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FAIR VALUE MEASUREMENTS AND STRATEGIC INVESTMENTS
 6 Months Ended
Jun. 30, 2025
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS AND STRATEGIC INVESTMENTS
11. FAIR VALUE MEASUREMENTS AND STRATEGIC INVESTMENTS
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):
June 30, 2025December 31, 2024
Level 1Level 2Level 1Level 2
Assets
Cash equivalents(1)
$5,980,319 $— $6,607,023 $— 
Restricted cash equivalents(2)
2,519 — 1,415 — 
Customer custodial funds(3)
3,139,226 — 4,269,410 — 
Crypto assets held for operations125,974 — 82,781 — 
Crypto asset loan receivables— 53,129 — 92,619 
Crypto assets held as collateral951,272 — 767,484 — 
Crypto assets borrowed223,620 — 261,052 — 
Other current assets(4)
105,711 — — — 
Crypto assets held for investment1,838,887 — 1,552,995 — 
Strategic investments(5)
1,543,261 10,340 — — 
Derivative assets(6)
— 60,194 — 108,665 
Total assets$13,910,789 $123,663 $13,542,160 $201,284 
Liabilities
Derivative liabilities(6)
$— $317,837 $— $255,915 
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(1)Represents cash equivalents, which comprise money market funds. Excludes cash of $1.6 billion and $1.9 billion as of June 30, 2025 and December 31, 2024, respectively.
(2)Represents restricted cash equivalents, which comprise money market funds. Excludes restricted cash of $66.7 million and $37.1 million as of June 30, 2025 and December 31, 2024, respectively.
(3)Represents customer custodial cash equivalents, which comprise money market funds. Excludes customer custodial funds of $2.0 billion and $1.9 billion as of June 30, 2025 and December 31, 2024, respectively.
(4)Represents short-term investments. Excludes Other current assets that are not measured and recorded at fair value of $173.5 million and $277.5 million as of June 30, 2025 and December 31, 2024, respectively.
(5)Represents marketable equity securities. Excludes strategic investments that are not measured and recorded at fair value on a recurring basis of $380.2 million and $374.2 million as of June 30, 2025 and December 31, 2024, respectively.
(6)See Note 9. Derivatives for additional details.
The Company has valued all Level 2 assets and liabilities measured at fair value on a recurring basis using quoted market prices as an observable input. This includes prices for underlying crypto assets and, for non-crypto denominated assets and liabilities, prices for similar assets and liabilities in inactive markets.
During the three and six months ended June 30, 2025, there were net unrealized gains of $1.5 billion related to the Company’s marketable equity securities held as of June 30, 2025. There were no realized gains or losses during these periods as no marketable equity securities were sold, and nearly all of this investment balance is subject to restrictions as to disposition.
Assets and liabilities measured and recorded at fair value on a non-recurring basis
The Company’s non-financial assets, such as software and equipment, goodwill, and other intangible assets, are adjusted to fair value when an impairment charge is recognized.
Nearly all of the Company’s strategic investments measured and recorded at fair value on a non-recurring basis due to the lack of readily determinable fair values are accounted for using the measurement alternative, whereby they are recognized at cost and adjusted to fair value for observable transactions for same or similar investments of the same issuer or for impairment, on a non-recurring basis. Fair value measurements for these strategic investments are based predominantly on Level 3 inputs to 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.
The impact on the Condensed Consolidated Statements of Operations from remeasurement of measurement alternative investments was immaterial for all periods presented, as were cumulative upward adjustments of measurement alternative investments outstanding at June 30, 2025 and December 31, 2024. Cumulative impairments and downward adjustments as of these dates were $121.6 million and $145.8 million, respectively.
Assets and liabilities not measured and recorded at fair value
Certain of the Company’s financial instruments are not measured and recorded at fair value because carrying values of these instruments approximate their fair values due to their liquid or short-term nature. The following financial instruments denominated in fiat or USDC, as applicable, would be based on Level 1 valuation inputs if they were recorded at fair value: cash, restricted cash, USDC, certain customer custodial funds and related liabilities, collateral pledged, and obligations to return collateral. The following financial instruments denominated in fiat or USDC, as applicable, would be based on Level 2 valuation inputs if they were recorded at fair value: accounts receivable, loan receivables, accounts payable, and long-term debt.
The Company’s long-term debt is not measured and recorded at fair value. See Note 8. Long-Term Debt for the estimated fair value of the Company’s long-term debt.