years. Performance restricted stock units The Company also grants PRSUs, which are subject to either (a) a market condition or (b) the achievement of performance goals. President & Chief Operating Officer Performance Award On April 20, 2023, the Company’s Compensation Committee granted the President & Chief Operating Officer an award of PRSUs covering a target of 401,983 shares of the Company’s Class A common stock and up to a maximum of 803,966 shares of the Company’s Class A common stock (the “2023 COO Performance Award”). Up to 40% of the 2023 COO Performance Award is subject to vesting based upon achievement of certain cumulative revenue and cumulative adjusted EBITDA target values which are separately evaluated for the period commencing January 1, 2023 and ending on December 31, 2025, subject to her continued employment until February 20, 2026. Up to 60% of the 2023 COO Performance Award is subject to vesting in increments based upon a relative shareholder return target value for the three annual periods between January 1, 2023 and December 31, 2025, and the three year period between January 1, 2023 and December 31, 2025, subject to her continued employment through the applicable year end dates. The total grant date fair value of this award was $25.1 million . The Company determined the fair value of the portion of the award subject to a market condition using a Monte Carlo Simulation Model (a binomial lattice-based valuation model). The Monte Carlo Simulation Model uses multiple input variables to determine the probability of satisfying the market condition requirements. The fair value of the award is not subject to change based on future market conditions. The Company uses the accelerated attribution method to recognize expense for each vesting tranche over the requisite service period for the 2023 COO Performance Award. For the portion of the award subject to a market condition, compensation expense is recognized over the requisite service period regardless of whether or not the market condition is ultimately satisfied, according to the market-based fair value measured on the grant date, subject to continued service over the period. For the portion of the award subject to financial performance conditions, the Company evaluates the cumulative revenue and the cumulative adjusted EBITDA results at each reporting date to determine which performance condition and level of achievement becomes most probable of being achieved for the three-year assessment period. Compensation expense is recognized over the requisite service period based on the result that is probable of occurring at each reporting date until the final vesting date, subject to continued service over the period. During the three and nine months ended September 30, 2023, stock-based compensation expense of $3.5 million and $6.3 million, respectively, was recognized related to this award. Activity of PRSUs outstanding are as follows (in thousands, except per share data): Number of Shares Weighted-Average Grant Date Fair Value Per Share Balance at January 1, 2023 — $ — Granted 804 55.42 Balance at September 30, 2023 804 $ 55.42 As of September 30, 2023, there was total unrecognized compensation cost of $18.8 million related to unvested PRSUs. These costs are expected to be recognized over a weighted-average period of approximately 2.0 years. Restricted common stock As part of the Company’s acquisitions, the Company has issued shares of restricted Class A common stock. Vesting of this restricted Class A common stock is dependent on a service-based vesting condition that is generally satisfied over three years. The Company has the right to repurchase shares at par value for which the vesting condition is not satisfied. Activity of restricted Class A common stock is as follows (in thousands, except per share data): Number of Shares Weighted-Average Grant Date Fair Value Per Share Balance at January 1, 2023 1,275 $ 139.72 Granted 263 64.51 Vested (954) 130.45 Forfeited and cancelled (29) 171.85 Balance at September 30, 2023 555 $ 118.33 As of September 30, 2023, there was total unrecognized compensation cost o f $40.4 million related to unvested restricted Class A common stock. These costs are expected to be recognized over a weighted-average period of approximately 1.6 years. Employee Stock Purchase Plan The ESPP allows eligible employees the option to purchase shares of the Company's Class A common stock at a 15% discount, over a series of offering periods through accumulated payroll deductions over the period. The ESPP also includes a look-back provision for the purchase price if the stock price on the purchase date is lower than the stock price on the offering date. The Company recognizes stock-based compensation expenses related to purchase rights issued pursuant to its ESPP on a straight-line basis over the offering period, which is 24 months. The fair value of purchase rights under the ESPP are estimated on the date of grant using the Black-Scholes-Merton Option-Pricing Model. The grant date of the initial offering period was May 3, 2021, and that offering period ended on April 30, 2023. Subsequent offering periods will commence in each May and November after the start of the initial offering period. As of September 30, 2023, the Company recorded a liability of $8.6 million related to the accumulated payroll deductions, which are refundable to employees who withdraw from the ESPP. T his amount is included within accrued expenses and other current liabilities on the accompanying condensed consolidated balance sheets. Stock-based compensation expense Stock-based compensation is included in the following components of expenses on the accompanying condensed consolidated statements of operations (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Technology and development $ 130,776 $ 275,817 $ 376,941 $ 793,573 Sales and marketing 16,556 18,461 45,695 52,813 General and administrative 70,821 97,163 194,149 288,692 Restructuring — — 84,042 — Total $ 218,153 $ 391,441 $ 700,827 $ 1,135,078 During the three and nine months ended September 30, 2023, $15.7 million and $44.7 million of stock-based compensation expense was included in capitalized software, respectively. During the three and nine months ended September 30, 2022, $26.3 million and $97.7 million of stock-based compensation expense was included in capitalized software, respectively. |
OTHER (INCOME) EXPENSE, NET
OTHER (INCOME) EXPENSE, NET | 9 Months Ended |
Sep. 30, 2023 | |
Other Income and Expenses [Abstract] | |
OTHER (INCOME) EXPENSE, NET | 17. OTHER (INCOME) EXPENSE, NET Other (income) expense, net comprises the following (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Losses on foreign exchange $ 382 $ 64,509 $ 10,916 $ 198,891 (Gains) losses on strategic investments (48,488) (3,408) (38,330) 70,153 Gain on extinguishment of long-term debt (81,591) — (99,446) — Other (5,610) 4,598 (4,746) 2,023 Total other (income) expense, net $ (135,307) $ 65,699 $ (131,606) $ 271,067 |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Sep. 30, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company calculates the tax provision for interim periods using an estimated annual effective tax rate applied to year-to-date ordinary income and adjusts for discrete items in the quarter. In each quarter, the estimate of the annual effective tax rate is updated and an adjustment is made in the year-to-date provision. The annual effective tax rate is subject to fluctuation due to factors including changing assumptions on forecasted annual pretax income, certain book and tax differences, valuation allowances against deferred tax assets, or changes in or interpretation of tax laws. The Company’s effective tax rate (“ETR”) can be volatile based on the amount of pretax income or loss in the period. For example, when pretax income is lower, the effect of non-deductible expenses or other discrete items will have a greater impact on the effective tax rate. The Company’s ETR for the three months ended September 30, 2023 and 2022 was 106.5% and 15.4%, respectively. The ETR of 106.5% for the three months ended September 30, 2023 was higher than the U.S. statutory rate of 21.0% primarily due to a lower estimated annual effective tax rate applied to year-to-date losses and an increase in the Company’s valuation allowance associated with impairment charges, partially offset by an increase in the Company’s deductible stock-based compensation. The Company’s ETR for the nine months ended September 30, 2023 and 2022 was 14.9% and 17.1%, respectively. The ETR of 14.9% for the nine months ended September 30, 2023 was lower than the U.S. statutory rate of 21.0% primarily due to non-deductible stock compensation expense and tax on non-U.S. earnings, offset by a partial release of a valuation allowance on deferred tax assets associated with impairment charges. As of December 31, 2022, the Company had a valuation allowance of $177.2 million recorded against its deferred capital loss tax asset balance of $225.2 million . The Company’s capital loss tax asset is comprised primarily of impairment charges related to crypto assets held and strategic investments made by Coinbase Ventures. As of each reporting date, management considers new evidence, both positive and negative, that could affect its view of the future realization of deferred tax assets. As of September 30, 2023, because crypto asset appreciation during the year provided more gains to offset losses, management determined that there is sufficient positive evidence to conclude that it is more likely than not that additional deferred taxes of $40.0 million are realizable, resulting in a net partial valuation allowance release of $40.0 million for the year. |
NET LOSS PER SHARE
NET LOSS PER SHARE | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
NET LOSS PER SHARE | NET LOSS PER SHARE The computation of net loss p er share is as follows (in thousands, except per share amounts): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Basic net loss per share: Numerator Net loss $ (2,265) $ (544,635) $ (178,566) $ (2,067,948) Net loss attributable to common stockholders, basic $ (2,265) $ (544,635) $ (178,566) $ (2,067,948) Denominator Weighted-average shares of common stock used to compute net loss per share attributable to common stockholders, basic 237,270 223,916 234,479 220,816 Net loss per share attributable to common stockholders, basic $ (0.01) $ (2.43) $ (0.76) $ (9.37) Diluted net loss per share: Numerator Net loss $ (2,265) $ (544,635) $ (178,566) $ (2,067,948) Less: Fair value gain on contingent consideration arrangement, net of tax — — — (5,395) Net loss attributable to common stockholders, diluted $ (2,265) $ (544,635) $ (178,566) $ (2,073,343) Denominator Weighted-average shares of common stock used to compute net loss per share attributable to common stockholders, basic 237,270 223,916 234,479 220,816 Weighted-average effect of potentially dilutive securities: Contingent consideration — — — 40 Weighted-average shares of common stock used to compute net loss per share attributable to common stockholders, diluted 237,270 223,916 234,479 220,856 Net income loss per share attributable to common stockholders, diluted $ (0.01) $ (2.43) $ (0.76) $ (9.39) Certain shares of the Company’s restricted Class A common stock granted as consideration in acquisitions are participating securities. These participating securities do not contractually require the holders of such shares to participate in the Company’s losses. The rights, including the liquidation and dividend rights, of the holders of Class A common stock and Class B common stock are identical, except with respect to voting. As a result, the undistributed earnings are allocated on a proportionate basis and the resulting income (loss) per share will, therefore, be the same for both Class A common stock and Class B common stock on an individual or combined basis. The following potentially dilutive shares were not included in the calculation of diluted shares outstanding as the effect would have been anti-dilutive (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Stock options 29,941 33,411 29,941 33,411 RSUs 5,596 6,854 5,596 6,854 Convertible notes 3,706 3,880 3,706 3,880 ESPP 925 1,030 925 1,030 Restricted common stock 797 1,740 797 1,740 PRSUs 804 — 804 — Contingent consideration — 76 — — Total 41,769 46,991 41,769 46,915 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Sep. 30, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Indemnifications In the event any registrable securities are included in a registration statement, the Company’s Amended and Restated Investors’ Rights Agreement (the “IRA”) entered into with certain of the Company’s stockholders provides indemnity to each stockholder, their partners, members, officers, directors, and stockholders, legal counsel, and accountants; each underwriter, if any; and each person who controls each stockholder or underwriter, against any damages incurred in connection with investigating or defending any claim or proceeding arising as a result of such registration from which damages may result. The Company will reimburse each such party for any legal and any other expenses reasonably incurred, provided that the Company will not be liable in any such case to the extent the damages arise out of or are based upon any actions or omissions made in reliance upon and in conformity with written information furnished by or on behalf of such stockholder or underwriter and stated to be specifically for use therein. The Company also has indemnity agreements with certain officers and directors of the Company pursuant to which the Company must indemnify the officer or director against all expenses, judgments, fines, and amounts paid in settlement reasonably incurred in connection with a third party proceeding, if the indemnitee acted in good faith and in a manner reasonably believed to be in or not opposed to the best interests of the Company, and in the case of a criminal proceeding, had no reasonable cause to believe the indemnitee’s conduct was unlawful. It is not possible to determine the maximum potential exposure under these indemnification agreements: (i) because the facts and circumstances involved in each claim are unique and the Company cannot predict the number or nature of claims that may be made; (ii) due to the unique facts and circumstances involved in each particular agreement; and (iii) due to the requirement for a registration of the Company’s securities before any of the indemnification obligations contemplated in the IRA become effective. The Company has also provided indemnities or similar commitments on standard commercial terms in the ordinary course of business. Legal and regulatory proceedings The Company is subject to various litigation, regulatory investigations, and other legal proceedings that arise in the ordinary course of its business. The Company is also subject to regulatory oversight by numerous regulatory and other governmental agencies. The Company reviews its lawsuits, regulatory investigations, and other legal proceedings on an ongoing basis and provides disclosure and records loss contingencies in accordance with the loss contingencies accounting guidance. In accordance with such guidance, the Company establishes accruals for such matters when potential losses become probable and can be reasonably estimated. If the Company determines that a loss is reasonably possible and the loss or range of loss can be estimated, the Company discloses the possible loss in the condensed consolidated financial statements. In July and August 2021, three purported securities class actions were filed in the U.S. District Court for the Northern District of California against the Company, its directors, certain of its officers and employees, and certain venture capital and investment firms. The complaints alleged violations of Sections 11, 12(a)(2) and 15 of the Securities Act, in connection with the registration statement and prospectus filed in connection with the Direct Listing. In November 2021, these actions were consolidated and recaptioned as In re Coinbase Global Securities Litigation , and an amended complaint was f iled. T he plaintiff seeks, among other relief, unspecified compensatory damages, attorneys’ fees, and costs. The Company disputes the claims in these cases and is vigorously defending against them. Based on the preliminary nature of the proceedings in these cases, the outcome of these matters remain uncertain and the Company cannot estimate the potential impact, if any, on its business or financial statements at this time. The Company has subsequently received, and expects to receive in the future, similar shareholder claims. In October 2021, a purported class action captioned Underwood et al. v. Coinbase Global, Inc. , was filed in the U.S. District Court for the Southern District of New York against the Company alleging claims under Sections 5, 15(a)(1) and 29(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and violations of certain California and Florida state statutes. On March 11, 2022, plaintiffs filed an amended complaint adding Coinbase, Inc. and Brian Armstrong as defendants and adding causes of action. Among other relief requested, the plaintiffs sought injunctive relief, unspecified damages, attorneys’ fees and costs. On February 1, 2023, the court dismissed all federal claims (with prejudice) and state law claims (without prejudice) against Coinbase Global, Inc., Coinbase, Inc. and Brian Armstrong. Subsequently, on February 9, 2023, the plaintiffs appealed that ruling to the U.S. Court of Appeals for the Second Circuit (the “Court of Appeals”), and the parties completed briefing the appeal on September 13, 2023. The Court of Appeals has not set a date for oral argument. The defendants continue to dispute the claims in this case and intend to vigorously defend against them. Based on the nature of the proceedings in this case, the outcome of this matter remains uncertain and the Company cannot estimate the potential impact, if any, on its business or financial statements at this time. In December 2021, a shareholder derivative suit captioned Shin v. Coinbase Global, Inc. , was filed in New York state court against the Company and its directors, alleging breach of fiduciary duties, unjust enrichment, abuse of control, gross mismanagement, and waste of corporate assets, and seeking unspecified damages and injunctive relief. The Company has subsequently received, and expects to receive in the future, similar derivative claims. The Company disputes the claims in these cases and intends to vigorously defend against them. Based on the preliminary nature of the proceedings in these cases, the outcome of these matters remain uncertain and the Company cannot estimate the potential impact, if any, on its business or financial statements at this time. During 2022, the Company’s subsidiary, Coinbase, Inc., which holds a BitLicense from the New York Department of Financial Services (“NYDFS”) and is therefore subject to examinations and investigations by the NYDFS, was subject to an investigation by the NYDFS relating to its compliance program including compliance with the Bank Secrecy Act and sanctions laws, cybersecurity, and cu stomer support. In January 2023, the NYDFS announced a consent order focused on historical shortcomings in Coinbase, Inc.'s compliance program. Pursuant to the consent order, Coinbase, Inc. paid a $50.0 million penalty in January 2023 and agreed to invest an additional $50.0 million in its compliance function by the end of 2024. In April 2022, a dissenting stockholder to the Company’s acquisition of FairXchange, Inc. (“FairX”) filed a Verified Petition for Appraisal of Stock in the Court of Chancery of the State of Delaware seeking, among other relief, an appraisal of the fair value of their common and preferred shares of FairX stock. Petitioners contend that the valuation of FairX was higher than the valuation ascribed by the parties at the time of the transaction. The case is captioned Hyde Park Venture Partners Fund III, L.P. et al. v. FairXchange, LLC, et al . The case is scheduled for trial on November 13, 2023. Based on the nature of the proceedings in this case, the outcome of this matter remains uncertain and the Company cannot estimate the potential impact, if any, on its business or financial statements at this time. In June 2023, the SEC filed a complaint in the U.S. District Court for the Southern District of New York against the Company and Coinbase, Inc. alleging that Coinbase, Inc. has acted as an unregistered securities exchange, broker, and clearing agency in violation of Sections 5, 15(a) and 17A(b) of the Exchange Act and that, through its staking program, Coinbase, Inc. has offered and sold securities without registering its offers and sales in violation of Sections 5(a) and 5(c) of the Securities Act. The SEC has also alleged that the Company is liable for the alleged violations as an alleged control person of Coinbase, Inc. The case is captioned SEC v. Coinbase, Inc. et al . The SEC seeks, among other relief, injunctive relief, disgorgement and civil money penalties. The Company and Coinbase, Inc. filed an answer to the SEC complaint in June 2023, dispute the claims in this case, and intend to vigorously defend against them. On August 4, 2023, the Company and Coinbase, Inc. filed a motion for judgment on the pleadings. The SEC filed its response on October 3, 2023 and the Company and Coinbase, Inc. filed their reply on October 24, 2023. Oral argument has been scheduled for January 17, 2024. Based on the preliminary nature of the proceedings in this case, the outcome of this matter remains uncertain and the Company cannot estimate the potential impact, if any, on its business or financial statements at this time. An adverse resolution of the SEC’s lawsuit could have a material impact on the Company’s business and financial statements. In June 2023, the Company and Coinbase, Inc. were issued notices, show-cause orders, and cease-and-desist letters, and became the subject of various legal actions initiated by U.S. state securities regulators in the states of Alabama, California, Illinois, Kentucky, Maryland, New Jersey, South Carolina, Vermont, Washington and Wisconsin alleging violations of state securities laws with respect to staking services provided by Coinbase, Inc. In July 2023, the Company and Coinbase, Inc. entered into agreements with state securities regulators in California, New Jersey, South Carolina and Wisconsin, pursuant to which customers in those states will no longer be able to stake new funds, in each case pending final adjudication of the matters. In October 2023, the Company and Coinbase, Inc. entered into a similar agreement with the Maryland state securities regulator. The Company and Coinbase, Inc. dispute the claims of the state securities regulators and intend to vigorously defend against them. Based on the preliminary nature of these actions, the final outcome of these matters remains uncertain and the Company cannot estimate the potential impact on its business or financial statements at this time. An adverse resolution could have a material impact on the Company’s business and financial statements. The Company has, from time to time, received investigative subpoenas and requests from regulators for documents and information about certain customer programs, operations, and existing and intended future products, including the Company’s processes for listing assets, the classification of certain listed assets, its staking programs, and its stablecoin and yield-generating products. Except as otherwise disclosed, the Company believes the ultimate resolution of existing legal and regulatory investigation matters will not have a material adverse effect on the financial condition, results of operations, or cash flows of the Company. However, in light of the uncertainties inherent in these matters, it is possible that the ultimate resolution of one or more of these matters may have a material adverse effect on the Company’s results of operations for a particular period, and future changes in circumstances or additional information could result in additional accruals or resolution in excess of established accruals, which could adversely affect the Company’s results of operations, potentially materially. Tax regulation Current promulgated tax rules related to crypto assets are unclear and require significant judgments to be made in interpretation of the law, including but not limited to the areas of income tax, information reporting, transaction level taxes and the withholding of tax at source. Additional legislation or guidance may be issued by U.S. and non-U.S. governing bodies that may differ significantly from the Company's practices or interpretation of the law, which could have unforeseen effects on the Company’s financial condition and results of operations, and accordingly, the related impact on the Company’s financial condition and results of operations is not estimable. |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 9 Months Ended |
Sep. 30, 2023 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | RELATED PARTY TRANSACTIONS Revenue and accounts receivable Certain of the Company’s directors, executive officers, and principal owners, including immediate family members, are users of the Company’s platform. The Company recognized revenue from related party customers of $3.4 million and $1.9 million for the three months ended September 30, 2023 and September 30, 2022, respectively, and $11.6 million and $9.5 million for the nine months ended September 30, 2023 and September 30, 2022, respectively. As of September 30, 2023 and December 31, 2022, amounts receivable from related party customers were $3.4 million and $1.3 million, respectively. Customer assets and liabilities As of September 30, 2023 and December 31, 2022, safeguarding customer crypto assets and safeguarding customer crypto liabilities for related parties were $4.8 billion and $3.5 billion, respectively. As of September 30, 2023 and December 31, 2022, customer custodial funds and customer custodial cash liabilities due to related party customers were $71.6 million and $14.2 million, respectively. Prepaid and other assets During the nine months ended September 30, 2023 and 2022, the Company invested an aggregate of $1.9 million and $14.4 million, respectively, in investees in which certain related parties of the Company held an interest over 10%. Expenses and accounts payable During the three and nine months ended September 30, 2023, the Company incurred $0.4 million and $1.0 million, respectively, for professional and consulting services provided by entities affiliated with related parties. As of September 30, 2023 and December 31, 2022, amounts payable to related parties were $0.2 million and $0, respectively. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net loss | $ (2,265) | $ (544,635) | $ (178,566) | $ (2,067,948) |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended | 9 Months Ended |
Sep. 30, 2023 shares | Sep. 30, 2023 shares | |
Trading Arrangements, by Individual | ||
Non-Rule 10b5-1 Arrangement Adopted | false | |
Rule 10b5-1 Arrangement Terminated | false | |
Non-Rule 10b5-1 Arrangement Terminated | false | |
Brian Armstrong [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | The Company’s directors and Section 16 officers (as defined in Rule 16a-1(f) under the Exchange Act) are only permitted to trade in the Company’s securities pursuant to a prearranged trading plan intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act (a “Rule 10b5-1 Plan”). During the three months ended September 30, 2023, one of the Company’s directors and three of the Company’s Section 16 officers adopted new Rule 10b5-1 Plans. The Plans (as defined below) were entered into during an open trading window in accordance with the Company’s Insider Trading Policy and Trading Plan Policy. On August 16, 2023, Brian Armstrong, the Company’s Chief Executive Officer and a member of the Company’s board of directors, entered into a Rule 10b5-1 Plan (the “Armstrong Plan”) providing for the potential sale of up to 1,800,000 shares of the Class A common stock issuable upon the conversion of shares of the Class B common stock owned by The Brian Armstrong Living Trust, of which Mr. Armstrong is trustee, so long as the market price of the Class A common stock is higher than certain minimum threshold prices specified in the Armstrong Plan, between an estimated start date of November 16, 2023 and November 15, 2024. On August 21, 2023, Frederick Ernest Ehrsam III, a member of the Company’s board of directors, entered into a Rule 10b5-1 Plan (the “Ehrsam Plan”) providing for the potential sale of up to 1,697,748 shares of the Class A common stock owned by The Frederick Ernest Ehrsam III Living Trust, of which Mr. Ehrsam is trustee, so long as the market price of the Class A common stock is higher than certain minimum threshold prices specified in the Ehrsam Plan, between an estimated start date of November 22, 2023 and May 17, 2024. On August 23, 2023, Paul Grewal, the Company’s Chief Legal Officer and Secretary, entered into a Rule 10b5-1 Plan (the “Grewal Plan”) providing for the potential sale of up to 307,116 shares of the Class A common stock owned by Mr. Grewal, including upon the vesting and settlement of restricted stock units for shares of Class A common stock and the exercise of vested stock options for shares of the Class A common stock, so long as the market price of the Class A common stock is higher than certain minimum threshold prices specified in the Grewal Plan or, in certain circumstances, at the market price, between an estimated start date of November 27, 2023 and November 27, 2024. The Grewal Plan provides for the sale of shares of Class A common stock to be received upon the future vesting and settlement of certain outstanding restricted stock units, net of any shares withheld by the Company to satisfy applicable tax obligations. The number of shares to be withheld, and therefore the exact number of shares to be sold pursuant to the Grewal Plan, can only be determined upon the occurrence of the future vesting events. For purposes of this disclosure, we have included the maximum aggregate number of shares to be sold without subtracting any shares to be withheld upon future vesting events. On August 30, 2023, Emilie Choi, the Company’s President and Chief Operating Officer, entered into a Rule 10b5-1 Plan (the “Choi Plan” and collectively with the Armstrong Plan, the Ehrsam Plan and the Grewal Plan, the “Plans”) providing for the potential sale of up to 1,032,000 shares of the Class A common stock owned by Ms. Choi, including upon the exercise of vested stock options for shares of the Class A common stock, so long as the market price of the Class A common stock is higher than certain minimum threshold prices specified in the Choi Plan, between an estimated start date of November 29, 2023 and December 31, 2024. | |
Name | Brian Armstrong | |
Title | Chief Executive Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | August 16, 2023 | |
Arrangement Duration | 365 days | |
Aggregate Available | 1,800,000 | 1,800,000 |
Emilie Choi [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | The Company’s directors and Section 16 officers (as defined in Rule 16a-1(f) under the Exchange Act) are only permitted to trade in the Company’s securities pursuant to a prearranged trading plan intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act (a “Rule 10b5-1 Plan”). During the three months ended September 30, 2023, one of the Company’s directors and three of the Company’s Section 16 officers adopted new Rule 10b5-1 Plans. The Plans (as defined below) were entered into during an open trading window in accordance with the Company’s Insider Trading Policy and Trading Plan Policy. On August 16, 2023, Brian Armstrong, the Company’s Chief Executive Officer and a member of the Company’s board of directors, entered into a Rule 10b5-1 Plan (the “Armstrong Plan”) providing for the potential sale of up to 1,800,000 shares of the Class A common stock issuable upon the conversion of shares of the Class B common stock owned by The Brian Armstrong Living Trust, of which Mr. Armstrong is trustee, so long as the market price of the Class A common stock is higher than certain minimum threshold prices specified in the Armstrong Plan, between an estimated start date of November 16, 2023 and November 15, 2024. On August 21, 2023, Frederick Ernest Ehrsam III, a member of the Company’s board of directors, entered into a Rule 10b5-1 Plan (the “Ehrsam Plan”) providing for the potential sale of up to 1,697,748 shares of the Class A common stock owned by The Frederick Ernest Ehrsam III Living Trust, of which Mr. Ehrsam is trustee, so long as the market price of the Class A common stock is higher than certain minimum threshold prices specified in the Ehrsam Plan, between an estimated start date of November 22, 2023 and May 17, 2024. On August 23, 2023, Paul Grewal, the Company’s Chief Legal Officer and Secretary, entered into a Rule 10b5-1 Plan (the “Grewal Plan”) providing for the potential sale of up to 307,116 shares of the Class A common stock owned by Mr. Grewal, including upon the vesting and settlement of restricted stock units for shares of Class A common stock and the exercise of vested stock options for shares of the Class A common stock, so long as the market price of the Class A common stock is higher than certain minimum threshold prices specified in the Grewal Plan or, in certain circumstances, at the market price, between an estimated start date of November 27, 2023 and November 27, 2024. The Grewal Plan provides for the sale of shares of Class A common stock to be received upon the future vesting and settlement of certain outstanding restricted stock units, net of any shares withheld by the Company to satisfy applicable tax obligations. The number of shares to be withheld, and therefore the exact number of shares to be sold pursuant to the Grewal Plan, can only be determined upon the occurrence of the future vesting events. For purposes of this disclosure, we have included the maximum aggregate number of shares to be sold without subtracting any shares to be withheld upon future vesting events. On August 30, 2023, Emilie Choi, the Company’s President and Chief Operating Officer, entered into a Rule 10b5-1 Plan (the “Choi Plan” and collectively with the Armstrong Plan, the Ehrsam Plan and the Grewal Plan, the “Plans”) providing for the potential sale of up to 1,032,000 shares of the Class A common stock owned by Ms. Choi, including upon the exercise of vested stock options for shares of the Class A common stock, so long as the market price of the Class A common stock is higher than certain minimum threshold prices specified in the Choi Plan, between an estimated start date of November 29, 2023 and December 31, 2024. | |
Name | Emilie Choi | |
Title | President and Chief Operating Officer | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | August 30, 2023 | |
Arrangement Duration | 398 days | |
Aggregate Available | 1,032,000 | 1,032,000 |
Frederick Ernest Ehrsam III [Member] | ||
Trading Arrangements, by Individual | ||
Material Terms of Trading Arrangement | The Company’s directors and Section 16 officers (as defined in Rule 16a-1(f) under the Exchange Act) are only permitted to trade in the Company’s securities pursuant to a prearranged trading plan intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act (a “Rule 10b5-1 Plan”). During the three months ended September 30, 2023, one of the Company’s directors and three of the Company’s Section 16 officers adopted new Rule 10b5-1 Plans. The Plans (as defined below) were entered into during an open trading window in accordance with the Company’s Insider Trading Policy and Trading Plan Policy. On August 16, 2023, Brian Armstrong, the Company’s Chief Executive Officer and a member of the Company’s board of directors, entered into a Rule 10b5-1 Plan (the “Armstrong Plan”) providing for the potential sale of up to 1,800,000 shares of the Class A common stock issuable upon the conversion of shares of the Class B common stock owned by The Brian Armstrong Living Trust, of which Mr. Armstrong is trustee, so long as the market price of the Class A common stock is higher than certain minimum threshold prices specified in the Armstrong Plan, between an estimated start date of November 16, 2023 and November 15, 2024. On August 21, 2023, Frederick Ernest Ehrsam III, a member of the Company’s board of directors, entered into a Rule 10b5-1 Plan (the “Ehrsam Plan”) providing for the potential sale of up to 1,697,748 shares of the Class A common stock owned by The Frederick Ernest Ehrsam III Living Trust, of which Mr. Ehrsam is trustee, so long as the market price of the Class A common stock is higher than certain minimum threshold prices specified in the Ehrsam Plan, between an estimated start date of November 22, 2023 and May 17, 2024. On August 23, 2023, Paul Grewal, the Company’s Chief Legal Officer and Secretary, entered into a Rule 10b5-1 Plan (the “Grewal Plan”) providing for the potential sale of up to 307,116 shares of the Class A common stock owned by Mr. Grewal, including upon the vesting and settlement of restricted stock units for shares of Class A common stock and the exercise of vested stock options for shares of the Class A common stock, so long as the market price of the Class A common stock is higher than certain minimum threshold prices specified in the Grewal Plan or, in certain circumstances, at the market price, between an estimated start date of November 27, 2023 and November 27, 2024. The Grewal Plan provides for the sale of shares of Class A common stock to be received upon the future vesting and settlement of certain outstanding restricted stock units, net of any shares withheld by the Company to satisfy applicable tax obligations. The number of shares to be withheld, and therefore the exact number of shares to be sold pursuant to the Grewal Plan, can only be determined upon the occurrence of the future vesting events. For purposes of this disclosure, we have included the maximum aggregate number of shares to be sold without subtracting any shares to be withheld upon future vesting events. On August 30, 2023, Emilie Choi, the Company’s President and Chief Operating Officer, entered into a Rule 10b5-1 Plan (the “Choi Plan” and collectively with the Armstrong Plan, the Ehrsam Plan and the Grewal Plan, the “Plans”) providing for the potential sale of up to 1,032,000 shares of the Class A common stock owned by Ms. Choi, including upon the exercise of vested stock options for shares of the Class A common stock, so long as the market price of the Class A common stock is higher than certain minimum threshold prices specified in the Choi Plan, between an estimated start date of November 29, 2023 and December 31, 2024. | |
Name | Frederick Ernest Ehrsam III | |
Title | member of the Company’s board of directors | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | August 21, 2023 | |
Arrangement Duration | 177 days | |
Aggregate Available | 1,697,748 | 1,697,748 |
Paul Grewal [Member] | ||
Trading Arrangements, by Individual | ||
Name | Paul Grewal | |
Title | Chief Legal Officer and Secretary | |
Rule 10b5-1 Arrangement Adopted | true | |
Adoption Date | August 23, 2023 | |
Arrangement Duration | 366 days | |
Aggregate Available | 307,116 | 307,116 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
Basis of presentation and principles of consolidation | Basis of presentation and principles of consolidation The accompanying condensed consolidated financial statements of the Company are unaudited. These unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) on the same basis as the audited consolidated financial statements and in management’s opinion, reflect all the adjustments, consisting only of normal, recurring adjustments, that are necessary for the fair statement of the Company’s condensed consolidated financial statements for the periods presented. The unaudited condensed consolidated results of operations for the three and nine months ended September 30, 2023 are not necessarily indicative of the results to be expected for the full year or any other period. These condensed consolidated financial statements a nd accompanying notes should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s annual report on Form 10-K for the year ended December 31, 2022 filed with the Securities and Exchange Commission (the “SEC”) on February 21 , 2023 (the “Annual Report”). Thes e condensed consolidated financial statements include the accounts of the Company and its subsidiaries. The Company’s subsidiaries are entities in which the Company holds, directly or indirectly, more than 50% of the voting rights, or where it exercises control. Certain subsidiaries of the Company have a basis of presentation different from GAAP. For the purposes of these unaudited condensed consolidated financial statements, the basis of presentation of such subsidiaries is converted to GAAP. All intercompany accounts and transactions have been eliminated in consolidation. There were no changes to the significant accounting policies or recent accounting pronouncements that were disclosed in Note 2. Summary of Significant Accounting Policies to the audited consolidated financial statements included in the Annual Report, other than as discussed below. |
Reclassifications | Reclassifications Certain prior period amounts have been reclassified in order to conform with the current period presentation. These reclassifications have no impact on the Company’s previously reported consolidated net loss. |
Use of estimates | Use of estimates The preparation of th e condensed consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions in the Company’s condensed consolidated financial statements and notes thereto. Significant estimates and assumptions include the determination of the recognition, measurement, and valuation of current and deferred income taxes; the fair value of performance stock-based awards issued; the useful lives of long-lived assets; the impairment of long-lived assets; the valuation of privately-held strategic investments, including impairments; the fair value of safeguarding customer crypto assets and liabilities; the fair value of assets acquired and liabilities assumed in business combinations; the fair value of derivatives and related hedges; assessing the likelihood of adverse outcomes from claims and disputes; and loss provisions. Actual results and outcomes may differ from management’s estimates and assumptions due to risks and uncertainties. To the extent that there are material differences between these estimates and actual results, the Comp any’s condensed consolidated financial statements will be affected. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the result of which forms the basis for making judgments about the carrying values of assets and liabilities. |
Customer custodial funds and customer custodial cash liabilities | Customer custodial funds and customer custodial cash liabilities Customer custodial funds represent restricted cash and cash equivalents maintained in segregated Company bank accounts that are held for the exclusive benefit of customers and deposits in transit from payment processors and financial institutions. Under GAAP, the balance in these accounts that exceeds customer custodial cash liabilities is presented within cash and cash equivalents. Customer custodial cash liabilities represent the obligation to return cash deposits held by customers in their fiat wallets and unsettled fiat deposits and withdrawals. Deposits in transit represent settlements from third-party payment processors and banks for customer transactions. Deposits in transit are typically received within five business days of the transaction date. The Company establishes withdrawal-based limits in order to mitigate potential losses by preventing customers from withdrawing the crypto asset to an external blockchain address until the deposit settles. In certain jurisdictions, deposits in transit qualify as eligible liquid assets to meet regulatory requirements to fulfill the Company’s direct obligations under customer custodial cash liabilities. The Company restricts the use of the assets underlying the customer custodial funds to meet regulatory requirements and classifies the assets as current based on their purpose and availability to fulfill the Company’s direct obligation under customer custodial cash liabilities. Certain jurisdictions where the Company operates require the Company to hold eligible liquid assets, as defined by applicable regulatory requirements and commercial law in these jurisdictions, equal to at least 100% of the aggregate amount of all customer custodial cash liabilities. Depending on the jurisdiction, eligible liquid assets can include cash and cash equivalents, customer custodial funds, and certain other customer receivables. As of September 30, 2023 and December 31, 2022, the Company’s eligible liquid assets were greater than the aggregate amount of customer custodial cash liabilities. |
Concentration of credit risk | Concentration of credit risk The Company’s cash and cash equivalents, restricted cash, customer custodial funds, and accounts and loans receivable are potentially subject to concentration of credit risk. Cash and cash equivalents, restricted cash, and customer custodial funds are primarily placed with financial institutions which are of high credit quality. The Company invests cash and cash equivalents, and customer custodial funds primarily in highly liquid, highly rated instruments which are uninsured. The Company may also have corporate deposit balances with financial institutions which exceed the Federal Deposit Insurance Corporation insurance limit of $250,000. The Company has not experienced losses on these accounts and does not believe it is exposed to any significant credit risk with respect to these accounts. The Company also holds cash and crypto at crypto trading venues and performs a regular assessment of these crypto trading venues as part of its risk management process. The Company held $400.8 million and $861.1 million of USDC as of September 30, 2023 and December 31, 2022, respectively. The issuer of USDC reported that, as of September 30, 2023, underlying reserves were held in cash, short-duration U.S. Treasuries, and overnight U.S. Treasury repurchase agreements within segregated accounts for the benefit of USDC holders. As of September 30, 2023 and December 31, 2022, the Company had two and one counterparties, respectively, who accounted for more than 10% of the Company’s accounts and loans receivable, net. See Note 11. Collateral for details on collateralization of loans receivable. During the three and nine months ended September 30, 2023 and September 30, 2022, one and no |
Recent accounting pronouncements | Recent accounting pronouncements Accounting pronouncements pending adoption On March 28, 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2023-01, Leases (Topic 842): Common Control Arrangements (“ASU 2023-01”). The amendments in ASU 2023-01 improve current GAAP by clarifying the accounting for leasehold improvements associated with common control leases, thereby reducing diversity in practice. Additionally, the amendments provide investors and other allocators of capital with financial information that better reflects the economics of those transactions. The new standard is effective for the Company for its fiscal year beginning January 1, 2024, with early adoption permitted. The Company is currently evaluating the impact of adopting the standard. On June 30, 2022, FASB issued Accounting Standards Update No. 2022-03, Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (“ASU 2022-03”). ASU 2022-03 clarifies that a contractual sale restriction prohibiting the sale of an equity security is a characteristic of the reporting entity holding the equity security and is not included in the equity security's unit of account. The standard requires specific disclosures related to equity securities that are subject to contractual sale restrictions, including (1) the fair value of such equity securities reflected in the balance sheet, (2) the nature and remaining duration of the corresponding restrictions, and (3) any circumstances that could cause a lapse in the restrictions. The new standard is effective for the Company for its fiscal year beginning January 1, 2024, with early adoption permitted. The Company is currently evaluating the impact of adopting the standard. |
Revenue recognition | Revenue recognition The Company determines revenue recognition from contracts with customers through the following steps : • identification of the contract, or contracts, with the customer; • identification of the performance obligations in the contract; • determination of the transaction price; • allocation of the transaction price to the performance obligations in the contract; and • recognition of the revenue when, or as, the Company satisfies a performance obligation. Revenue is recognized when control of the promised goods or services is transferred to the customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. Transaction revenue Consumer transaction revenue represents transaction fees earned from customers that are primarily individuals, while institutional transaction revenue represents transaction fees earned from institutional customers, such as hedge funds, family offices, principal trading firms, and financial institutions. The Company’s service is comprised of a single performance obligation to provide a crypto asset matching service when customers buy, sell or convert crypto assets, or trade derivatives. That is, the Company is an agent in transactions between customers and presents revenue for the fees earned on a net basis. Judgment is required in determining whether the Company is the principal or the agent in transactions between customers. The Company evaluates the presentation of revenue on a gross or net basis based on whether it controls the crypto asset provided before it is transferred to the customer (gross) or whether it acts as an agent by arranging for other customers to provide the crypto asset to the customer (net). The Company does not control the crypto asset being provided before it is transferred to the buyer, does not have inventory risk related to the crypto asset, and is not responsible for the fulfillment of the crypto asset. The Company also does not set the price for the crypto asset as the price is a market rate established by users of the platform. As a result, the Company acts as an agent in facilitating the ability for a customer to purchase crypto assets from another customer. The Company considers its performance obligation satisfied, and recognizes revenue, at the point in time the transaction is processed. Contracts with customers are usually open-ended and can be terminated by either party without a termination penalty. Therefore, contracts are defined at the transaction level and do not extend beyond the service already provided. The Company charges a fee at the transaction level. The transaction price, represented by the transaction fee, is calculated based on volume and varies depending on payment type and the value of the transaction. Crypto asset purchase or sale transactions executed by a customer on the Company’s platform is based on tiered pricing that is driven primarily by transaction volume processed for a specific historical period. The Company has concluded that this volume-based pricing approach does not constitute a future material right since the discount is within a range typically offered to a class of customers with similar volume. The transaction fee is collected from the customer at the time the transaction is executed. In certain instances, the transaction fee can be collected in crypto assets, with revenue measured based on the amount of crypto assets received and the fair value of the crypto assets at the time of the transaction. The transaction price includes estimates for reductions in revenue from transaction fee reversals that may not be recovered from customers. Such reversals occur when the customer disputes a transaction processed on their credit card or their bank account for a variety of reasons and seeks to have the charge reversed after the Company has processed the transaction. These amounts are estimated based upon the most likely amount of consideration to which the Company will be entitled. All estimates are based on historical experience and the Company’s best judgment at the time to the extent it is probable that a significant reversal of revenue recognized will not occur. All estimates of variable consideration are reassessed periodically. The total transaction price is allocated to the single performance obligation. While the Company recognizes transaction fee reversals as a reduction of net revenue, crypto asset losses related to those same transaction reversals are included in transaction expense. Stablecoin revenue Since 2018, the Company has earned income on fiat funds under an arrangement with the issuer of USDC which was included in interest income within subscriptions and services revenue. On August 18, 2023, the Company entered into an updated arrangement with the same counterparty. Pursuant to the arrangement, the Company earns a pro rata portion of income earned on USDC reserves based on the amount of USDC held on each respective party’s platform, and from the distribution and usage of USDC after certain expenses. Revenue derived by the Company from this arrangement is dependent on various factors including the balance of USDC on the Company’s platform, the total market capitalization of USDC, and the prevailing interest rate environment. The agreement is treated as an executory contract accounted for on an accrual basis. Prior period revenue recognized under the previous arrangement was reclassified to the stablecoin revenue line within subscription and services revenue, to conform to current period presentation. Blockchain rewards Blockchain rewards are primarily comprised of staking revenue, in which the Company participates in networks with proof-of-stake consensus algorithms through creating or validating blocks on the network using the staking validators that it controls. Blockchain protocols, or the participants that form the protocol networks, reward users for performing various activities on the blockchain. The most common form today is participating in proof-of-stake networks, however, there are other consensus algorithms. The Company considers itself the principal in transactions with the blockchain networks, and therefore presents such blockchain rewards earned on a gross basis. In exchange for participating in the consensus mechanism of these networks, the Company recognizes revenue in the form of the native token of the network. Each block creation or validation is a performance obligation. Revenue is recognized at the point when the block creation or validation is complete and the rewards are transferred into a digital wallet that the Company controls. Revenue is measured based on the number of tokens received and the fair value of the token at contract inception. Blockchain services offered as part of Coinbase Cloud’s blockchain infrastructure solutions are included in other subscription and services revenue. The Company’s staking revenue is included within blockchain rewards. Interest income and corporate interest income The Company holds customer custodial funds and cash and cash equivalents at certain third-party banks which earn interest. Interest income earned from customer custodial funds, cash and cash equivalents and loans is calculated using the interest method and is not within the scope of Topic 606 – Revenue from Contracts with Customers . Interest earned on customer custodial funds and loans is included in interest income within subscription and services revenue. Interest earned on the Company’s corporate cash and cash equivalents is included in corporate interest and other income within other revenue. Custodial fee revenue The Company provides a dedicated secure cold storage solution to customers and earns a fee, which is based on a contractual percentage of the daily value of assets under custody. The fee is collected on a monthly basis. These contracts typically have one performance obligation which is provided and satisfied over the term of the contracts as customers simultaneously receive and consume the benefits of the services. The contract may be terminated by a customer at any time, without incurring a penalty. Customers are billed on the last day of the month during which services were provided, with the amounts generally being due within thirty days of receipt of the invoice. Accounts receivable from customers for custodial fee revenue, net of allowance, were $10.0 million and $7.8 million as of September 30, 2023 and December 31, 2022, respectively. The allowance recognized against these fees was not material for any of the periods presented. Other subscription and services revenue Other subscription and services revenue primarily comprises revenue from Coinbase One, Coinbase Cloud, which includes staking application, delegation, and infrastructure services, Learning Rewards campaign revenue, Prime Financing, and revenue from other subscription licenses. Generally, revenue from other subscription and services contains one performance obligation, may have variable and non-cash consideration, and is recognized at a point in time or over the period that services are provided. Accounts receivable from customers for other subscriptions and services revenue, net of allowance, were $14.6 million and $13.1 million as of September 30, 2023 and December 31, 2022, respectively. The allowance recognized against these fees was not material for any of the periods presented. |
Loans receivable | the Company’s credit exposure is significantly limited and no allowance, write-offs or recoveries were recorded against these loans receivable. |
RESTRUCTURING (Tables)
RESTRUCTURING (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and related costs | The following expenses were recognized within restructuring expenses in the condensed consolidated statements of operations for the three and nine months ended September 30, 2023 (in thousands): Three Months Ended September 30, 2023 Nine Months Ended September 30, 2023 Separation pay (1) $ (860) $ 56,733 Stock-based compensation (2) — 84,042 Other personnel costs — 1,819 Total $ (860) $ 142,594 __________________ (1) Reduction of $0.9 million during the three months ended September 30, 2023 was due to the release of accruals for certain separation pay expenses recorded as of June 30, 2023 which were not utilized. (2) Represents stock-based compensation expenditures for the nine months ended September 30, 2023 relating to the acceleration of the vesting of outstanding equity awards in accordance with the terms of such awards. The following expenses were recognized within restructuring expenses in the condensed consolidated statements of operations for the three and nine months ended September 30, 2022 (in thousands): Three Months Ended September 30, 2022 Nine Months Ended September 30, 2022 Separation pay $ — $ 39,259 Other personnel costs (1) (1,232) 1,962 Total $ (1,232) $ 41,221 _________________ (1) Reduction of $1.2 million during the three months ended September 30, 2023 was due to the release of accruals for certain other personnel costs recorded as of June 30, 2022 which were not utilized. |
Schedule of restructuring reserve by type of cost | The following table summarizes the balance of the 2023 Restructuring reserve and the changes in the reserve as of and for the nine months ended September 30, 2023 (in thousands): Expenses Incurred (1) Payments Adjustments (2) Accrued Balance as of September 30, 2023 Separation pay $ 57,745 $ (56,733) $ (1,012) $ — Other personnel costs 2,702 (1,819) (883) — Total $ 60,447 $ (58,552) $ (1,895) $ — _________________ (1) Excludes stock-based compensation as it was not reflected in the Company’s restructuring reserve on the condensed consolidated balance sheets. The following table summarizes the balance of the 2022 Restructuring reserve and the changes in the reserve as of and for the nine months ended September 30, 2022 (in thousands). The associated liability that remained outstanding as of September 30, 2022 was recorded in accrued expenses and other current liabilities on the condensed consolidated balance sheets: Expenses Incurred Payments Adjustments Accrued Balance as of September 30, 2022 Separation pay $ 39,259 $ (37,940) $ — $ 1,319 Other personnel costs 3,194 (1,480) (1,232) 482 Total $ 42,453 $ (39,420) $ (1,232) $ 1,801 |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Business Combination and Asset Acquisition [Abstract] | |
Schedule of business acquisitions by acquisition | The total consideration transferred in the acquisition was $96.8 million, consisting of the following (in thousands): Cash $ 30,830 Cash payable 1,005 Previously-held interest on acquisition date 20,000 Class A common stock of the Company 44,995 Total purchase consideration $ 96,830 The total consideration transferred in the acquisition was $258.0 million, consisting of the following (in thousands): Cash $ 151,424 Cash payable 126 Class A common stock of the Company 103,977 RSUs for shares of the Company’s Class A common stock 2,457 Total purchase consideration $ 257,984 The total consideration transferred in the acquisition was $275.1 million, consisting of the following (in thousands): Cash $ 56,726 Cash payable 10,442 Class A common stock of the Company - issued 174,229 Class A common stock of the Company - to be issued 33,693 Total purchase consideration $ 275,090 |
Schedule of recognized identified assets acquired and liabilities assumed | The results of operations and the provisional fair values of the assets acquired and liabilities assumed have been included in the condensed consolidated financial statements as of the date of acquisition. The following table summarizes the preliminary fair values of assets acquired and liabilities assumed as of the date of acquisition (in thousands): Cash and cash equivalents $ 100 Accounts and loans receivable, net of allowance 425 Prepaid expenses and other current assets 134 Goodwill 65,764 Intangible assets, net 21,100 Other non-current assets 9,911 Total assets 97,434 Accounts payable 604 Total liabilities 604 Net assets acquired $ 96,830 The results of operations and the fair values of the assets acquired and liabilities assumed have been included in the condensed consolidated financial statements from the date of acquisition. The following table summarizes the preliminary fair values of assets acquired and liabilities assumed as of the date of acquisition (in thousands): Cash and cash equivalents $ 10,560 Restricted cash 573 Accounts and loans receivable, net of allowance 4,981 Prepaid expenses and other current assets 4,182 Lease right-of-use assets 1,059 Property and equipment, net 1,248 Goodwill 222,732 Intangible assets, net 28,500 Other non-current assets 3,476 Total assets 277,311 Accounts payable 719 Accrued expenses and other current liabilities 11,325 Lease liabilities 1,059 Other non-current liabilities 6,224 Total liabilities 19,327 Net assets acquired $ 257,984 Cash and cash equivalents $ 10,867 Accounts and loans receivable, net of allowance 411 Prepaid expenses and other current assets 20 Intangible assets, net 41,000 Goodwill 231,685 Other non-current assets 8,295 Total assets 292,278 Accounts payable 472 Accrued expenses and other current liabilities 5,796 Other non-current liabilities 10,920 Total liabilities 17,188 Net assets acquired $ 275,090 |
Schedule of components of finite lived and indefinite lived identifiable intangible assets acquired | The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in thousands, except for years data): Fair Value Useful Life at Acquisition (in years) Licenses $ 1,100 Indefinite Customer relationships 17,100 6 In-process research and development ("IPR&D") 2,900 N/A The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in thousands, except for years data): Fair Value Useful Life at Acquisition (in Years) Developed technology $ 15,700 1 - 5 IPR&D 2,500 N/A Customer relationships 10,300 2 The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in thousands, except for years data): Fair Value Useful Life at Acquisition (in Years) DCM License $ 26,900 Indefinite Developed technology 10,700 5 Trading relationships 3,400 3 |
REVENUE (Tables)
REVENUE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of disaggregated revenue by source | The following table presents revenue of the Company disaggregated by revenue source (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Net revenue Transaction revenue Consumer, net $ 274,505 $ 346,091 $ 936,944 $ 1,928,145 Institutional, net 14,070 19,777 53,442 105,973 Total transaction revenue 288,575 365,868 990,386 2,034,118 Subscription and services revenue Stablecoin revenue 172,357 76,858 522,650 99,977 Blockchain rewards 74,461 62,759 235,824 213,064 Interest income 39,467 24,920 131,360 44,769 Custodial fee revenue 15,805 14,532 49,839 68,404 Other subscription and services revenue 32,339 31,438 91,843 83,537 Total subscription and services revenue 334,429 210,507 1,031,516 509,751 Total net revenue 623,004 576,375 2,021,902 2,543,869 Other revenue Corporate interest and other income 51,144 13,964 132,686 21,231 Total other revenue 51,144 13,964 132,686 21,231 Total revenue $ 674,148 $ 590,339 $ 2,154,588 $ 2,565,100 |
Schedule of revenues disaggregated by geography | In the table below are the revenues disaggregated by geography, based on domicile of the customers or booking location, as applicable (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 United States $ 603,648 $ 501,963 $ 1,928,278 $ 2,125,010 Rest of the World (1) 70,500 88,376 226,310 440,090 Total revenue $ 674,148 $ 590,339 $ 2,154,588 $ 2,565,100 __________________ (1) No other individual country accounted for more than 10% of total revenue. |
ACCOUNTS AND LOANS RECEIVABLE_2
ACCOUNTS AND LOANS RECEIVABLE, NET OF ALLOWANCE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Schedule of accounts receivable, net of allowance | Accounts and loans receivable, net of allowance consisted of the following (in thousands): September 30, December 31, 2023 2022 Stablecoin revenue receivable $ 57,820 $ 179,996 Customer fee revenue receivable (1) 34,846 23,014 Loans receivable (2) 215,928 98,203 Crypto asset loans receivable 57,517 85,826 Other receivables 53,211 28,837 Allowance for doubtful accounts (3) (21,856) (11,500) Total accounts and loans receivable, net of allowance $ 397,466 $ 404,376 __________________ (1) Includes accounts receivables denominated in crypto assets of $10.0 million and $6.9 million as of September 30, 2023 and December 31, 2022, respectively. See Note 13. Derivatives for additional details (2) As of September 30, 2023 and December 31, 2022, loans receivable did not include $88.1 million and $2.8 million, respectively, of receivables as these loaned assets did not meet the criteria for derecognition. (3) Includes provision for transaction losses of $2.2 million and $3.2 million as of September 30, 2023 and December 31, 2022, respectively. |
GOODWILL, INTANGIBLE ASSETS, _2
GOODWILL, INTANGIBLE ASSETS, NET AND CRYPTO ASSETS HELD (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill | The following table reflects the changes in the carrying amount of goodwill (in thousands): Nine Months Ended September 30, 2023 Year Ended December 31, 2022 Balance, beginning of period $ 1,073,906 $ 625,758 Additions due to business combinations 65,764 454,417 Measurement period adjustments (1) — (6,269) Balance, end of period $ 1,139,670 $ 1,073,906 __________________ (1) The measurement period adjustments during the year ended December 31, 2022 consisted of $4.1 million, $0.3 million and $1.9 million related to the Unbound acquisition, FairX acquisition and certain other acquisitions that were material when aggregated, respectively, and which were associated with the changes in deferred tax assets as a result of changes in estimates. There were no measurement period adjustments during the three and nine months ended September 30, 2023. |
Schedule of finite-lived intangible assets | Intangible assets, net consisted of the following (in thousands, except years data): As of September 30, 2023 Gross Carrying Amount Accumulated Amortization Intangible Assets, Net Weighted Average Remaining Useful Life (in Years) Amortizing intangible assets Acquired developed technology $ 119,991 $ (102,348) $ 17,643 3.1 User base 2,997 (2,943) 54 0.1 Customer relationships 103,791 (61,014) 42,777 3.3 Non-compete agreement 2,402 (2,002) 400 0.8 Trade relationships 3,400 (1,889) 1,511 1.3 IPR&D (1) 4,300 — 4,300 N/A Indefinite-lived intangible assets Domain name 250 — 250 N/A Licenses 28,000 — 28,000 N/A Total $ 265,131 $ (170,196) $ 94,935 __________________ (1) Amortization begins once the technology is placed in service. IPR&D is expected to have a useful life of three years once placed in service. As of December 31, 2022 Gross Carrying Amount Accumulated Amortization Intangible Assets, Net Weighted Average Remaining Useful Life (in Years) Amortizing intangible assets Acquired developed technology $ 126,692 $ (81,172) $ 45,520 2.3 User base 2,997 (2,154) 843 0.8 Customer relationships 86,691 (45,717) 40,974 2.6 Non-compete agreement 2,402 (1,641) 761 1.6 Assembled workforce 60,800 (44,857) 15,943 0.4 Trade relationships 3,400 (1,039) 2,361 2.1 IPR&D (1) 1,877 — 1,877 N/A Indefinite-lived intangible assets Domain name 250 — 250 N/A Licenses 26,900 — 26,900 N/A Total $ 312,009 $ (176,580) $ 135,429 __________________ (1) Amortization begins once the technology is placed in service. IPR&D is expected to have a useful life of three years once placed in service. |
Schedule of indefinite-lived intangible assets | Intangible assets, net consisted of the following (in thousands, except years data): As of September 30, 2023 Gross Carrying Amount Accumulated Amortization Intangible Assets, Net Weighted Average Remaining Useful Life (in Years) Amortizing intangible assets Acquired developed technology $ 119,991 $ (102,348) $ 17,643 3.1 User base 2,997 (2,943) 54 0.1 Customer relationships 103,791 (61,014) 42,777 3.3 Non-compete agreement 2,402 (2,002) 400 0.8 Trade relationships 3,400 (1,889) 1,511 1.3 IPR&D (1) 4,300 — 4,300 N/A Indefinite-lived intangible assets Domain name 250 — 250 N/A Licenses 28,000 — 28,000 N/A Total $ 265,131 $ (170,196) $ 94,935 __________________ (1) Amortization begins once the technology is placed in service. IPR&D is expected to have a useful life of three years once placed in service. As of December 31, 2022 Gross Carrying Amount Accumulated Amortization Intangible Assets, Net Weighted Average Remaining Useful Life (in Years) Amortizing intangible assets Acquired developed technology $ 126,692 $ (81,172) $ 45,520 2.3 User base 2,997 (2,154) 843 0.8 Customer relationships 86,691 (45,717) 40,974 2.6 Non-compete agreement 2,402 (1,641) 761 1.6 Assembled workforce 60,800 (44,857) 15,943 0.4 Trade relationships 3,400 (1,039) 2,361 2.1 IPR&D (1) 1,877 — 1,877 N/A Indefinite-lived intangible assets Domain name 250 — 250 N/A Licenses 26,900 — 26,900 N/A Total $ 312,009 $ (176,580) $ 135,429 __________________ (1) Amortization begins once the technology is placed in service. IPR&D is expected to have a useful life of three years once placed in service. Crypto assets held consisted of the following (in thousands): September 30, December 31, 2023 2022 Recorded at impaired cost Crypto assets held as investments $ 310,873 $ 155,251 Crypto assets held for operating purposes 82,003 67,577 Crypto assets borrowed 6,546 — Total crypto assets held recorded at impaired cost 399,422 222,828 Recorded at fair value (1) Crypto assets held as investments — 133,416 Crypto assets held for operating purposes 6,672 — Crypto assets borrowed 49,892 68,149 Total crypto assets held recorded at fair value 56,564 201,565 Total crypto assets held $ 455,986 $ 424,393 __________________ |
Schedule of finite-lived intangible assets, future amortization expense | The expected future amortization expense for amortizing intangible assets other than IPR&D as of September 30, 2023 is as follows (in thousands): 2023 (for the remainder of) $ 8,197 2024 24,216 2025 15,966 2026 7,665 2027 3,026 Thereafter 3,315 Total expected future amortization expense $ 62,385 |
Schedule of impaired intangible assets | Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 (in thousands) (in thousands) Gross crypto asset impairment expense $ 22,868 $ 25,918 $ 77,151 $ 689,077 Recoveries (15,688) (13,768) (60,062) (34,115) Crypto asset impairment, net $ 7,180 $ 12,150 $ 17,089 $ 654,962 |
CUSTOMER ASSETS AND LIABILITI_2
CUSTOMER ASSETS AND LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of customers' cash and crypto positions | The following table presents customers’ cash and safeguarded crypto positions (in thousands): September 30, December 31, 2023 2022 Customer custodial funds $ 3,474,489 $ 5,041,119 Safeguarding customer crypto assets 114,291,909 75,413,188 Total customer assets $ 117,766,398 $ 80,454,307 Customer custodial cash liabilities $ 3,474,489 $ 4,829,587 Safeguarding customer crypto liabilities 114,291,909 75,413,188 Total customer liabilities $ 117,766,398 $ 80,242,775 |
Platform operator, crypto-asset | The following table sets forth the fair values of safeguarded customer crypto assets that were greater than 10% of the total safeguarded customer crypto assets recorded for the applicable period, as shown on the condensed consolidated balance sheets (in billions): September 30, 2023 December 31, 2022 Fair Value Percentage of Total (1) Fair Value Percentage of Total (1) Bitcoin $ 55.7 48.7 % $ 32.5 43.1 % Ethereum (2) 29.5 25.8 % 20.8 27.6 % Other crypto assets 29.1 25.5 % 22.1 29.3 % Total safeguarding customer crypto assets $ 114.3 100.0 % $ 75.4 100.0 % __________________ (1) As of September 30, 2023 and December 31, 2022, no assets other than Bitcoin and Ethereum individually represented more than 5% of total safeguarding customer crypto assets. (2) As of September 30, 2023 and December 31, 2022, Ethereum included $7.1 billion and $3.0 billion, respectively, of staked Ethereum. |
PREPAID EXPENSES AND OTHER AS_2
PREPAID EXPENSES AND OTHER ASSETS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Schedule of prepaid expenses and other current and non-current assets | Prepaid expenses and other current assets, and other non-current assets consisted of the following (in thousands): September 30, December 31, 2023 2022 Prepaid expenses and other current assets Prepaid expenses $ 88,101 $ 98,204 Assets pledged as collateral (1) 50,081 100,007 Other 19,532 18,837 Total prepaid expenses and other current assets $ 157,714 $ 217,048 Other non-current assets Strategic investments $ 357,075 $ 326,683 Deferred tax assets 1,105,992 1,046,791 Deposits 12,238 10,989 Other 2,791 17,257 Total other non-current assets $ 1,478,096 $ 1,401,720 _______________ (1) Includes $46.1 million and $58.4 million as of September 30, 2023 and December 31, 2022, respectively, of the right to receive a fixed amount of USDC pledged as collateral. See Note 11. Collateral for additional details on assets pledged as collateral. |
Schedule of other investments accounted for under the measurement alternative | The changes in the carrying value of strategic investments accounted for under the measurement alternative are presented below (in thousands): Nine Months Ended September 30, 2023 2022 Carrying amount, beginning of period $ 315,285 $ 352,431 Net additions (1) 54,271 57,058 Upward adjustments 62 879 Previously held interest in ORDAM (see Note 4) (20,000) — Impairments and downward adjustments (5,774) (70,631) Carrying amount, end of period (2) $ 343,844 $ 339,737 __________________ (1) Net additions include additions from purchases and reductions due to exits of securities and reclassifications due to changes to capital structure. (2) Excludes $13.2 million and $17.3 million as of September 30, 2023 and 2022, respectively, of strategic investments that are not accounted for under the measurement alternative. |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of accounts payable and accrued expenses | Accrued expenses and other current liabilities consisted of the following (in thousands): September 30, December 31, 2023 2022 Accrued expenses $ 84,369 $ 75,532 Accrued payroll and payroll related 182,774 90,257 Income taxes payable 14,663 5,534 Short-term borrowings — 20,519 Obligation to return collateral (1) 32,815 26,874 Other payables (2) 59,753 112,520 Total accrued expenses and other current liabilities $ 374,374 $ 331,236 __________________ (1) See Note 11. Collateral for additional details on obligation to return collateral. (2) Includes other payables denominated in crypto assets of $11.6 million and $8.8 million as of September 30, 2023 and December 31, 2022, respectively. See Note 13. Derivatives for additional details. |
COLLATERAL (Tables)
COLLATERAL (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Summary of collateral positions held | The following is a summary of the Company’s collateral positions: Type of Collateral Description of Collateral Location on Assets pledged as collateral The Company enters into fiat and crypto asset borrowing arrangements with certain institutional customers that require the Company to post collateral in the form of fiat or crypto assets, including stablecoins, in which the lender may have the right to sell, repledge or rehypothecate such collateral without the Company’s consent. The Company also enters into certain derivative contracts which requires the Company to post collateral in the form of fiat. The Company is required to maintain a collateral to loan ratio per the borrowing arrangements, and in the event that crypto asset prices rise, the Company will have to post additional collateral to maintain required collateral ratios. If the lender has the right to use the collateral or if the collateral is fiat, the Company presents the collateral pledged as a right to receive the collateral. The lender is not obligated to return the collateral if the Company defaults on its borrowings. As of September 30, 2023, the Company has not defaulted on any of its borrowings. Prepaid expenses and other current assets Obligation to return collateral For loans receivable and crypto asset loans receivable, the Company requires borrowers to post collateral for which it then has an obligation to return the collateral to the borrower. As of September 30, 2023, the collateral requirements ranged from 128% to 250% of the fair value of the loan, and the borrower is required to pledge additional assets to maintain their required collateral percentage. The collateral pledged by borrowers is held on the Company’s platform and the Company may have the right to use the collateral. For loans receivable, the Company does not record collateral received unless the Company has both a right to use the collateral and has sold the collateral. For crypto asset loans receivable, if the Company has the right to use collateral denominated in USDC or crypto assets, or if the collateral is fiat, the Company records the collateral as an asset with a corresponding obligation to return collateral. The Company is not obligated to return the collateral if the borrower defaults. Accrued expenses and other current liabilities Off-balance sheet collateral arrangements The Company may post collateral with lenders which are not recognized as assets pledged as collateral as they do not meet the derecognition criteria. This collateral continues to be shown on the Company’s balance sheets in its original line item. The Company had $64.8 million and $0 of such collateral posted as of September 30, 2023 and December 31, 2022, respectively. The balance as of September 30, 2023 consisted of USDC. The Company may receive non-cash collateral from borrowers where the Company does not have a right to use the collateral and does not recognize it on its balance sheets since the collateral does not meet the recognition criteria. The Company had $253.5 million and $4.8 million of such collateral received as of September 30, 2023 and December 31, 2022, respectively. Collateral posted: USDC Collateral received: Not recognized on balance sheet |
Schedule of collateral posted and received | As of September 30, 2023 and December 31, 2022, the Company’s assets pledged as collateral and obligation to return collateral consisted of the following (in thousands, except units): September 30, 2023 December 31, 2022 Units Fair Value Units Fair Value Assets pledged as collateral USDC (1) 46,145,736 $ 46,146 47,633,897 $ 47,634 Bitcoin (2) — — 650 10,743 Fiat N/A 3,935 N/A 41,630 Total $ 50,081 $ 100,007 Obligation to return collateral USDC 32,075,359 $ 32,075 26,873,830 $ 26,874 Fiat N/A 740 N/A — Total $ 32,815 $ 26,874 _________________ (1) As of September 30, 2023 and December 31, 2022, the Company had pledged USDC that served exclusively as collateral for certain crypto asset borrowings with a fair value of at least 100% of the loan amount outstanding. (2) As of December 31, 2022, the Company had pledged Bitcoin that served exclusively as collateral for fiat loans with a fair value of at least 110% of the loan amount outstanding. |
INDEBTEDNESS (Tables)
INDEBTEDNESS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of long-term debt instruments | The components of indebtedness were as follows as of September 30, 2023 (in thousands, except percentages): Indebtedness Effective Interest Rate Principal Amount Unamortized Debt Discount and Issuance Costs Net Carrying Amount 0.50% 2026 Convertible Notes due on June 1, 2026 0.98 % $ 1,373,013 $ (18,134) $ 1,354,879 3.38% 2028 Senior Notes due on October 1, 2028 3.57 % 1,000,000 (8,623) 991,377 3.63% 2031 Senior Notes due on October 1, 2031 3.77 % 737,457 (7,114) 730,343 Total $ 3,110,470 $ (33,871) $ 3,076,599 The components of indebtedness were as follows as of December 31, 2022 (in thousands, except percentages): Indebtedness Effective Interest Rate Principal Amount Unamortized Debt Discount and Issuance Costs Net Carrying Amount 0.50% 2026 Convertible Notes due on June 1, 2026 0.98 % $ 1,437,500 $ (23,339) $ 1,414,161 3.38% 2028 Senior Notes due on October 1, 2028 3.57 % 1,000,000 (10,022) 989,978 3.63% 2031 Senior Notes due on October 1, 2031 3.77 % 1,000,000 (10,691) 989,309 Total $ 3,437,500 $ (44,052) $ 3,393,448 |
Interest expense disclosure | The following table summarizes the interest expense for the 2026 Convertible Notes, the 2028 Senior Notes, and the 2031 Senior Notes (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Coupon interest $ 18,510 $ 19,296 $ 57,095 $ 57,937 Amortization of debt discount and issuance costs 2,262 2,204 6,665 6,442 Total $ 20,772 $ 21,500 $ 63,760 $ 64,379 |
DERIVATIVES (Tables)
DERIVATIVES (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Description of derivatives and related hedge accounting designation | The following outlines the Company’s derivatives: Type of Derivative Description of Derivative Location of Host Contract and Derivative on Balance Sheets Crypto asset borrowings The Company borrowed crypto assets that resulted in the obligation to deliver a fixed amount of crypto assets in the future. Crypto asset borrowings Accounts and loans receivable denominated in crypto assets Accounts receivable denominated in crypto assets: The Company provided services for which, under the contract, the customer pays in crypto assets. The amount of crypto assets are fixed at the time of invoicing. Crypto asset loans receivable: The Company lends crypto assets to institutions. The amount of crypto assets are fixed at the time of loan origination. In both of the above cases, the right to receive fixed amounts of crypto assets consists of a receivable host contract and an embedded forward contract to purchase crypto assets. Accounts and loans receivable, net of allowance Other payables denominated in crypto assets The Company entered into arrangements that result in the obligation to deliver a fixed amount of crypto assets in the future. Accrued expenses and other current liabilities Crypto asset futures The Company entered into short positions on futures contracts to minimize the exposure on the change in the fair value price of crypto assets held. Accounts and loans receivable, net of allowance Crypto assets pledged as collateral The Company enters into certain borrowing arrangements that require the Company to post collateral in the form of crypto assets. If the lender has the right to use the crypto asset collateral, the Company presents the collateral pledged as a right to receive a fixed amount of crypto assets. Prepaid expenses and other current assets Foreign currency forward contracts The Company entered into foreign currency forward contracts, with maturities of 12 months or less, to offset the foreign currency exchange risk of its assets and liabilities denominated in foreign currencies. These contracts are not designated as hedging instruments and reduce, but do not entirely eliminate, the impact of foreign currency exchange rate movements on the Company’s assets and liabilities. Prepaid expenses and other current assets/ Accrued expenses and other current liabilities |
Schedule of the notional amount of derivative contracts outstanding | The following table summarizes the notional amounts of derivative instruments outstanding, measured in U.S. dollar equivalents (in thousands): September 30, December 31, 2023 2022 Designated as hedging instrument (1) Crypto asset borrowings with embedded derivatives $ 51,149 $ 80,999 Crypto asset futures (2) 7,889 136,230 Not designated as hedging instrument Crypto asset borrowings with embedded derivatives 62,371 70,462 Accounts and loans receivable denominated in crypto assets 59,714 101,598 Other payables denominated in crypto assets 13,111 4,267 Crypto asset futures (2) 13,012 12,462 Crypto assets pledged as collateral — 13,103 Other 19,396 — __________________ (1) For risk management purposes, the Company applies hedge accounting using these derivative instruments in qualifying fair value hedges to primarily hedge the fair value exposure of crypto asset prices. (2) Derivative transactions are measured in terms of the notional amount; however, this amount is not recorded on the condensed consolidated balance sheets and is not, when viewed in isolation, a meaningful measure of the risk profile of the derivative instruments. The notional amount is generally not exchanged, but is used only as the underlying basis on which the value of exchange payments or settlement under these contracts are determined. The following tables summarize information on derivative assets and liabilities that are reflected on the Company’s condensed consolidated balance sheets, by accounting designation (in thousands): Gross Derivative Assets Gross Derivative Liabilities September 30, 2023 Not Designated as Hedges Designated as Hedges Total Derivative Assets Not Designated as Hedges Designated as Hedges Total Derivative Liabilities Crypto asset borrowings with embedded derivatives (1) $ 2,752 $ 2,805 $ 5,557 $ 523 $ 769 $ 1,292 Accounts and loans receivable denominated in crypto assets 9,542 — 9,542 1,705 — 1,705 Other payables denominated in crypto assets 4,495 — 4,495 2,965 — 2,965 Other 403 — 403 63 — 63 Total fair value of derivative assets and liabilities $ 17,192 $ 2,805 $ 19,997 $ 5,256 $ 769 $ 6,025 Gross Derivative Assets Gross Derivative Liabilities December 31, 2022 Not Designated as Hedges Designated as Hedges Total Derivative Assets Not Designated as Hedges Designated as Hedges Total Derivative Liabilities Crypto asset borrowings with embedded derivatives (1) $ 2,266 $ — $ 2,266 $ 657 $ 1,653 $ 2,310 Accounts and loans receivable denominated in crypto assets 302 — 302 9,146 — 9,146 Other payables denominated in crypto assets 1,270 — 1,270 5,767 — 5,767 Crypto assets pledged as collateral — — — 2,360 — 2,360 Total fair value of derivative assets and liabilities $ 3,838 $ — $ 3,838 $ 17,930 $ 1,653 $ 19,583 __________________ (1) During the nine months ended September 30, 2023, the fees on these borrowings ranged from 1.5% to 9.3%. During the nine months ended September 30, 2022, the fees on these borrowings ranged from 0.0% to 7.5%. During the three and nine months ended September 30, 2023, the Company incurred $0.7 million and $3.4 million of borrowing fees in crypto assets, respectively. During the three and nine months ended September 30, 2022, the Company incurred $0.9 million and $3.9 million of borrowing fees in crypto assets, respectively. Borrowing fees are included in other operating expense (income), net in the condensed consolidated statements of operations. The following amounts were recorded on the condensed consolidated balance sheets related to certain cumulative fair value hedge basis adjustments that are expected to reverse through the condensed consolidated statements of operations in future periods as an adjustment to other operating (income) expense, net (in thousands): Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Items Carrying Amount of the Hedged Items Active Hedging Relationships Discontinued Hedging Relationships Total September 30, 2023 Crypto assets held $ 56,564 $ (52,047) $ (1,796) $ (53,843) December 31, 2022 Crypto assets held $ 201,565 $ (562) $ 670 $ 108 |
Schedule of gains (losses) recorded in income | Gains (losses) on derivative instruments recognized in the Company’s condensed consolidated statements of operations were as follows (in thousands): Three Months Ended September 30, 2023 Three Months Ended September 30, 2022 Derivatives Hedged Items Income Statement Impact Derivatives Hedged Items Income Statement Impact Designated as fair value hedging instruments Crypto asset borrowings with embedded derivatives (1) $ 12,707 $ (4,247) $ 8,460 $ (211,110) $ 207,112 $ (3,998) Crypto asset futures (1) 1,329 (1,331) (2) 225 (77) 148 Not designated as hedging instruments Crypto asset borrowings with embedded derivatives (1) (30) — (30) — — — Accounts and loans receivable denominated in crypto assets (1) (8,466) — (8,466) (4,213) — (4,213) Other payables denominated in crypto assets (1) 6,337 — 6,337 (2,367) — (2,367) Crypto asset futures (1) 558 — 558 (566) — (566) Foreign currency forward contracts (2) — — — 22,935 — 22,935 Crypto assets pledged as collateral (1) 196 — 196 — — — Other (1) 5,259 — 5,259 — — — Total $ 17,890 $ (5,578) $ 12,312 $ (195,096) $ 207,035 $ 11,939 Nine Months Ended September 30, 2023 Nine Months Ended September 30, 2022 Derivatives Hedged Items Income Statement Impact Derivatives Hedged Items Income Statement Impact Designated as fair value hedging instruments Crypto asset borrowings with embedded derivatives (1) $ (75,848) $ 44,686 $ (31,162) $ 148,959 $ (154,228) $ (5,269) Crypto asset futures (1) (41,782) 47,160 5,378 13,237 (12,339) 898 Not designated as hedging instruments Crypto asset borrowings with embedded derivatives (1) 166 — 166 6,626 — 6,626 Accounts and loans receivable denominated in crypto assets (1) 38,614 — 38,614 (14,476) — (14,476) Other payables denominated in crypto assets (1) 7,181 — 7,181 143 — 143 Crypto asset futures (1) 960 — 960 (1,077) — (1,077) Foreign currency forward contracts (2) — — — 22,935 — 22,935 Other (1) 4,656 — 4,656 — — — Total $ (66,053) $ 91,846 $ 25,793 $ 176,347 $ (166,567) $ 9,780 __________________ (1) Changes in fair value are recognized in other operating expense (income), net in the condensed consolidated statements of operations. (2) Changes in fair value are recognized in other (income) expense, net, which partially offset gains and losses due to the remeasurement of certain foreign currency denominated assets and liabilities which are also recognized in other (income) expense, net in the condensed consolidated statements of operations. |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value of assets and liabilities | 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 (in thousands): September 30, 2023 Level 1 Level 2 Level 3 Total Assets Cash equivalents (1) $ 3,680,337 $ — $ — $ 3,680,337 Customer custodial funds (2) 2,541,561 — — 2,541,561 Crypto assets held (3) 56,564 — — 56,564 Derivative assets (4) — 10,455 — 10,455 Crypto asset loans receivable (5) — 57,517 — 57,517 Safeguarding customer crypto assets — 114,291,909 — 114,291,909 Total assets $ 6,278,462 $ 114,359,881 $ — $ 120,638,343 Liabilities Derivative liabilities (4) $ — $ 4,833 $ — $ 4,833 Safeguarding customer crypto liabilities — 114,291,909 — 114,291,909 Total liabilities $ — $ 114,296,742 $ — $ 114,296,742 December 31, 2022 Level 1 Level 2 Level 3 Total Assets Cash equivalents (1) $ 2,250,065 $ — $ — $ 2,250,065 Customer custodial funds (2) 2,088,132 — — 2,088,132 Crypto assets held (3) 201,565 — — 201,565 Derivative assets (4) — 3,838 — 3,838 Crypto asset loans receivable (5) — 85,826 — 85,826 Safeguarding customer crypto assets — 75,413,188 — 75,413,188 Total assets $ 4,539,762 $ 75,502,852 $ — $ 80,042,614 Liabilities Derivative liabilities (4) $ — $ 19,583 $ — $ 19,583 Contingent consideration arrangement — — 1,855 1,855 Safeguarding customer crypto liabilities — 75,413,188 — 75,413,188 Total liabilities $ — $ 75,432,771 $ 1,855 $ 75,434,626 __________________ (1) Represents money market funds. Excludes $1.3 billion of corporate cash held in deposit at banks and $163.5 million held at venues, which were not measured and recorded at fair value as of September 30, 2023. Excludes $2.0 billion of corporate cash held in deposit at banks and $143.2 million held at venues, which were not measured and recorded at fair value as of December 31, 2022. (2) Represents money market funds. Excludes customer custodial funds of $0.9 billion and $3.0 billion held in deposit at financial institutions and not measured and recorded at fair value as of September 30, 2023 and December 31, 2022, respectively. (3) Includes crypto assets held that have been designated as hedged items in fair value hedges and excludes crypto assets of $399.4 million and $222.8 million held at cost as of September 30, 2023 and December 31, 2022, respectively. (4) See Note 13. Derivatives for additional details. (5) Includes the embedded derivative asset of $9.5 million and $0.3 million and embedded derivative liability of $1.2 million and $6.0 million related to the Company's crypto asset loans receivable as of September 30, 2023 and December 31, 2022, respectively. See Note 13. Derivatives for additional details. |
COMMON STOCK (Tables)
COMMON STOCK (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Schedule of common stock reserved for issuance | The Company has reserved shares of Class A common stock and Class B common stock for issuance for the following purposes (in thousands): September 30, December 31, 2023 2022 Class A common stock Options issued and outstanding under the 2013 Amended and Restated Stock Plan (the “2013 Plan”) 902 982 Options issued and outstanding under the 2019 Equity Incentive Plan (the “2019 Plan”) 23,560 25,314 RSUs issued and outstanding under the 2019 Plan 1,100 2,418 Options issued and outstanding under the 2021 Equity Incentive Plan (the “2021 Plan”) 1,599 862 RSUs issued and outstanding under the 2021 Plan 4,413 2,911 Performance Restricted Stock Units (the "PRSUs") issued and outstanding under the 2021 Plan 804 — Shares available for future issuance under the 2021 Plan 48,341 42,819 Shares available for future issuance under the ESPP 9,083 6,701 RSUs and replacement options issued and outstanding from acquisitions 140 135 Shares available for future issuance of warrants 2,296 2,296 Total Class A common stock shares reserved 92,238 84,438 Class B common stock Options issued and outstanding under the 2013 Plan 3,823 4,502 Total Class B common stock shares reserved 3,823 4,502 |
STOCK-BASED COMPENSATION (Table
STOCK-BASED COMPENSATION (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of activity of options outstanding | Activity of options outstanding are as follows (in thousands, except per share and years data): Options Outstanding Weighted Average Exercise Price per Share Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value Balance at January 1, 2023 31,795 $ 23.31 6.95 $ 504,222 Granted 843 73.07 Exercised (1,883) 14.61 Forfeited and cancelled (814) 41.14 Balance at September 30, 2023 29,941 $ 24.77 6.32 $ 1,583,971 Exercisable at September 30, 2023 23,800 $ 25.12 6.18 $ 1,266,795 Vested and expected to vest at September 30, 2023 23,858 $ 25.10 6.18 $ 1,270,146 |
Schedule of share-based payment award, options, valuation assumptions | The assumptions used under the Black-Scholes-Merton Option-Pricing Model to calculate the fair value of the options granted to employees were as follows: Nine Months Ended September 30, 2023 2022 Dividend yield 0.0 % 0.0 % Expected volatility 90.5 % 59.3 % Expected term (in years) 5.8 5.8 Risk-free interest rate 3.9 % 2.1 % |
Schedule of activity of RSUs outstanding | Activity of RSUs outstanding are as follows (in thousands, except per share data): Number of Shares Weighted-Average Grant Date Fair Value Per Share Balance at January 1, 2023 5,329 $ 127.85 Granted 9,316 57.59 Vested (7,763) 71.61 Forfeited and cancelled (1,286) 120.61 Balance at September 30, 2023 5,596 $ 90.58 |
Schedule of activity of PRSUs outstanding | Activity of PRSUs outstanding are as follows (in thousands, except per share data): Number of Shares Weighted-Average Grant Date Fair Value Per Share Balance at January 1, 2023 — $ — Granted 804 55.42 Balance at September 30, 2023 804 $ 55.42 |
Schedule of activity of restricted Class A common stock | Activity of restricted Class A common stock is as follows (in thousands, except per share data): Number of Shares Weighted-Average Grant Date Fair Value Per Share Balance at January 1, 2023 1,275 $ 139.72 Granted 263 64.51 Vested (954) 130.45 Forfeited and cancelled (29) 171.85 Balance at September 30, 2023 555 $ 118.33 |
Schedule of stock based compensation | Stock-based compensation is included in the following components of expenses on the accompanying condensed consolidated statements of operations (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Technology and development $ 130,776 $ 275,817 $ 376,941 $ 793,573 Sales and marketing 16,556 18,461 45,695 52,813 General and administrative 70,821 97,163 194,149 288,692 Restructuring — — 84,042 — Total $ 218,153 $ 391,441 $ 700,827 $ 1,135,078 |
OTHER (INCOME) EXPENSE, NET (Ta
OTHER (INCOME) EXPENSE, NET (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Other Income and Expenses [Abstract] | |
Schedule of other nonoperating income (expense) | Other (income) expense, net comprises the following (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Losses on foreign exchange $ 382 $ 64,509 $ 10,916 $ 198,891 (Gains) losses on strategic investments (48,488) (3,408) (38,330) 70,153 Gain on extinguishment of long-term debt (81,591) — (99,446) — Other (5,610) 4,598 (4,746) 2,023 Total other (income) expense, net $ (135,307) $ 65,699 $ (131,606) $ 271,067 |
NET LOSS PER SHARE (Tables)
NET LOSS PER SHARE (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of computation of net (loss) income per share | The computation of net loss p er share is as follows (in thousands, except per share amounts): Three Months Ended Nine Months Ended 2023 2022 2023 2022 Basic net loss per share: Numerator Net loss $ (2,265) $ (544,635) $ (178,566) $ (2,067,948) Net loss attributable to common stockholders, basic $ (2,265) $ (544,635) $ (178,566) $ (2,067,948) Denominator Weighted-average shares of common stock used to compute net loss per share attributable to common stockholders, basic 237,270 223,916 234,479 220,816 Net loss per share attributable to common stockholders, basic $ (0.01) $ (2.43) $ (0.76) $ (9.37) Diluted net loss per share: Numerator Net loss $ (2,265) $ (544,635) $ (178,566) $ (2,067,948) Less: Fair value gain on contingent consideration arrangement, net of tax — — — (5,395) Net loss attributable to common stockholders, diluted $ (2,265) $ (544,635) $ (178,566) $ (2,073,343) Denominator Weighted-average shares of common stock used to compute net loss per share attributable to common stockholders, basic 237,270 223,916 234,479 220,816 Weighted-average effect of potentially dilutive securities: Contingent consideration — — — 40 Weighted-average shares of common stock used to compute net loss per share attributable to common stockholders, diluted 237,270 223,916 234,479 220,856 Net income loss per share attributable to common stockholders, diluted $ (0.01) $ (2.43) $ (0.76) $ (9.39) |
Schedule of potentially dilutive shares | The following potentially dilutive shares were not included in the calculation of diluted shares outstanding as the effect would have been anti-dilutive (in thousands): Three Months Ended September 30, Nine Months Ended September 30, 2023 2022 2023 2022 Stock options 29,941 33,411 29,941 33,411 RSUs 5,596 6,854 5,596 6,854 Convertible notes 3,706 3,880 3,706 3,880 ESPP 925 1,030 925 1,030 Restricted common stock 797 1,740 797 1,740 PRSUs 804 — 804 — Contingent consideration — 76 — — Total 41,769 46,991 41,769 46,915 |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Concentration Risk [Line Items] | |||
USDC held | $ 400,799 | $ 400,799 | $ 861,149 |
Safeguarding customer crypto assets | 114,291,909 | 114,291,909 | 75,413,188 |
Safeguarding customer crypto liabilities | $ 114,291,909 | $ 114,291,909 | $ 75,413,188 |
Accounts Receivable | Customer Concentration Risk | One Customer | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage (more than) | 10% | ||
Accounts Receivable | Customer Concentration Risk | Two Customers | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage (more than) | 10% | ||
Revenue Benchmark | Customer Concentration Risk | One Customer | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage (more than) | 10% | 10% |
RESTRUCTURING - Narrative (Deta
RESTRUCTURING - Narrative (Details) $ in Thousands | 1 Months Ended | ||
Jan. 31, 2023 employees | Jun. 30, 2022 Employee | Sep. 30, 2023 USD ($) | |
Restructuring Cost and Reserve [Line Items] | |||
Number of positions eliminated, period percent | 21% | 18% | |
Number of positions eliminated | Employee | 1,100 | ||
Expected restructuring cost remaining | $ | $ 0 | ||
Restructuring Plan | |||
Restructuring Cost and Reserve [Line Items] | |||
Number of positions eliminated | employees | 950 |
RESTRUCTURING - Schedule of Res
RESTRUCTURING - Schedule of Restructuring Expenses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring | $ (860) | $ (1,232) | $ 142,594 | $ 41,221 |
Adjustments | 1,895 | (1,232) | ||
Separation pay | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring | (860) | 0 | 56,733 | 39,259 |
Adjustments | (900) | 1,012 | 0 | |
Stock-based compensation | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring | 0 | 84,042 | ||
Other personnel costs | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring | $ 0 | $ (1,232) | 1,819 | 1,962 |
Adjustments | $ 883 | $ (1,232) |
RESTRUCTURING - Schedule of R_2
RESTRUCTURING - Schedule of Restructuring Reserve and Changes in Balance (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | |
Restructuring Reserve [Roll Forward] | |||
Expenses Incurred | $ 60,447 | $ 42,453 | |
Payments | (58,552) | (39,420) | |
Adjustments | (1,895) | 1,232 | |
Accrued Balance as of September 30, 2023 | $ 0 | 0 | 1,801 |
Separation pay | |||
Restructuring Reserve [Roll Forward] | |||
Expenses Incurred | 57,745 | 39,259 | |
Payments | (56,733) | (37,940) | |
Adjustments | 900 | (1,012) | 0 |
Accrued Balance as of September 30, 2023 | 0 | 0 | 1,319 |
Other personnel costs | |||
Restructuring Reserve [Roll Forward] | |||
Expenses Incurred | 2,702 | 3,194 | |
Payments | (1,819) | (1,480) | |
Adjustments | (883) | 1,232 | |
Accrued Balance as of September 30, 2023 | $ 0 | $ 0 | $ 482 |
ACQUISITIONS - Narrative (Detai
ACQUISITIONS - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Mar. 03, 2023 | Feb. 01, 2022 | Jan. 04, 2022 | Sep. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Business Acquisition [Line Items] | ||||||
Measurement period adjustments | $ 0 | $ 0 | $ 6,269 | |||
One River Digital Asset Management, LLC | ||||||
Business Acquisition [Line Items] | ||||||
Cash subject to an indemnity holdback | $ 6,000 | |||||
Number of shares to subject to indemnity holdback (in shares) | 119,991 | |||||
Holdback release term | 18 months | |||||
Total acquisition costs | $ 2,600 | |||||
Unbound Security, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Business combination, provisional information, initial accounting incomplete, adjustment, other noncurrent assets | 4,100 | |||||
Measurement period adjustments | 4,100 | |||||
Cash subject to an indemnity holdback | $ 21,700 | |||||
Holdback release term | 18 months | |||||
Total acquisition costs | $ 3,000 | |||||
Unbound Security, Inc. | Class A common stock | ||||||
Business Acquisition [Line Items] | ||||||
Number of shares to subject to indemnity holdback (in shares) | 85,324 | |||||
FairXchange, Inc. | ||||||
Business Acquisition [Line Items] | ||||||
Business combination, provisional information, initial accounting incomplete, adjustment, other noncurrent assets | 300 | |||||
Measurement period adjustments | $ 300 | |||||
Cash subject to an indemnity holdback | $ 4,700 | |||||
FairXchange, Inc. | Class A common stock | ||||||
Business Acquisition [Line Items] | ||||||
Number of shares to subject to indemnity holdback (in shares) | 83,035 | |||||
FairXchange, Inc. | Common Stock, Not Subject to Indemnity Holdback | Class A common stock | ||||||
Business Acquisition [Line Items] | ||||||
Number of shares included in purchase consideration (in shares) | 170,397 | |||||
FairXchange, Inc. | General and administrative | ||||||
Business Acquisition [Line Items] | ||||||
Total acquisition costs | $ 1,100 |
ACQUISITIONS - Schedule of ORDA
ACQUISITIONS - Schedule of ORDAM purchase consideration (Details) - One River Digital Asset Management, LLC $ in Thousands | Mar. 03, 2023 USD ($) |
Business Acquisition [Line Items] | |
Cash | $ 30,830 |
Cash payable | 1,005 |
Previously-held interest on acquisition date | 20,000 |
Class A common stock of the Company | 44,995 |
Consideration transferred | $ 96,830 |
ACQUISITIONS - Schedule of OR_2
ACQUISITIONS - Schedule of ORDAM net assets acquired (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Mar. 03, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 1,139,670 | $ 1,073,906 | $ 625,758 | |
One River Digital Asset Management, LLC | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 100 | |||
Accounts and loans receivable, net of allowance | 425 | |||
Prepaid expenses and other current assets | 134 | |||
Goodwill | 65,764 | |||
Intangible assets, net | 21,100 | |||
Other non-current assets | 9,911 | |||
Total assets | 97,434 | |||
Accounts payable | 604 | |||
Total liabilities | 604 | |||
Net assets acquired | $ 96,830 |
ACQUISITIONS - Schedule of OR_3
ACQUISITIONS - Schedule of ORDAM finite-lived intangible assets acquired (Details) - One River Digital Asset Management, LLC $ in Thousands | Mar. 03, 2023 USD ($) |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, net | $ 21,100 |
Licenses | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, net | 1,100 |
IPR&D | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, net | 2,900 |
Customer relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, net | $ 17,100 |
Useful Life at Acquisition (in Years) | 6 years |
ACQUISITIONS - Schedule of Unbo
ACQUISITIONS - Schedule of Unbound purchase consideration (Details) - Unbound Security, Inc. $ in Thousands | Jan. 04, 2022 USD ($) |
Business Acquisition [Line Items] | |
Cash | $ 151,424 |
Cash payable | 126 |
Total purchase consideration | 257,984 |
Class A common stock | |
Business Acquisition [Line Items] | |
Class A common stock of the Company | 103,977 |
RSUs | |
Business Acquisition [Line Items] | |
Class A common stock of the Company | $ 2,457 |
ACQUISITIONS - Schedule of Un_2
ACQUISITIONS - Schedule of Unbound net assets acquired (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Jan. 04, 2022 | Dec. 31, 2021 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 1,139,670 | $ 1,073,906 | $ 625,758 | |
Unbound Security, Inc. | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 10,560 | |||
Restricted cash | 573 | |||
Accounts and loans receivable, net of allowance | 4,981 | |||
Prepaid expenses and other current assets | 4,182 | |||
Lease right-of-use assets | 1,059 | |||
Property and equipment, net | 1,248 | |||
Goodwill | 222,732 | |||
Intangible assets, net | 28,500 | |||
Other non-current assets | 3,476 | |||
Total assets | 277,311 | |||
Accounts payable | 719 | |||
Accrued expenses and other current liabilities | 11,325 | |||
Lease liabilities | 1,059 | |||
Other non-current liabilities | 6,224 | |||
Total liabilities | 19,327 | |||
Net assets acquired | $ 257,984 |
ACQUISITIONS - Schedule of Un_3
ACQUISITIONS - Schedule of Unbound finite-lived intangible assets acquired (Details) - Unbound Security, Inc. $ in Thousands | Jan. 04, 2022 USD ($) |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, net | $ 28,500 |
Developed technology | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, net | $ 15,700 |
Developed technology | Minimum | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Useful Life at Acquisition (in Years) | 1 year |
Developed technology | Maximum | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Useful Life at Acquisition (in Years) | 5 years |
IPR&D | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, net | $ 2,500 |
Customer relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, net | $ 10,300 |
Useful Life at Acquisition (in Years) | 2 years |
ACQUISITIONS - Schedule of Fair
ACQUISITIONS - Schedule of FairXchange purchase consideration (Details) - FairXchange, Inc. $ in Thousands | Feb. 01, 2022 USD ($) |
Business Acquisition [Line Items] | |
Cash | $ 56,726 |
Cash payable | 10,442 |
Aggregate total preliminary consideration transferred | 275,090 |
Common Stock Issued | Class A common stock | |
Business Acquisition [Line Items] | |
Class A common stock of the Company | 174,229 |
Common Stock to be Issued | Class A common stock | |
Business Acquisition [Line Items] | |
Class A common stock of the Company | $ 33,693 |
ACQUISITIONS - Schedule of Fa_2
ACQUISITIONS - Schedule of FairXchange net assets acquired (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Feb. 01, 2022 | Dec. 31, 2021 |
Business Acquisition [Line Items] | ||||
Goodwill | $ 1,139,670 | $ 1,073,906 | $ 625,758 | |
FairXchange, Inc. | ||||
Business Acquisition [Line Items] | ||||
Cash and cash equivalents | $ 10,867 | |||
Accounts and loans receivable, net of allowance | 411 | |||
Prepaid expenses and other current assets | 20 | |||
Intangible assets, net | 41,000 | |||
Goodwill | 231,685 | |||
Other non-current assets | 8,295 | |||
Total assets | 292,278 | |||
Accounts payable | 472 | |||
Accrued expenses and other current liabilities | 5,796 | |||
Other non-current liabilities | 10,920 | |||
Total liabilities | 17,188 | |||
Net assets acquired | $ 275,090 |
ACQUISITIONS - Schedule of Fa_3
ACQUISITIONS - Schedule of FairXchange finite-lived intangible assets acquired (Details) - FairXchange, Inc. $ in Thousands | Feb. 01, 2022 USD ($) |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, net | $ 41,000 |
DCM License | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, net | 26,900 |
Developed technology | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, net | $ 10,700 |
Useful Life at Acquisition (in Years) | 5 years |
Trading relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Intangible assets, net | $ 3,400 |
Useful Life at Acquisition (in Years) | 3 years |
REVENUE - Schedule of revenue d
REVENUE - Schedule of revenue disaggregated by source (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Interest income | $ 39,467 | $ 24,920 | $ 131,360 | $ 44,769 |
Total revenue | 674,148 | 590,339 | 2,154,588 | 2,565,100 |
Net revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 623,004 | 576,375 | 2,021,902 | 2,543,869 |
Transaction revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 288,575 | 365,868 | 990,386 | 2,034,118 |
Consumer, net | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 274,505 | 346,091 | 936,944 | 1,928,145 |
Institutional, net | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 14,070 | 19,777 | 53,442 | 105,973 |
Subscription and services revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 334,429 | 210,507 | 1,031,516 | 509,751 |
Stablecoin revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 172,357 | 76,858 | 522,650 | 99,977 |
Blockchain rewards | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 74,461 | 62,759 | 235,824 | 213,064 |
Custodial fee revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 15,805 | 14,532 | 49,839 | 68,404 |
Other subscription and services revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 32,339 | 31,438 | 91,843 | 83,537 |
Other Revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 51,144 | 13,964 | 132,686 | 21,231 |
Corporate interest and other income | ||||
Disaggregation of Revenue [Line Items] | ||||
Corporate interest and other income | $ 51,144 | $ 13,964 | $ 132,686 | $ 21,231 |
REVENUE - Narrative (Details)
REVENUE - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Disaggregation of Revenue [Line Items] | |||||
Revenue | $ 674,148 | $ 590,339 | $ 2,154,588 | $ 2,565,100 | |
Custodial fee revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Amounts receivable from customers, net of allowance | 10,000 | 10,000 | $ 7,800 | ||
Other subscription and services revenue | |||||
Disaggregation of Revenue [Line Items] | |||||
Amounts receivable from customers, net of allowance | 14,600 | 14,600 | 13,100 | ||
Related Party | |||||
Disaggregation of Revenue [Line Items] | |||||
Amounts receivable from customers, net of allowance | 3,400 | 3,400 | $ 1,300 | ||
Revenue | $ 3,400 | $ 1,900 | $ 11,600 | $ 9,500 |
REVENUE - Schedule of revenue_2
REVENUE - Schedule of revenue disaggregated by geographic area (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 674,148 | $ 590,339 | $ 2,154,588 | $ 2,565,100 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 603,648 | 501,963 | 1,928,278 | 2,125,010 |
Rest of the World | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 70,500 | $ 88,376 | $ 226,310 | $ 440,090 |
ACCOUNTS AND LOANS RECEIVABLE_3
ACCOUNTS AND LOANS RECEIVABLE, NET OF ALLOWANCE - Schedule of accounts and loans receivable (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Stablecoin revenue receivable | $ 57,820 | $ 179,996 |
Customer fee revenue receivable | 34,846 | 23,014 |
Loans receivable | 215,928 | 98,203 |
Crypto asset loans receivable | 57,517 | 85,826 |
Interest and other receivables | 53,211 | 28,837 |
Allowance for doubtful accounts | (21,856) | (11,500) |
Accounts and loans receivable, net of allowance | 397,466 | 404,376 |
USDC receivables | 88,100 | 2,800 |
Accounts receivable denominated in crypto assets | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Interest and other receivables | 10,000 | 6,900 |
Unlikely to be Collected Financing Receivable | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Allowance for doubtful accounts | $ (2,200) | $ (3,200) |
ACCOUNTS AND LOANS RECEIVABLE_4
ACCOUNTS AND LOANS RECEIVABLE, NET OF ALLOWANCE - Narrative (Details) - USD ($) | Sep. 30, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | $ 215,928,000 | $ 98,203,000 |
Financing receivable, allowance for credit loss, excluding accrued interest, current | 0 | |
Allowance for credit loss against crypto asset loan receivables | 0 | |
Consumer, net | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding balance | 78,300,000 | 98,200,000 |
Interest receivable | 500,000 | 700,000 |
Institutional, net | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Outstanding balance | 125,800,000 | 0 |
Interest receivable | 900,000 | |
Financial Asset, Past Due | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | 0 | 0 |
Crypto asset loan receivables past due | $ 0 | $ 0 |
Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Assets pledged as collateral, percentage of fair value | 128% | |
Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Assets pledged as collateral, percentage of fair value | 250% |
GOODWILL, INTANGIBLE ASSETS, _3
GOODWILL, INTANGIBLE ASSETS, NET AND CRYPTO ASSETS HELD - Schedule of goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | |
Goodwill [Roll Forward] | |||
Balance, beginning of period | $ 1,073,906 | $ 625,758 | |
Additions due to business combinations | 65,764 | 454,417 | |
Measurement period adjustments | $ 0 | 0 | (6,269) |
Balance, end of period | $ 1,139,670 | $ 1,139,670 | 1,073,906 |
Unbound Security, Inc. | |||
Goodwill [Roll Forward] | |||
Measurement period adjustments | (4,100) | ||
FairXchange, Inc. | |||
Goodwill [Roll Forward] | |||
Measurement period adjustments | (300) | ||
Other Acquisitions | |||
Goodwill [Roll Forward] | |||
Measurement period adjustments | $ (1,900) |
GOODWILL, INTANGIBLE ASSETS, _4
GOODWILL, INTANGIBLE ASSETS, NET AND CRYPTO ASSETS HELD - Narrative (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Accumulated impairment | $ 0 | $ 0 | $ 0 | ||
Amortization expense of intangible assets | 13,200,000 | $ 27,700,000 | 61,100,000 | $ 80,000,000 | |
Impairment of intangible assets (excluding goodwill and crypto assets held) | 0 | 100,000 | 500,000 | 4,500,000 | |
Crypto asset impairment expense | 22,868,000 | 25,918,000 | 77,151,000 | 689,077,000 | |
Crypto asset sales and disposals | $ 15,688,000 | $ 13,768,000 | $ 60,062,000 | $ 34,115,000 |
GOODWILL, INTANGIBLE ASSETS, _5
GOODWILL, INTANGIBLE ASSETS, NET AND CRYPTO ASSETS HELD - Schedule of intangible assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets [Line Items] | ||
Accumulated Amortization | $ (170,196) | $ (176,580) |
Total expected future amortization expense | 62,385 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Total intangible assets, gross carrying amount | 265,131 | 312,009 |
Total accumulated amortization | (170,196) | (176,580) |
Intangible assets, net | 94,935 | 135,429 |
Domain name | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 250 | 250 |
Licenses | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 28,000 | 26,900 |
Acquired developed technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross carrying amount | 119,991 | 126,692 |
Accumulated Amortization | (102,348) | (81,172) |
Total expected future amortization expense | $ 17,643 | $ 45,520 |
Weighted Average Remaining Useful Life (in Years) | 3 years 1 month 6 days | 2 years 3 months 18 days |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Total accumulated amortization | $ (102,348) | $ (81,172) |
User base | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross carrying amount | 2,997 | 2,997 |
Accumulated Amortization | (2,943) | (2,154) |
Total expected future amortization expense | $ 54 | $ 843 |
Weighted Average Remaining Useful Life (in Years) | 1 month 6 days | 9 months 18 days |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Total accumulated amortization | $ (2,943) | $ (2,154) |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross carrying amount | 103,791 | 86,691 |
Accumulated Amortization | (61,014) | (45,717) |
Total expected future amortization expense | $ 42,777 | $ 40,974 |
Weighted Average Remaining Useful Life (in Years) | 3 years 3 months 18 days | 2 years 7 months 6 days |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Total accumulated amortization | $ (61,014) | $ (45,717) |
Non-compete agreement | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross carrying amount | 2,402 | 2,402 |
Accumulated Amortization | (2,002) | (1,641) |
Total expected future amortization expense | $ 400 | $ 761 |
Weighted Average Remaining Useful Life (in Years) | 9 months 18 days | 1 year 7 months 6 days |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Total accumulated amortization | $ (2,002) | $ (1,641) |
Assembled workforce | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross carrying amount | 60,800 | |
Accumulated Amortization | (44,857) | |
Total expected future amortization expense | $ 15,943 | |
Weighted Average Remaining Useful Life (in Years) | 4 months 24 days | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Total accumulated amortization | $ (44,857) | |
Trade relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross carrying amount | 3,400 | 3,400 |
Accumulated Amortization | (1,889) | (1,039) |
Total expected future amortization expense | $ 1,511 | $ 2,361 |
Weighted Average Remaining Useful Life (in Years) | 1 year 3 months 18 days | 2 years 1 month 6 days |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | ||
Total accumulated amortization | $ (1,889) | $ (1,039) |
In process research and development | ||
Finite-Lived Intangible Assets [Line Items] | ||
Intangible assets, gross carrying amount | 4,300 | 1,877 |
Total expected future amortization expense | $ 4,300 | $ 1,877 |
In process research and development | Pro Forma | ||
Finite-Lived Intangible Assets [Line Items] | ||
Finite-lived intangible asset useful life | 3 years | 3 years |
GOODWILL, INTANGIBLE ASSETS, _6
GOODWILL, INTANGIBLE ASSETS, NET AND CRYPTO ASSETS HELD - Schedule of future amortization expense (Details) $ in Thousands | Sep. 30, 2023 USD ($) |
Goodwill and Intangible Assets Disclosure [Abstract] | |
2023 (for the remainder of) | $ 8,197 |
2024 | 24,216 |
2025 | 15,966 |
2026 | 7,665 |
2027 | 3,026 |
Thereafter | 3,315 |
Total expected future amortization expense | $ 62,385 |
GOODWILL, INTANGIBLE ASSETS, _7
GOODWILL, INTANGIBLE ASSETS, NET AND CRYPTO ASSETS HELD - Crypto assets held (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Recorded at impaired cost | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | $ 399,422 | $ 222,828 |
Recorded at fair value | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 56,564 | 201,565 |
Total crypto assets held | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 455,986 | 424,393 |
Crypto assets held as investments | Recorded at impaired cost | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 310,873 | 155,251 |
Crypto assets held as investments | Recorded at fair value | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 0 | 133,416 |
Crypto assets held for operations purposes | Recorded at impaired cost | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 82,003 | 67,577 |
Crypto assets held for operations purposes | Recorded at fair value | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 6,672 | 0 |
Crypto assets borrowed | Recorded at impaired cost | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | 6,546 | 0 |
Crypto assets borrowed | Recorded at fair value | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-lived intangible assets | $ 49,892 | $ 68,149 |
GOODWILL, INTANGIBLE ASSETS, _8
GOODWILL, INTANGIBLE ASSETS, NET AND CRYPTO ASSETS HELD - Schedule of Crypto Asset Impairment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Crypto asset impairment expense | $ 22,868 | $ 25,918 | $ 77,151 | $ 689,077 |
Crypto asset sales and disposals | (15,688) | (13,768) | (60,062) | (34,115) |
Crypto asset impairment, net | $ 7,180 | $ 12,150 | $ 17,089 | $ 654,962 |
CUSTOMER ASSETS AND LIABILITI_3
CUSTOMER ASSETS AND LIABILITIES - Schedule of Customers' Cash and Crypto Positions (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | ||
Customer custodial funds | $ 3,474,489 | $ 5,041,119 |
Safeguarding customer crypto assets | 114,291,909 | 75,413,188 |
Total customer assets | 117,766,398 | 80,454,307 |
Customer custodial cash liabilities | 3,474,489 | 4,829,587 |
Safeguarding customer crypto liabilities | 114,291,909 | 75,413,188 |
Total customer liabilities | $ 117,766,398 | $ 80,242,775 |
CUSTOMER ASSETS AND LIABILITI_4
CUSTOMER ASSETS AND LIABILITIES - Narrative (Details) | 9 Months Ended |
Sep. 30, 2023 | |
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] | |
Crypto assets to cash ratio | 1 |
CUSTOMER ASSETS AND LIABILITI_5
CUSTOMER ASSETS AND LIABILITIES - Fair Value of Customer Crypto Assets (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 | Dec. 31, 2022 | |
Cryptocurrency, by Type [Line Items] | ||
Safeguarding customer crypto assets | $ 114,291,909 | $ 75,413,188 |
Percentage of total | 100% | 100% |
Safeguarding And Customer Crypto Assets | ||
Cryptocurrency, by Type [Line Items] | ||
Safeguarding customer crypto assets | $ 0 | $ 0 |
Bitcoin | ||
Cryptocurrency, by Type [Line Items] | ||
Safeguarding customer crypto assets | $ 55,700,000 | $ 32,500,000 |
Percentage of total | 48.70% | 43.10% |
Ethereum | ||
Cryptocurrency, by Type [Line Items] | ||
Safeguarding customer crypto assets | $ 29,500,000 | $ 20,800,000 |
Percentage of total | 25.80% | 27.60% |
Other crypto assets | ||
Cryptocurrency, by Type [Line Items] | ||
Safeguarding customer crypto assets | $ 29,100,000 | $ 22,100,000 |
Percentage of total | 25.50% | 29.30% |
Ethereum | ||
Cryptocurrency, by Type [Line Items] | ||
Safeguarding customer crypto assets | $ 7,100,000 | $ 3,000,000 |
No Assets | Safeguarding And Customer Crypto Assets | Asset Concentration Risk | ||
Cryptocurrency, by Type [Line Items] | ||
Concentration risk, percentage (more than) | 5% | 5% |
PREPAID EXPENSES AND OTHER AS_3
PREPAID EXPENSES AND OTHER ASSETS - Schedule of prepaid expenses and other current and non-current assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Prepaid expenses and other current assets | ||
Prepaid expenses | $ 88,101 | $ 98,204 |
Fair Value | 50,081 | 100,007 |
Other | 19,532 | 18,837 |
Total prepaid expenses and other current assets | 157,714 | 217,048 |
Other non-current assets | ||
Strategic investments | 357,075 | 326,683 |
Deferred tax assets | 1,105,992 | 1,046,791 |
Deposits | 12,238 | 10,989 |
Other | 2,791 | 17,257 |
Total other non-current assets | 1,478,096 | 1,401,720 |
Asset Pledged as Collateral with Right | ||
Prepaid expenses and other current assets | ||
Fair Value | $ 46,100 | $ 58,400 |
PREPAID EXPENSES AND OTHER AS_4
PREPAID EXPENSES AND OTHER ASSETS - Schedule of other investments accounted for under the measurement alternative (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Equity Securities without Readily Determinable Fair Value [Roll Forward] | ||
Carrying amount, beginning of period | $ 315,285 | $ 352,431 |
Net additions | 54,271 | 57,058 |
Upward adjustments | 62 | 879 |
Previously held interest in ORDAM | (20,000) | 0 |
Impairments and downward adjustments | (5,774) | (70,631) |
Carrying amount, end of period | 343,844 | 339,737 |
Strategic investments that are not accounted for under the measurement alternative | $ 13,200 | $ 17,300 |
PREPAID EXPENSES AND OTHER AS_5
PREPAID EXPENSES AND OTHER ASSETS - Narrative (Details) - USD ($) $ in Millions | Aug. 18, 2023 | Sep. 30, 2023 | Dec. 31, 2022 | Aug. 31, 2019 |
Schedule of Equity Method Investments [Line Items] | ||||
Upward adjustments due to remeasurement of investments | $ 4.9 | $ 4.9 | ||
Impairment loss and downward adjustments | $ 107.8 | $ 102 | ||
Centre Consortium LLC | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Ownership percentage | 50% | 50% | ||
Share value received from sale of equity method investment | $ 51.1 | |||
Gain on disposal of equity method investment | $ 49.9 | |||
Circle Internet Financial Limitied | ||||
Schedule of Equity Method Investments [Line Items] | ||||
Percent of equity received in exchange for ownership interest | 3.50% |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Schedule of accounts payable and accrued expenses (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Payables and Accruals [Abstract] | ||
Accrued expenses | $ 84,369 | $ 75,532 |
Accrued payroll and payroll related | 182,774 | 90,257 |
Income taxes payable | 14,663 | 5,534 |
Short-term borrowings | 0 | 20,519 |
Obligation to return collateral | 32,815 | 26,874 |
Other payables | 59,753 | 112,520 |
Total accrued expenses and other current liabilities | 374,374 | 331,236 |
Other payables denominated in crypto assets | $ 11,600 | $ 8,800 |
ACCRUED EXPENSES AND OTHER CU_4
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Narrative (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Accrued Expenses [Line Items] | |||
Debt instrument, stated percentage | 4.49% | ||
Short-term borrowings | $ 0 | $ 20,519 | |
Repayments of short-term borrowings | $ 52,122 | $ 170,000 | |
Minimum | |||
Accrued Expenses [Line Items] | |||
Assets pledged as collateral, percentage of fair value | 128% | ||
Maximum | |||
Accrued Expenses [Line Items] | |||
Assets pledged as collateral, percentage of fair value | 250% |
COLLATERAL - Summary of Collate
COLLATERAL - Summary of Collateral Positions (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair Value | $ 127,305,595 | $ 89,724,873 |
Collateral received | 253,500 | 4,800 |
Asset Pledged as Collateral without Right | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair Value | $ 64,800 | $ 0 |
Minimum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Assets pledged as collateral, percentage of fair value | 128% | |
Maximum | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Assets pledged as collateral, percentage of fair value | 250% |
COLLATERAL - Schedule of Collat
COLLATERAL - Schedule of Collateral Posted and Received (Details) $ in Thousands | Sep. 30, 2023 USD ($) Unit | Dec. 31, 2022 USD ($) Unit |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair Value | $ 127,305,595 | $ 89,724,873 |
Obligation to return collateral | 32,815 | 26,874 |
Asset Pledged as Collateral | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair Value | $ 50,081 | $ 100,007 |
USDC | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Units | Unit | 46,145,736 | 47,633,897 |
Obligation to return collateral, units | Unit | 32,075,359 | 26,873,830 |
Obligation to return collateral | $ 32,075 | $ 26,874 |
Securities loaned percent | 100% | 100% |
USDC | Asset Pledged as Collateral | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair Value | $ 46,146 | $ 47,634 |
Bitcoin | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Units | Unit | 0 | 650 |
Securities loaned percent | 110% | |
Bitcoin | Asset Pledged as Collateral | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair Value | $ 0 | $ 10,743 |
Fiat | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Obligation to return collateral | 740 | 0 |
Fiat | Asset Pledged as Collateral | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Fair Value | $ 3,935 | $ 41,630 |
INDEBTEDNESS - Schedule of Long
INDEBTEDNESS - Schedule of Long Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Debt Instrument [Line Items] | ||
Debt instrument, stated percentage | 4.49% | |
Principal Amount | $ 3,110,470 | $ 3,437,500 |
Unamortized Debt Discount and Issuance Costs | (33,871) | (44,052) |
Net Carrying Amount | $ 3,076,599 | $ 3,393,448 |
Convertible notes | 2026 Convertible Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, stated percentage | 0.50% | 0.50% |
Effective Interest Rate | 0.98% | 0.98% |
Principal Amount | $ 1,373,013 | $ 1,437,500 |
Unamortized Debt Discount and Issuance Costs | (18,134) | (23,339) |
Net Carrying Amount | $ 1,354,879 | $ 1,414,161 |
Senior Notes | 2028 Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, stated percentage | 3.38% | 3.38% |
Effective Interest Rate | 3.57% | 3.57% |
Principal Amount | $ 1,000,000 | $ 1,000,000 |
Unamortized Debt Discount and Issuance Costs | (8,623) | (10,022) |
Net Carrying Amount | $ 991,377 | $ 989,978 |
Senior Notes | 2031 Senior Notes | ||
Debt Instrument [Line Items] | ||
Debt instrument, stated percentage | 3.63% | 3.63% |
Effective Interest Rate | 3.77% | 3.77% |
Principal Amount | $ 737,457 | $ 1,000,000 |
Unamortized Debt Discount and Issuance Costs | (7,114) | (10,691) |
Net Carrying Amount | $ 730,343 | $ 989,309 |
INDEBTEDNESS - Narrative (Detai
INDEBTEDNESS - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 2 Months Ended | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2021 | May 31, 2021 | |
Debt Instrument [Line Items] | ||||||||
Gain on extinguishment of debt | $ 81,591 | $ 0 | $ 99,446 | $ 0 | ||||
Convertible Senior Notes due 2026 | Convertible notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Face amount of debt | $ 1,400,000 | |||||||
Repayments of debt | $ 45,500 | |||||||
Repurchased face amount | 64,500 | |||||||
Debt repurchase amount | 63,600 | |||||||
Original issue discount | 900 | |||||||
Legal fees | $ 300 | |||||||
Gain on extinguishment of debt | 17,800 | |||||||
2028 Senior Notes | Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Face amount of debt | $ 1,000,000 | |||||||
2031 Senior Notes | Senior Notes | ||||||||
Debt Instrument [Line Items] | ||||||||
Face amount of debt | $ 1,000,000 | |||||||
Repurchased face amount | $ 262,500 | 262,500 | 262,500 | |||||
Debt repurchase amount | 259,900 | 259,900 | 259,900 | |||||
Original issue discount | 2,600 | 2,600 | 2,600 | |||||
Payment for debt extinguishment | 177,200 | |||||||
Legal fees | $ 1,100 | 1,100 | 1,100 | |||||
Gain on extinguishment of debt | $ 81,600 | $ 81,600 |
INDEBTEDNESS - Schedule of Inte
INDEBTEDNESS - Schedule of Interest Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Debt Disclosure [Abstract] | ||||
Coupon interest | $ 18,510 | $ 19,296 | $ 57,095 | $ 57,937 |
Amortization of debt discount and issuance costs | 2,262 | 2,204 | 6,665 | 6,442 |
Total | $ 20,772 | $ 21,500 | $ 63,760 | $ 64,379 |
DERIVATIVES - Description of de
DERIVATIVES - Description of derivatives and related hedge accounting designation (Details) | Sep. 30, 2023 | Dec. 31, 2022 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Derivative Asset, Statement of Financial Position [Extensible Enumeration] | Accounts and loans receivable, net of allowance, Prepaid expenses and other current assets | Accounts and loans receivable, net of allowance, Prepaid expenses and other current assets |
Derivative Liability, Statement of Financial Position [Extensible Enumeration] | Accrued expenses and other current liabilities, Crypto asset borrowings | Accrued expenses and other current liabilities, Crypto asset borrowings |
DERIVATIVES - Schedule of notio
DERIVATIVES - Schedule of notional amount of derivative contracts outstanding (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Crypto asset borrowings with embedded derivatives | Designated as fair value hedging instruments | ||
Derivative [Line Items] | ||
Notional amount of derivative contracts outstanding in native units | $ 51,149 | $ 80,999 |
Crypto asset borrowings with embedded derivatives | Not designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional amount of derivative contracts outstanding in native units | 62,371 | 70,462 |
Crypto asset futures | Designated as fair value hedging instruments | ||
Derivative [Line Items] | ||
Notional amount of derivative contracts outstanding in native units | 7,889 | 136,230 |
Crypto asset futures | Not designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional amount of derivative contracts outstanding in native units | 13,012 | 12,462 |
Accounts receivable denominated in crypto assets | Not designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional amount of derivative contracts outstanding in native units | 59,714 | 101,598 |
Other payables denominated in crypto assets | Not designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional amount of derivative contracts outstanding in native units | 13,111 | 4,267 |
Crypto assets pledged as collateral | Not designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional amount of derivative contracts outstanding in native units | 0 | 13,103 |
Other | Not designated as hedging instruments | ||
Derivative [Line Items] | ||
Notional amount of derivative contracts outstanding in native units | $ 19,396 | $ 0 |
DERIVATIVES - Schedule of deriv
DERIVATIVES - Schedule of derivative assets and liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gross Derivative Assets | $ 19,997 | $ 19,997 | $ 3,838 | ||
Gross Derivative Liabilities | 6,025 | 6,025 | 19,583 | ||
Borrowing fees paid in crypto assets | 700 | $ 900 | $ 3,400 | $ 3,900 | |
Minimum | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Crypto asset, fee on borrowings | 1.50% | 0% | |||
Maximum | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Crypto asset, fee on borrowings | 9.30% | 7.50% | |||
Crypto asset borrowings with embedded derivatives | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gross Derivative Assets | 5,557 | $ 5,557 | 2,266 | ||
Gross Derivative Liabilities | 1,292 | 1,292 | 2,310 | ||
Accounts receivable denominated in crypto assets | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gross Derivative Assets | 9,542 | 9,542 | 302 | ||
Gross Derivative Liabilities | 1,705 | 1,705 | 9,146 | ||
Other payables denominated in crypto assets | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gross Derivative Assets | 4,495 | 4,495 | 1,270 | ||
Gross Derivative Liabilities | 2,965 | 2,965 | 5,767 | ||
Crypto assets pledged as collateral | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gross Derivative Assets | 0 | ||||
Gross Derivative Liabilities | 2,360 | ||||
Other | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gross Derivative Assets | 403 | 403 | |||
Gross Derivative Liabilities | 63 | 63 | |||
Not designated as hedging instruments | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gross Derivative Assets | 17,192 | 17,192 | 3,838 | ||
Gross Derivative Liabilities | 5,256 | 5,256 | 17,930 | ||
Not designated as hedging instruments | Crypto asset borrowings with embedded derivatives | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gross Derivative Assets | 2,752 | 2,752 | 2,266 | ||
Gross Derivative Liabilities | 523 | 523 | 657 | ||
Not designated as hedging instruments | Accounts receivable denominated in crypto assets | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gross Derivative Assets | 9,542 | 9,542 | 302 | ||
Gross Derivative Liabilities | 1,705 | 1,705 | 9,146 | ||
Not designated as hedging instruments | Other payables denominated in crypto assets | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gross Derivative Assets | 4,495 | 4,495 | 1,270 | ||
Gross Derivative Liabilities | 2,965 | 2,965 | 5,767 | ||
Not designated as hedging instruments | Crypto assets pledged as collateral | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gross Derivative Assets | 0 | ||||
Gross Derivative Liabilities | 2,360 | ||||
Not designated as hedging instruments | Other | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gross Derivative Assets | 403 | 403 | |||
Gross Derivative Liabilities | 63 | 63 | |||
Designated as fair value hedging instruments | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gross Derivative Assets | 2,805 | 2,805 | 0 | ||
Gross Derivative Liabilities | 769 | 769 | 1,653 | ||
Designated as fair value hedging instruments | Crypto asset borrowings with embedded derivatives | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gross Derivative Assets | 2,805 | 2,805 | 0 | ||
Gross Derivative Liabilities | 769 | 769 | 1,653 | ||
Designated as fair value hedging instruments | Accounts receivable denominated in crypto assets | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gross Derivative Assets | 0 | 0 | 0 | ||
Gross Derivative Liabilities | 0 | 0 | 0 | ||
Designated as fair value hedging instruments | Other payables denominated in crypto assets | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gross Derivative Assets | 0 | 0 | 0 | ||
Gross Derivative Liabilities | 0 | 0 | 0 | ||
Designated as fair value hedging instruments | Crypto assets pledged as collateral | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gross Derivative Assets | 0 | ||||
Gross Derivative Liabilities | $ 0 | ||||
Designated as fair value hedging instruments | Other | |||||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |||||
Gross Derivative Assets | 0 | 0 | |||
Gross Derivative Liabilities | $ 0 | $ 0 |
DERIVATIVES - Schedule of gains
DERIVATIVES - Schedule of gains (losses) recorded in income (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Not designated as hedging instruments | ||||
Derivative [Line Items] | ||||
Derivatives | $ 17,890 | $ (195,096) | $ (66,053) | $ 176,347 |
Hedged Items | (5,578) | 207,035 | 91,846 | (166,567) |
Income Statement Impact | 12,312 | 11,939 | 25,793 | 9,780 |
Crypto asset borrowings with embedded derivatives | Designated as fair value hedging instruments | ||||
Derivative [Line Items] | ||||
Derivatives | 12,707 | (211,110) | (75,848) | 148,959 |
Hedged Items | (4,247) | 207,112 | 44,686 | (154,228) |
Income Statement Impact | 8,460 | (3,998) | (31,162) | (5,269) |
Crypto asset borrowings with embedded derivatives | Not designated as hedging instruments | ||||
Derivative [Line Items] | ||||
Derivatives | (30) | 0 | 166 | 6,626 |
Hedged Items | 0 | 0 | 0 | 0 |
Income Statement Impact | (30) | 0 | 166 | 6,626 |
Crypto asset futures | Designated as fair value hedging instruments | ||||
Derivative [Line Items] | ||||
Derivatives | 1,329 | 225 | (41,782) | 13,237 |
Hedged Items | (1,331) | (77) | 47,160 | (12,339) |
Income Statement Impact | (2) | 148 | 5,378 | 898 |
Crypto asset futures | Not designated as hedging instruments | ||||
Derivative [Line Items] | ||||
Derivatives | 558 | (566) | 960 | (1,077) |
Hedged Items | 0 | 0 | 0 | 0 |
Income Statement Impact | 558 | (566) | 960 | (1,077) |
Accounts receivable denominated in crypto assets | Not designated as hedging instruments | ||||
Derivative [Line Items] | ||||
Derivatives | (8,466) | (4,213) | 38,614 | (14,476) |
Hedged Items | 0 | 0 | 0 | 0 |
Income Statement Impact | (8,466) | (4,213) | 38,614 | (14,476) |
Other payables denominated in crypto assets | Not designated as hedging instruments | ||||
Derivative [Line Items] | ||||
Derivatives | 6,337 | (2,367) | 7,181 | 143 |
Hedged Items | 0 | 0 | 0 | 0 |
Income Statement Impact | 6,337 | (2,367) | 7,181 | 143 |
Foreign currency forward contracts | Not designated as hedging instruments | ||||
Derivative [Line Items] | ||||
Derivatives | 0 | 22,935 | 0 | 22,935 |
Hedged Items | 0 | 0 | 0 | 0 |
Income Statement Impact | 0 | 22,935 | 0 | 22,935 |
Crypto assets pledged as collateral | Not designated as hedging instruments | ||||
Derivative [Line Items] | ||||
Derivatives | 196 | 0 | ||
Hedged Items | 0 | 0 | ||
Income Statement Impact | 196 | 0 | ||
Other | Not designated as hedging instruments | ||||
Derivative [Line Items] | ||||
Derivatives | 5,259 | 0 | 4,656 | 0 |
Hedged Items | 0 | 0 | 0 | 0 |
Income Statement Impact | $ 5,259 | $ 0 | $ 4,656 | $ 0 |
DERIVATIVES - Schedule of cumul
DERIVATIVES - Schedule of cumulative fair value hedge basis adjustments (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Carrying amount of the hedged items, Crypto assets held | $ 56,564 | $ 201,565 |
Cumulative amount of fair value hedging adjustments included in the carrying amount of hedged items, active hedging relationships, Crypto assets held | (52,047) | (562) |
Cumulative amount of fair value hedging adjustments included in the carrying amount of hedged items, discontinued hedging relationships, Crypto assets held | (1,796) | 670 |
Cumulative amount of fair value hedging adjustments included in the carrying amount of hedged items, total, Crypto assets held | $ (53,843) | $ 108 |
FAIR VALUE MEASUREMENTS - Sched
FAIR VALUE MEASUREMENTS - Schedule of fair value of assets and liabilities (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 | Sep. 30, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | $ 5,100,799 | $ 4,425,021 | $ 5,006,584 |
Derivative assets | 19,997 | 3,838 | |
Crypto asset loans receivable | 57,517 | 85,826 | |
Safeguarding customer crypto assets | 114,291,909 | 75,413,188 | |
Derivative liabilities | 6,025 | 19,583 | |
Safeguarding customer crypto liabilities | 114,291,909 | 75,413,188 | |
Customer custodial funds excluded from fair value assets | 900,000 | 3,000,000 | |
Crypto assets held at cost excluded from fair value assets | 399,400 | 222,800 | |
Embedded Derivative Financial Instruments, Crypto Asset Borrowings | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 5,557 | 2,266 | |
Derivative liabilities | 1,292 | 2,310 | |
Held in Deposit at Financial Institutions | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 1,300,000 | 2,000,000 | |
Held in Deposit at Venues | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 163,500 | 143,200 | |
Fair Value, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 3,680,337 | 2,250,065 | |
Customer custodial funds | 2,541,561 | 2,088,132 | |
Crypto assets held | 56,564 | 201,565 | |
Derivative assets | 10,455 | 3,838 | |
Crypto asset loans receivable | 57,517 | 85,826 | |
Safeguarding customer crypto assets | 114,291,909 | 75,413,188 | |
Total assets | 120,638,343 | 80,042,614 | |
Derivative liabilities | 4,833 | 19,583 | |
Contingent consideration arrangement | 1,855 | ||
Safeguarding customer crypto liabilities | 114,291,909 | 75,413,188 | |
Total liabilities | 114,296,742 | 75,434,626 | |
Fair Value, Recurring | Embedded Derivative Financial Instruments, Crypto Asset Borrowings | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Derivative assets | 9,500 | 300 | |
Derivative liabilities | 1,200 | 6,000 | |
Level 1 | Fair Value, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 3,680,337 | 2,250,065 | |
Customer custodial funds | 2,541,561 | 2,088,132 | |
Crypto assets held | 56,564 | 201,565 | |
Derivative assets | 0 | 0 | |
Crypto asset loans receivable | 0 | 0 | |
Safeguarding customer crypto assets | 0 | 0 | |
Total assets | 6,278,462 | 4,539,762 | |
Derivative liabilities | 0 | 0 | |
Contingent consideration arrangement | 0 | ||
Safeguarding customer crypto liabilities | 0 | 0 | |
Total liabilities | 0 | 0 | |
Level 2 | Fair Value, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 0 | 0 | |
Customer custodial funds | 0 | 0 | |
Crypto assets held | 0 | 0 | |
Derivative assets | 10,455 | 3,838 | |
Crypto asset loans receivable | 57,517 | 85,826 | |
Safeguarding customer crypto assets | 114,291,909 | 75,413,188 | |
Total assets | 114,359,881 | 75,502,852 | |
Derivative liabilities | 4,833 | 19,583 | |
Contingent consideration arrangement | 0 | ||
Safeguarding customer crypto liabilities | 114,291,909 | 75,413,188 | |
Total liabilities | 114,296,742 | 75,432,771 | |
Level 3 | Fair Value, Recurring | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Cash and cash equivalents | 0 | 0 | |
Customer custodial funds | 0 | 0 | |
Crypto assets held | 0 | 0 | |
Derivative assets | 0 | 0 | |
Crypto asset loans receivable | 0 | 0 | |
Safeguarding customer crypto assets | 0 | 0 | |
Total assets | 0 | 0 | |
Derivative liabilities | 0 | 0 | |
Contingent consideration arrangement | 1,855 | ||
Safeguarding customer crypto liabilities | 0 | 0 | |
Total liabilities | $ 0 | $ 1,855 |
FAIR VALUE MEASUREMENTS - Narra
FAIR VALUE MEASUREMENTS - Narrative (Details) - Level 2 $ in Billions | Sep. 30, 2023 USD ($) |
Convertible Senior Notes due 2026 | Convertible notes | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value of notes | $ 1 |
2028 and 2031 Senior Notes | Senior Notes | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair value of notes | $ 1.2 |
COMMON STOCK - Narrative (Detai
COMMON STOCK - Narrative (Details) | Apr. 01, 2021 vote shares | Sep. 30, 2023 shares | Dec. 31, 2022 shares |
Class A common stock | |||
Class of Stock [Line Items] | |||
Common stock, authorized (in shares) | 10,000,000,000 | 10,000,000,000 | 10,000,000,000 |
Common stock, voting rights per share | vote | 1 | ||
Class B common stock | |||
Class of Stock [Line Items] | |||
Common stock, authorized (in shares) | 500,000,000 | 500,000,000 | 500,000,000 |
Common stock, voting rights per share | vote | 20 | ||
Common stock, conversion ratio | 1 | ||
Undesignated common stock | |||
Class of Stock [Line Items] | |||
Common stock, authorized (in shares) | 500,000,000 | ||
Undesignated preferred stock | |||
Class of Stock [Line Items] | |||
Common stock, authorized (in shares) | 500,000,000 |
COMMON STOCK - Schedule of shar
COMMON STOCK - Schedule of shares reserved for future issuance (Details) - shares shares in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Class A common stock | ||
Class of Stock [Line Items] | ||
Common stock reserved for future issuance (in shares) | 92,238 | 84,438 |
Options issued and outstanding under the 2013 Amended and Restated Stock Plan (the “2013 Plan”) | ||
Class of Stock [Line Items] | ||
Common stock reserved for future issuance (in shares) | 902 | 982 |
Options issued and outstanding under the 2019 Equity Incentive Plan (the “2019 Plan”) | ||
Class of Stock [Line Items] | ||
Common stock reserved for future issuance (in shares) | 23,560 | 25,314 |
RSUs issued and outstanding under the 2019 Plan | ||
Class of Stock [Line Items] | ||
Common stock reserved for future issuance (in shares) | 1,100 | 2,418 |
Options issued and outstanding under the 2021 Equity Incentive Plan (the “2021 Plan”) | ||
Class of Stock [Line Items] | ||
Common stock reserved for future issuance (in shares) | 1,599 | 862 |
RSUs issued and outstanding under the 2021 Plan | ||
Class of Stock [Line Items] | ||
Common stock reserved for future issuance (in shares) | 4,413 | 2,911 |
PRSUs Issued and Outstanding under 2021 Plan | ||
Class of Stock [Line Items] | ||
Common stock reserved for future issuance (in shares) | 804 | 0 |
Shares available for future issuance under the 2021 Plan | ||
Class of Stock [Line Items] | ||
Common stock reserved for future issuance (in shares) | 48,341 | 42,819 |
Shares available for future issuance under the ESPP | ||
Class of Stock [Line Items] | ||
Common stock reserved for future issuance (in shares) | 9,083 | 6,701 |
RSUs And Replacement Options Issued And Outstanding From Acquisition | ||
Class of Stock [Line Items] | ||
Common stock reserved for future issuance (in shares) | 140 | 135 |
Shares available for future issuance of warrants | ||
Class of Stock [Line Items] | ||
Common stock reserved for future issuance (in shares) | 2,296 | 2,296 |
Class B common stock | ||
Class of Stock [Line Items] | ||
Common stock reserved for future issuance (in shares) | 3,823 | 4,502 |
Options issued and outstanding under the 2013 Plan | ||
Class of Stock [Line Items] | ||
Common stock reserved for future issuance (in shares) | 3,823 | 4,502 |
STOCK-BASED COMPENSATION - Sche
STOCK-BASED COMPENSATION - Schedule of stock option activity (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2023 USD ($) $ / shares shares | Dec. 31, 2022 USD ($) $ / shares shares | |
Options Outstanding | ||
Beginning balance (in shares) | shares | 31,795 | |
Granted (in shares) | shares | 843 | |
Exercised (in shares) | shares | (1,883) | |
Forfeited and cancelled (in shares) | shares | (814) | |
Ending balance (in shares) | shares | 29,941 | 31,795 |
Weighted Average Exercise Price per Share | ||
Options outstanding, weighted average exercise price per share - Beginning balance (in dollars per share) | $ / shares | $ 23.31 | |
Options granted, weighted average exercise price per share (in dollars per share) | $ / shares | 73.07 | |
Options exercised, weighted average exercise price per share (in dollars per share) | $ / shares | 14.61 | |
Options forfeited and cancelled, weighted average exercise price per share (in dollars per share) | $ / shares | 41.14 | |
Options outstanding, weighted average exercise price per share - Ending balance (in dollars per share) | $ / shares | $ 24.77 | $ 23.31 |
Stock Option Activity, Additional Disclosures | ||
Options outstanding, Weighted average remaining contractual term | 6 years 3 months 25 days | 6 years 11 months 12 days |
Options outstanding, Aggregate intrinsic value | $ | $ 1,583,971 | $ 504,222 |
Options vested and exercisable, Number of options (in shares) | shares | 23,800 | |
Options vested and exercisable , Weighted average exercise price per share (in dollars per share) | $ / shares | $ 25.12 | |
Options vested and exercisable, Weighted average remaining contractual term | 6 years 2 months 4 days | |
Options vested and exercisable, Aggregate intrinsic value | $ | $ 1,266,795 | |
Options vested and expected to vest, Number of options (in shares) | shares | 23,858 | |
Options vested and expected to vest, Weighted average exercise price per share (in dollars per share) | $ / shares | $ 25.10 | |
Options vested and expected to vest, Weighted average remaining contractual term | 6 years 2 months 4 days | |
Options vested and expected to vest, Aggregate intrinsic value | $ | $ 1,270,146 |
STOCK-BASED COMPENSATION - Narr
STOCK-BASED COMPENSATION - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 36 Months Ended | ||||
Apr. 20, 2023 | Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2025 | Dec. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Total unrecognized compensation cost related to unvested stock options | $ 87,300 | $ 87,300 | |||||
Granted (in shares) | 843,000 | ||||||
Options granted, weighted average exercise price per share (in dollars per share) | $ 73.07 | ||||||
Stock based compensation expense | 218,153 | $ 391,441 | $ 700,827 | $ 1,135,078 | |||
Share based payment arrangement, capitalized | $ (15,700) | $ (26,300) | $ (44,700) | $ (97,700) | |||
Class A common stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Assumed options from acquisition (in shares) | 0 | 842,617 | |||||
Options assumed from acquisition, weighted average exercise price per share (in dollars per share) | $ 40.85 | ||||||
Common stock reserved for future issuance (in shares) | 92,238,000 | 92,238,000 | 84,438,000 | ||||
Stock options | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock based compensation vesting period | 3 years | ||||||
Unrecognized compensation cost, weighted-average period of recognition | 2 years 3 months 18 days | ||||||
Number of shares subject to repurchase (in shares) | 50,986 | 50,986 | |||||
Value of shares related to repurchase | $ 1,200 | $ 1,200 | |||||
Vesting rights, percentage | 8.33% | ||||||
Share-based payment arrangement | Chief Executive Officer | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock based compensation expense | 1,000 | $ 2,900 | |||||
RSUs | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation cost, weighted-average period of recognition | 1 year 3 months 18 days | ||||||
Total unrecognized compensation cost | 429,100 | $ 429,100 | |||||
Granted (in shares) | 9,316,000 | ||||||
RSUs | Minimum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock based compensation vesting period | 1 year | ||||||
RSUs | Maximum | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock based compensation vesting period | 4 years | ||||||
Restricted common stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock based compensation vesting period | 3 years | ||||||
Unrecognized compensation cost, weighted-average period of recognition | 1 year 7 months 6 days | ||||||
Total unrecognized compensation cost | 40,400 | $ 40,400 | |||||
Granted (in shares) | 263,000 | ||||||
ESPP | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock plan offering period | 24 months | ||||||
Accumulated payroll deductions | 8,600 | $ 8,600 | |||||
ESPP | Class A common stock | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Discount on purchase price of common stock | 15% | ||||||
Performance shares | President | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock based compensation expense | 3,500 | $ 6,300 | |||||
Common stock reserved for future issuance (in shares) | 803,966 | ||||||
Granted (in shares) | 401,983 | ||||||
Grant date fair value | $ 25,100 | ||||||
Performance shares | President | Forecast | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Stock based compensation vesting period | 3 years | ||||||
Performance shares | President | Share-based Payment Arrangement, Tranche Two | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting rights, percentage | 60% | ||||||
Performance shares | President | Share-based Payment Arrangement, Tranche One | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Vesting rights, percentage | 40% | ||||||
PRSUs | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Unrecognized compensation cost, weighted-average period of recognition | 2 years | ||||||
Total unrecognized compensation cost | $ 18,800 | $ 18,800 | |||||
Granted (in shares) | 804,000 |
STOCK-BASED COMPENSATION - Valu
STOCK-BASED COMPENSATION - Valuation Assumptions (Details) - Stock options | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Dividend yield | 0% | 0% |
Expected volatility | 90.50% | 59.30% |
Expected term (in years) | 5 years 9 months 18 days | 5 years 9 months 18 days |
Risk-free interest rate | 3.90% | 2.10% |
STOCK-BASED COMPENSATION - Sc_2
STOCK-BASED COMPENSATION - Schedule of restricted stock unit and restricted stock activity (Details) shares in Thousands | 9 Months Ended |
Sep. 30, 2023 $ / shares shares | |
RSUs | |
Number of Shares | |
Beginning balance (in shares) | shares | 5,329 |
Granted (in shares) | shares | 9,316 |
Vested (in shares) | shares | (7,763) |
Forfeited and cancelled (in shares) | shares | (1,286) |
Ending balance (in shares) | shares | 5,596 |
Weighted-Average Grant Date Fair Value Per Share | |
Beginning balance, weighted-average grant date fair value per share (in dollars per share) | $ / shares | $ 127.85 |
Granted, Weighted-average grant date fair value per share (in dollars per share) | $ / shares | 57.59 |
Vested, Weighted-average grant date fair value per share (in dollars per share) | $ / shares | 71.61 |
Forfeited and cancelled, Weighted-average grant date fair value per share (in dollars per share) | $ / shares | 120.61 |
Ending balance, weighted-average grant date fair value per share (in dollars per share) | $ / shares | $ 90.58 |
Restricted common stock | |
Number of Shares | |
Beginning balance (in shares) | shares | 1,275 |
Granted (in shares) | shares | 263 |
Vested (in shares) | shares | (954) |
Forfeited and cancelled (in shares) | shares | (29) |
Ending balance (in shares) | shares | 555 |
Weighted-Average Grant Date Fair Value Per Share | |
Beginning balance, weighted-average grant date fair value per share (in dollars per share) | $ / shares | $ 139.72 |
Granted, Weighted-average grant date fair value per share (in dollars per share) | $ / shares | 64.51 |
Vested, Weighted-average grant date fair value per share (in dollars per share) | $ / shares | 130.45 |
Forfeited and cancelled, Weighted-average grant date fair value per share (in dollars per share) | $ / shares | 171.85 |
Ending balance, weighted-average grant date fair value per share (in dollars per share) | $ / shares | $ 118.33 |
STOCK-BASED COMPENSATION - Sc_3
STOCK-BASED COMPENSATION - Schedule of performance restricted stock unit (Details) - PRSUs shares in Thousands | 9 Months Ended |
Sep. 30, 2023 $ / shares shares | |
Number of Shares | |
Beginning balance (in shares) | shares | 0 |
Granted (in shares) | shares | 804 |
Ending balance (in shares) | shares | 804 |
Weighted-Average Grant Date Fair Value Per Share | |
Beginning balance, weighted-average grant date fair value per share (in dollars per share) | $ / shares | $ 0 |
Granted, Weighted-average grant date fair value per share (in dollars per share) | $ / shares | 55.42 |
Ending balance, weighted-average grant date fair value per share (in dollars per share) | $ / shares | $ 55.42 |
STOCK-BASED COMPENSATION - Sc_4
STOCK-BASED COMPENSATION - Schedule of stock based compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock based compensation expense | $ 218,153 | $ 391,441 | $ 700,827 | $ 1,135,078 |
Technology and development | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock based compensation expense | 130,776 | 275,817 | 376,941 | 793,573 |
Sales and marketing | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock based compensation expense | 16,556 | 18,461 | 45,695 | 52,813 |
General and administrative | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock based compensation expense | 70,821 | 97,163 | 194,149 | 288,692 |
Restructuring | ||||
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items] | ||||
Stock based compensation expense | $ 0 | $ 0 | $ 84,042 | $ 0 |
OTHER (INCOME) EXPENSE, NET (De
OTHER (INCOME) EXPENSE, NET (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Other Income and Expenses [Abstract] | ||||
Losses on foreign exchange | $ 382 | $ 64,509 | $ 10,916 | $ 198,891 |
(Gains) losses on strategic investments | (48,488) | (3,408) | (38,330) | 70,153 |
Gain on extinguishment of long-term debt, net | (81,591) | 0 | (99,446) | 0 |
Other | (5,610) | 4,598 | (4,746) | 2,023 |
Other (income) expense, net | $ (135,307) | $ 65,699 | $ (131,606) | $ 271,067 |
INCOME TAXES - Narrative (Detai
INCOME TAXES - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |||||
Effective income tax rate | 106.50% | 15.40% | 14.90% | 17.10% | |
Provision for income taxes at U.S. statutory rate | 21% | 21% | |||
Valuation allowance | $ 177.2 | ||||
Capital losses - realized / unrealized | $ 40 | $ 40 | $ 225.2 | ||
Partial valuation allowance release | $ 40 |
NET LOSS PER SHARE - Schedule o
NET LOSS PER SHARE - Schedule of net income per share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Numerator | ||||
Net loss | $ (2,265) | $ (544,635) | $ (178,566) | $ (2,067,948) |
Net loss attributable to common stockholders, basic | $ (2,265) | $ (544,635) | $ (178,566) | $ (2,067,948) |
Denominator | ||||
Weighted-average shares of common stock used to compute net loss per share attributable to common stockholders, basic (in shares) | 237,270 | 223,916 | 234,479 | 220,816 |
Net loss per share attributable to common stockholders, basic (in dollars per share) | $ (0.01) | $ (2.43) | $ (0.76) | $ (9.37) |
Numerator | ||||
Net loss | $ (2,265) | $ (544,635) | $ (178,566) | $ (2,067,948) |
Less: Fair value gain on contingent consideration arrangement, net of tax | 0 | 0 | 0 | (5,395) |
Net loss attributable to common stockholders, diluted | $ (2,265) | $ (544,635) | $ (178,566) | $ (2,073,343) |
Denominator | ||||
Weighted-average shares of common stock used to compute net loss per share attributable to common stockholders, basic (in shares) | 237,270 | 223,916 | 234,479 | 220,816 |
Contingent consideration (in shares) | 0 | 0 | 0 | 40 |
Diluted (in shares) | 237,270 | 223,916 | 234,479 | 220,856 |
Net income loss per share attributable to common stockholders, diluted (in dollars per share) | $ (0.01) | $ (2.43) | $ (0.76) | $ (9.39) |
NET LOSS PER SHARE - Schedule_2
NET LOSS PER SHARE - Schedule of potentially dilutive shares (Details) - shares shares in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of shares excluded in the computation of diluted earnings per share | 41,769 | 46,991 | 41,769 | 46,915 |
Stock options | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of shares excluded in the computation of diluted earnings per share | 29,941 | 33,411 | 29,941 | 33,411 |
RSUs | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of shares excluded in the computation of diluted earnings per share | 5,596 | 6,854 | 5,596 | 6,854 |
Convertible notes | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of shares excluded in the computation of diluted earnings per share | 3,706 | 3,880 | 3,706 | 3,880 |
ESPP | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of shares excluded in the computation of diluted earnings per share | 925 | 1,030 | 925 | 1,030 |
Restricted common stock | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of shares excluded in the computation of diluted earnings per share | 797 | 1,740 | 797 | 1,740 |
PRSUs | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of shares excluded in the computation of diluted earnings per share | 804 | 0 | 804 | 0 |
Contingent consideration | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of shares excluded in the computation of diluted earnings per share | 0 | 76 | 0 | 0 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) | 1 Months Ended | 2 Months Ended |
Jan. 31, 2023 USD ($) | Aug. 31, 2021 class_action_case | |
Loss Contingencies [Line Items] | ||
Number of purported securities class actions filed | class_action_case | 3 | |
Penalty awarded | $ 50,000,000 | |
Amount to be invested in company compliance function | $ 50,000,000 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Related Party Transaction [Line Items] | |||||
Revenue | $ 674,148 | $ 590,339 | $ 2,154,588 | $ 2,565,100 | |
Safeguarding customer crypto assets | 114,291,909 | 114,291,909 | $ 75,413,188 | ||
Safeguarding customer crypto liabilities | 114,291,909 | 114,291,909 | 75,413,188 | ||
Customer custodial cash liabilities | 3,474,489 | 3,474,489 | 4,829,587 | ||
Accounts payable | 36,744 | 36,744 | 56,043 | ||
Related Party | |||||
Related Party Transaction [Line Items] | |||||
Revenue | 3,400 | 1,900 | 11,600 | 9,500 | |
Amounts receivable from customers, net of allowance | 3,400 | 3,400 | 1,300 | ||
Safeguarding customer crypto assets | 4,800,000 | 4,800,000 | 3,500,000 | ||
Safeguarding customer crypto liabilities | 4,800,000 | 4,800,000 | 3,500,000 | ||
Custodial cash funds, current | 71,600 | 71,600 | 14,200 | ||
Customer custodial cash liabilities | 71,600 | 71,600 | 14,200 | ||
Investments and other assets | 1,900 | $ 14,400 | 1,900 | $ 14,400 | |
Professional and consulting services | 400 | 1,000 | |||
Accounts payable | $ 200 | $ 200 | $ 0 |