Strategic investments include equity and debt investments in a number of non-public technology driven companies. We generally account for strategic equity investments under the ASC 321 measurement alternative for equity securities without readily determinable fair values, as there are no quoted market prices for the equity investments. The equity investments are measured at cost less impairment, adjusted for observable price changes and are assessed for impairment whenever events or changes in circumstances indicate that the fair value may be less than its carrying value.

For the debt security strategic investment, we have elected to account for this investment and the associated embedded derivatives utilizing the fair value option. Unrealized changes in fair value for the entire hybrid instrument are recorded within other income, net in the consolidated statements of operations.

In conjunction with certain of our strategic investments, we may have the ability to commit additional capital over time through warrants and call options; for some investments, the exercisability and exercise prices are conditional on the achievement of certain performance metrics. Depending on their contractual terms, our warrants and call options may be accounted for under either the ASC 321 measurement alternative or as derivative instruments under ASC 815.

During the quarter ended March 31, 2025, we closed a series of transactions to acquire additional equity interests in an existing strategic investee for an aggregate amount of $203.4 million.

During the quarter ended March 31, 2025, we also recognized a gain of $167.4 million related to an observable price change of a separate existing strategic investee. We also entered into a series of transactions to sell certain interests for cash consideration of $340.7 million in the same strategic investee. A majority of the sales closed during the quarter ended March 31, 2025, resulting in the Company receiving $290.9 million in cash consideration and realizing previously unrealized gains of $273.5 million, net of $1.3 million of transaction costs. The remaining sale closed in April 2025 for cash consideration of $49.8 million.


	March 31, 2025
	Strategic investments		Warrants		Call options		Total
Equity securities:
Non-marketable equity securities	$	388,390	$	4,368	$	11,600	$	404,358
Debt securities:
Non-marketable debt securities	9,335		—		—		9,335
Total strategic investments	$	397,725	$	4,368	$	11,600	$	413,693


	December 31, 2024
	Strategic investments		Warrants			Call options		Total
Equity securities:
Non-marketable equity securities	$	319,598	$	4,368		$	—	$	323,966
Debt securities:
Non-marketable debt securities	8,584		—		—	—		8,584
Total strategic investments	$	328,182	$	4,368		$	—	$	332,550

The life to date cumulative upward and downward adjustments to the carrying value of our strategic equity investments accounted for under the ASC 321 measurement alternative and still held as of March 31, 2025 were $68.3 million and $25.0 million, respectively.

The following tables summarizes the gains and losses associated with our strategic investments during the period (in thousands):


	Three Months Ended March 31, 2025
	Strategic Investments		Warrants		Call options		Total
Realized gains (losses) recognized on strategic investments during the period, net	$	273,478	$	—	$	—	$	273,478
Reversal of cumulative unrealized gains, net, for securities sold during the period	(136,982)		—		—		(136,982)
Unrealized gains on strategic investments still held at the reporting date(1)	30,825		—		—		30,825
Unrealized losses, including impairments, on strategic investments still held at the reporting date	—		—		—		—
Gains (losses) on strategic investments, net	$	167,321	$	—	$	—	$	167,321


	Three Months Ended March 31, 2024
	Strategic Investments		Warrants		Call options		Total
Realized gains (losses) recognized on strategic investments during the period, net	$	45,162	$	—	$	(2,870)	$	42,292
Unrealized gains on strategic investments still held at the reporting date	74,784		855		—		75,639
Unrealized losses, including impairments, on strategic investments still held at the reporting date	—		—		—		—
Gains (losses) on strategic investments, net	$	119,946	$	855	$	(2,870)	$	117,931