COINBASE GLOBAL, INC., 10-Q filed on 5/2/2024
Quarterly Report
v3.24.1.u1
Cover Page - shares
 3 Months Ended
Mar. 31, 2024
Apr. 25, 2024
Entity Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2024  
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, $0.00001 par value per share  
Trading Symbol COIN  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Central Index Key 0001679788  
Amendment Flag false  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q1  
Current Fiscal Year End Date --12-31  
Class A common stock    
Entity Information [Line Items]    
Entity Common Stock, Shares Outstanding   199,758,519
Class B common stock    
Entity Information [Line Items]    
Entity Common Stock, Shares Outstanding   45,810,422
v3.24.1.u1
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Current assets:    
Cash and cash equivalents $ 6,711,400 $ 5,139,351
Restricted cash 33,499 22,992
Customer custodial funds 5,201,906 4,570,845
Safeguarding customer crypto assets 329,506,477 192,583,060
USDC 860,669 576,028
Loan receivables 529,143 193,425
Crypto assets held as collateral 106,610 0
Crypto assets held as collateral   0
Crypto assets borrowed 231,348 45,212
Accounts receivable, net 280,357 168,290
Other current assets 379,537 286,643
Total current assets 343,840,946 203,585,846
Crypto assets held for investment 1,522,328  
Crypto assets held for investment   330,610
Deferred tax assets 879,671 1,272,233
Goodwill 1,139,670 1,139,670
Other non-current assets 653,862 654,594
Total assets 348,036,477 206,982,953
Current liabilities:    
Customer custodial cash liabilities 5,201,906 4,570,845
Safeguarding customer crypto liabilities 329,506,477 192,583,060
Crypto asset borrowings 272,805  
Crypto asset borrowings   62,980
Obligation to return collateral 315,090 1,063
Accrued expenses and other current liabilities 438,321 496,183
Total current liabilities 335,734,599 197,714,131
Long-term debt 4,225,014 2,979,957
Other non-current liabilities 5,870 7,216
Total liabilities 339,965,483 200,701,304
Commitments and contingencies (Note 19)
Preferred stock, $0.00001 par value; 500,000 shares authorized and zero shares issued and outstanding at each of March 31, 2024 and December 31, 2023 0 0
Stockholders’ equity:    
Additional paid-in capital 4,550,408 4,491,571
Accumulated other comprehensive loss (37,496) (30,270)
Retained earnings 3,558,080 1,820,346
Total stockholders’ equity 8,070,994 6,281,649
Total liabilities and stockholders’ equity 348,036,477 206,982,953
Class A common stock    
Stockholders’ equity:    
Common stock 2 2
Class B common stock    
Stockholders’ equity:    
Common stock $ 0 $ 0
v3.24.1.u1
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares
Mar. 31, 2024
Dec. 31, 2023
Convertible preferred stock par value (in dollars per share) $ 0.00001 $ 0.00001
Convertible preferred shares authorized (in shares) 500,000,000 500,000,000
Convertible preferred shares issued (in shares) 0 0
Convertible preferred shares outstanding (in shares) 0 0
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) 199,449,000 195,192,000
Common stock, outstanding (in shares) 199,449,000 195,192,000
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) 45,922,000 46,856,000
Common stock, outstanding (in shares) 45,922,000 46,856,000
v3.24.1.u1
Condensed Consolidated Statements of Operations - USD ($)
shares in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Revenue:    
Revenue $ 1,637,570,000 $ 772,529,000
Operating expenses:    
Transaction expense 217,407,000 96,369,000
Technology and development 357,863,000 358,031,000
Sales and marketing 98,585,000 63,976,000
General and administrative 287,236,000 248,761,000
Gains on crypto assets held for operations, net (86,358,000) 0
Crypto asset impairment, net 0 17,962,000
Restructuring 0 144,489,000
Other operating expense (income), net 2,376,000 (33,184,000)
Total operating expenses 877,109,000 896,404,000
Operating income (loss) 760,461,000 (123,875,000)
Interest expense 19,071,000 21,536,000
Gains on crypto assets held for investment, net (650,429,000) 0
Other (income) expense, net (45,605,000) 20,265,000
Income (loss) before income taxes 1,437,424,000 (165,676,000)
Provision for (benefit from) income taxes 261,179,000 (86,780,000)
Net income (loss) 1,176,245,000 (78,896,000)
Net income (loss) attributable to common stockholders:    
Basic 1,175,479,000 (78,896,000)
Diluted $ 1,178,079,000 $ (78,896,000)
Net income (loss) per share attributable to common stockholders:    
Basic (in dollars per share) $ 4.84 $ (0.34)
Diluted (in dollars per share) $ 4.40 $ (0.34)
Weighted-average shares of common stock used to compute net income (loss) per share attributable to common stockholders:    
Basic (in shares) 242,793 231,489
Diluted (in shares) 267,945 231,489
Net revenue    
Revenue:    
Revenue $ 1,587,677,000 $ 736,398,000
Other revenue    
Revenue:    
Revenue $ 49,893,000 $ 36,131,000
v3.24.1.u1
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Statement of Comprehensive Income [Abstract]    
Net income (loss) $ 1,176,245 $ (78,896)
Other comprehensive income (loss):    
Translation adjustment (6,898) 12,513
Income tax effect 328 2,316
Translation adjustment, net of tax (7,226) 10,197
Comprehensive income (loss) $ 1,169,019 $ (68,699)
v3.24.1.u1
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($)
shares in Thousands, $ in Thousands
Total
Cumulative adjustment
Common Stock
Additional Paid-In Capital
Accumulated Other Comprehensive (Loss) Income
Retained Earnings
Retained Earnings
Cumulative adjustment
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 equity instruments as consideration for business combination (in shares)     961        
Issuance of equity instruments as consideration for business combinations 44,995     44,995      
Issuance of common stock upon settlement of stock awards, net of shares withheld (in shares)     1,955        
Issuance of common stock upon settlement of stock awards, net of shares withheld (62,497)     (62,497)      
Issuance of common stock upon exercise of stock options, net of repurchases (in shares)     713        
Issuance of common stock upon exercise of stock options, net of repurchases 9,566     9,566      
Stock-based compensation expense 212,982     212,982      
Stock-based compensation expense recognized in relation to restructuring 84,042     84,042      
Comprehensive income (loss) 10,197       10,197    
Net income (loss) (78,896)         (78,896)  
Ending balance (in shares) at Mar. 31, 2023     234,495        
Ending balance at Mar. 31, 2023 5,674,946   $ 2 4,056,774 (28,409) 1,646,579  
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]              
Accounting standards update Accounting Standards Update 2023-08 [Member]            
Ending balance (in shares) at Dec. 31, 2023     242,048        
Ending balance at Dec. 31, 2023 $ 6,281,649 $ 561,489 $ 2 4,491,571 (30,270) 1,820,346 $ 561,489
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Issuance of common stock upon settlement of stock awards, net of shares withheld (in shares)     999        
Issuance of common stock upon settlement of stock awards, net of shares withheld $ (117,225)     (117,225)      
Issuance of common stock upon exercise of stock options, net of repurchases (in shares) 2,338   2,324        
Issuance of common stock upon exercise of stock options, net of repurchases $ 44,603     44,603      
Stock-based compensation expense 235,569     235,569      
Purchase of capped calls (104,110)     (104,110)      
Comprehensive income (loss) (7,226)       (7,226)    
Net income (loss) 1,176,245         1,176,245  
Ending balance (in shares) at Mar. 31, 2024     245,371        
Ending balance at Mar. 31, 2024 $ 8,070,994   $ 2 $ 4,550,408 $ (37,496) $ 3,558,080  
v3.24.1.u1
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Cash flows from operating activities    
Net income (loss) $ 1,176,245 $ (78,896)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:    
Depreciation and amortization 29,327 41,208
Stock-based compensation expense 224,504 198,860
Restructuring stock-based compensation expense 0 84,042
Deferred income taxes 214,361 (84,169)
Unrealized (gain) loss on foreign exchange (992) 8,428
Non-cash lease expense 2,793 12,215
Fair value gains on crypto assets borrowed and borrowings (2,944) (3,199)
Gains on crypto assets held as investments and operations (736,787) (84,685)
Realized loss on crypto futures contract 0 43,339
Crypto asset impairment expense (prior to ASU 2023-08) 0 28,935
Other operating activities, net (21,020) (18,327)
Net changes in operating assets and liabilities (474,002) 315,327
Net cash provided by operating activities 411,485 463,078
Cash flows from investing activities    
Fiat loans originated (416,405) (65,611)
Proceeds from repayment of fiat loans 254,600 31,779
Purchase of crypto assets held for investment (135) (53,223)
Sale of crypto assets held for investment 51,659 110,776
Settlement of crypto futures contract 0 (43,339)
Other investing activities, net (15,400) (6,462)
Net cash used in investing activities (125,681) (26,080)
Cash flows from financing activities    
Issuance of common stock upon exercise of stock options, net of repurchases 44,216 8,873
Taxes paid related to net share settlement of equity awards (117,225) (62,497)
Proceeds received under the ESPP 5,460 4,562
Customer custodial cash liabilities 645,938 528,959
Issuance of convertible senior notes, net 1,246,025 0
Purchase of capped calls (104,110) 0
Fiat received as collateral 340,296 3,117
Fiat received as collateral returned (132,879) (2,403)
Other financing activities 0 (20,482)
Net cash provided by financing activities 1,927,721 460,129
Net increase in cash, cash equivalents, and restricted cash 2,213,525 897,127
Effect of exchange rates on cash, cash equivalents, and restricted cash (21,186) 11,377
Cash, cash equivalents, and restricted cash, beginning of period 9,555,448 9,429,646
Cash, cash equivalents, and restricted cash, end of period 11,747,787 10,338,150
Supplemental disclosure of cash flow information    
Cash paid during the period for interest 0 74
Cash paid during the period for income taxes 5,528 5,322
Operating cash outflows for amounts included in the measurement of operating lease liabilities $ 3,140 $ 4,668
v3.24.1.u1
NATURE OF OPERATIONS
 3 Months Ended
Mar. 31, 2024
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”). 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”).
The Company provides a trusted platform that serves as a compliant gateway to the onchain economy and enables customers to engage in a wide variety of activities, including discovering, trading, staking, storing, spending, earning, and using their crypto assets in both proprietary and third-party product experiences enabled by access to decentralized applications. The Company offers (i) consumers their primary financial account for the cryptoeconomy, (ii) institutions a full-service prime brokerage platform with access to deep pools of liquidity across the crypto marketplace, and (iii) developers a suite of products granting access to the Company’s ecosystem.
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.
v3.24.1.u1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 3 Months Ended
Mar. 31, 2024
Accounting Policies [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of presentation and preparation
The accompanying Condensed Consolidated Financial Statements include the accounts of the Company and its subsidiaries – entities in which the Company holds, directly or indirectly, more than 50% of the voting rights, or where it exercises control. The Condensed Consolidated Financial Statements are unaudited but 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 adjustments, consisting only of normal, recurring adjustments, that are necessary for the fair presentation of the Company’s Financial Statements. Preparation of the Condensed Consolidated Financial Statements in accordance with GAAP requires management to make estimates and assumptions in the Condensed Consolidated Financial Statements and notes thereto. Certain prior period amounts in the Condensed Consolidated Financial Statements have been reclassified to conform to the current period’s presentation. The unaudited Condensed Consolidated Results of Operations for the three months ended March 31, 2024 are not necessarily indicative of the results to be expected for the full year or any other period and 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, 2023 filed with the Securities and Exchange Commission (the “SEC”) on February 15, 2024 (the “Annual Report”).
There were no changes to the Company’s most significant estimates and assumptions, 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.

Concentration of credit risk
The Company’s cash and cash equivalents, restricted cash, customer custodial funds, accounts receivable, loan receivables and deposits 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, restricted cash, and crypto assets at crypto asset trading venues, payment processors, and clearing brokers, and performs a regular assessment of these venues as part of its risk management process. As of March 31, 2024, the Company held $203.3 million at these venues, including $124.8 million in unrestricted cash, $63.6 million in crypto assets, and $14.9 million in restricted deposits. As of December 31, 2023, the Company held $93.5 million at these venues, including $88.8 million in unrestricted cash, an immaterial amount of crypto assets, and $4.7 million in restricted deposits.
The issuer of USDC reported that, as of March 31, 2024, 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 March 31, 2024 and December 31, 2023, the Company had five and three counterparties and four and three counterparties, respectively, who accounted for more than 10% of the Company’s recorded loan receivables and unrecorded loans receivable, respectively. As of both March 31, 2024 and December 31, 2023, the Company had two counterparties who accounted for more than 10% of the Company’s Accounts receivable, net. See Note 6. Collateralized Arrangements and Financing for details on collateralization of loan receivables.
During the three months ended March 31, 2024 and 2023, one counterparty accounted for more than 10% of total revenue in each period.
Crypto assets held
The Company holds crypto assets for investment and operating purposes, as well as borrowed crypto assets and crypto assets held as collateral.
Effective January 1, 2024, the Company adopted ASU No. 2023-08, Accounting for and Disclosure of Crypto Assets (“ASU 2023-08”) using a modified retrospective approach. Upon adoption, the Company recognized a fair value adjustment on crypto assets held of $739.5 million and established a deferred tax liability of $177.9 million, for a net cumulative-effect adjustment of $561.5 million increasing retained earnings.
As a result of the adoption of ASU 2023-08, the Company introduced four new categories of crypto assets held in the Condensed Consolidated Balance Sheets based on their nature. This updated presentation aligns with the requirements of ASU 2023-08 and describes the purpose of the various types of crypto assets held by the Company.
Crypto assets held for investment
Crypto assets held for investment are primarily held as long-term holdings. The Company does not engage in regular trading of these crypto assets. The Company may loan crypto assets held for investment through Prime Financing. See Note 6. Collateralized Arrangements and Financing for additional details on Prime Financing. Crypto assets held for investment are initially recorded at cost and
are subsequently remeasured at fair value on a specific identification basis at the end of each reporting period, with changes in fair value recognized in net income. Fair value is measured using quoted crypto asset prices at the time of measurement within the Company’s principal market. Fair value gains and losses on Crypto assets held for investment are recognized within Gains on crypto assets held for investment, net in the Condensed Consolidated Statements of Operations. Cash flows from crypto asset investment purchases and sales are recorded in Net cash used in investing activities in the Condensed Consolidated Statements of Cash Flows.
Crypto assets held for operations
The Company may receive crypto assets as a form of payment for transaction revenue, blockchain rewards, custodial fee revenue, and other subscriptions and services revenue which are recorded in Crypto assets held for operations when received. Crypto assets received as a form of payment are converted to cash nearly immediately or are used timely to fulfill corporate expenses. Crypto assets held for operations are initially recorded at the transaction price of the crypto assets at contract inception and are subsequently remeasured at fair value on a first in first out basis at the end of each reporting period, with changes in fair value recognized in net income. Fair value is measured using quoted crypto asset prices at the time of measurement within the Company’s principal market. Fair value gains and losses on Crypto assets held for operations are recorded in Gains on crypto assets held for operations, net in the Condensed Consolidated Statements of Operations. Cash flows from crypto assets held for operations are recorded as Net changes in operating assets and liabilities in the Condensed Consolidated Statements of Cash Flows. Crypto assets held for operations are recorded in Other current assets in the Condensed Consolidated Balance Sheets.
Crypto assets borrowed
Crypto assets borrowed represent crypto assets borrowed from third parties to facilitate Prime Financing. Prior to the adoption of ASU 2023-08, crypto assets borrowed were designated as fair value hedges, and accounted for as hybrid instruments, with a liability host contract that contained an embedded derivative based on the changes in fair value of the underlying crypto asset. Contemporaneously with the adoption of ASU 2023-08, the Company dedesignated $62.9 million of crypto assets borrowed that previously qualified as fair value hedges against the corresponding crypto asset borrowing. There was a net zero impact of the cumulative fair value hedge basis adjustments that were reversed and recorded in Transaction expense. As of December 31, 2023, the cumulative amount of fair value hedging adjustment was $3.9 million.
Post dedesignation and ASU 2023-08 adoption, crypto assets borrowed by the Company, that have not been loaned out, are recorded in Crypto assets borrowed in the Condensed Consolidated Balance Sheets. Crypto assets borrowed are initially recorded at cost and are subsequently remeasured at fair value using the average costing method at the end of each reporting period, with changes in fair value recognized in net income. Fair value is measured using quoted crypto asset prices at the time of measurement within the Company’s principal market. Fair value gains and losses on Crypto assets borrowed are recorded within Transaction expenses. See Note 6. Collateralized Arrangements and Financing for further details on Crypto assets borrowed and Note 21. Supplemental Disclosures of Cash Flow Information for details on cash flows from crypto assets borrowed included in the supplemental schedule of non-cash investing and financing activities.
Crypto assets held as collateral
For loans receivable, the Company requires borrowers to pledge collateral on loans offered under Prime Financing. Crypto assets held as collateral are initially recorded at cost if the Company has the right to sell, pledge or rehypothecate and are subsequently remeasured at fair value using the specific identification method at the end of each reporting period, with changes in fair value recognized in net income. Fair value is measured using quoted crypto asset prices at the time of measurement within the Company’s principal market. Fair value gains and losses on Crypto assets held as collateral are recorded
in Transaction expenses. See Note 6. Collateralized Arrangements and Financing for additional details on crypto assets borrowed and Note 21. Supplemental Disclosures of Cash Flow Information for details on cash flows from Crypto assets held as collateral included in the supplemental schedule of non-cash investing and financing activities.
The following table presents the effects of the changes in presentation in the Condensed Consolidated Balance Sheets (in thousands):
December 31, 2023
Previously Reported
Adjustment
As Adjusted
Crypto assets held(1)
$449,925 $(449,925)$— 
Crypto assets held for investment
— 330,610 330,610 
Crypto assets held for operations
— 74,103 74,103 
Crypto assets borrowed
— 45,212 45,212 
$449,925 $— $449,925 
_________________
(1)No crypto assets held as collateral met the recognition criteria as of December 31, 2023.
Recent accounting pronouncements
There have been no new developments to recently issued accounting standards, including the expected dates of adoption and estimated effects on the Company’s Consolidated Financial Statements and footnote disclosures, from those disclosed in the Annual Report.
v3.24.1.u1
RESTRUCTURING
 3 Months Ended
Mar. 31, 2024
Restructuring and Related Activities [Abstract]  
RESTRUCTURING 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 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, the Company recorded restructuring charges of $144.5 million, which included $84.0 million in stock-based compensation, $57.7 million in separation pay, and an immaterial amount of other personnel costs. There were no restructuring charges during the three months ended March 31, 2024.
v3.24.1.u1
ACQUISITIONS
 3 Months Ended
Mar. 31, 2024
Business Combination and Asset Acquisition [Abstract]  
ACQUISITIONS ACQUISITIONS
Information on acquisitions completed during the periods presented is set forth below. The impact of these acquisitions was not considered material to the Condensed Consolidated Financial Statements for the periods presented, and pro forma financial information has not been provided.
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 Topic 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 was primarily attributed to the assembled workforce, market presence, synergies, and time-to-market advantages. The Company finalized the fair value valuation analysis of assets acquired and liabilities assumed and as a result no measurement period adjustments were recorded.
The total consideration transferred in the acquisition was $96.8 million, consisting of the following (in thousands):
Cash$30,830 
Cash payable1,005 
Previously-held interest on acquisition date20,000 
Class A common stock of the Company44,995 
   Total purchase consideration$96,830 
Included in the purchase consideration was $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 recorded in the Condensed Consolidated Financial Statements as of the date of acquisition. The following table summarizes the fair values of assets acquired and liabilities assumed as of the date of acquisition (in thousands):
Goodwill$65,764 
Intangible assets, net21,100 
Other assets and liabilities, net9,966 
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 ValueUseful Life at Acquisition (in years)
Licenses$1,100 Indefinite
Customer relationships17,100 6
In-process research and development (“IPR&D”)2,900 N/A
Customer relationships are 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 incurred were $2.6 million and were recorded in General and administrative expense in the Condensed Consolidated Statements of Operations during the year ended December 31, 2023.
v3.24.1.u1
REVENUE
 3 Months Ended
Mar. 31, 2024
Revenue from Contract with Customer [Abstract]  
REVENUE REVENUE
The following table presents revenue of the Company disaggregated by revenue source (in thousands):
Three Months Ended March 31,
20242023
Net revenue
Transaction revenue
Consumer, net(1)
$935,212 $329,152 
Institutional, net85,392 22,311 
Other transaction revenue(1)
56,137 23,250 
Total transaction revenue1,076,741 374,713 
Subscription and services revenue
Stablecoin revenue197,317 198,898 
Blockchain rewards150,929 73,749 
Interest and finance fee income(2)
66,663 43,313 
Custodial fee revenue32,341 17,043 
Other subscription and services revenue(2)
63,686 28,682 
Total subscription and services revenue510,936 361,685 
Total net revenue1,587,677 736,398 
Other revenue
Corporate interest and other income49,893 36,131 
Total other revenue49,893 36,131 
Total revenue$1,637,570 $772,529 
__________________
(1)During the first quarter of 2024, the Company reclassified Base and payment-related revenue from consumer, net to other transaction revenue. Prior period amounts have been reclassified to conform to current period presentation.
(2)During the first quarter of 2024, the Company reclassified Prime Financing fees earned from other subscription and services revenue to interest income, and renamed interest income to interest and finance fee income. Prior period amounts have been reclassified to conform to current period presentation.
Revenue by geographic location
In the table below are the revenues disaggregated by geography, based on domicile of the customers, as applicable (in thousands):
Three Months Ended March 31,
20242023
United States$1,353,450 $686,769 
International(1)
284,120 85,760 
     Total revenue$1,637,570 $772,529 
__________________
(1)No other individual country accounted for more than 10% of total revenue.
v3.24.1.u1
COLLATERALIZED ARRANGEMENTS AND FINANCING
 3 Months Ended
Mar. 31, 2024
Receivables [Abstract]  
COLLATERALIZED ARRANGEMENTS AND FINANCING COLLATERALIZED ARRANGEMENTS AND FINANCING
Loans and related collateral
The Company may lend crypto assets borrowed, crypto assets held for investment, crypto assets held for operations, corporate cash, and corporate USDC to eligible institutional customers through Prime Financing. Prime Financing lending arrangements may have open ended or fixed terms, with the exception of trade finance, where the Company enables customers to instantly invest in crypto assets without pre-funding their trade, which transactions are typically settled in one to three days. Crypto asset and fiat loans are recorded in Loan receivables in the Condensed Consolidated Balance Sheets. USDC loaned to customers does not meet derecognition criteria under ASC 860, Transfers and Servicing (“ASC 860”) as the borrower has an obligation to return the same financial assets (USDC) back to the Company in order to release the collateral pledged for the loan. This constitutes a form of continuing involvement with the USDC transferred and therefore the Company maintains effective control over the USDC. USDC loaned remains recorded in corporate USDC in the Condensed Consolidated Balance Sheets.
The following table summarizes the Company’s Prime Financing lending arrangements (in thousands):
March 31,December 31,
20242023
Loan receivables
Trade finance receivables$122,817 $— 
Fiat loan receivables210,185 171,196 
Crypto asset loan receivables196,141 22,229 
Total loan receivables$529,143 $193,425 
Customer loans not meeting recognition criteria
USDC$268,345 $205,645 
Prime Financing loans are fully collateralized by a customer’s pledged crypto assets, USDC, or fiat, with collateral requirements ranging from 100% to 400% of the fair value of the loan.
The Company adheres to strict internal risk management and liquidation protocols for loan counterparty defaults, including restricting trading and withdrawals and liquidating assets in borrowers’ accounts as contractually permitted. If the value of the borrower’s eligible collateral falls below the required collateral requirement, the customer is obligated to deposit additional collateral up to the required collateral level. The Company continuously and systematically monitors the fair value of the related collateral assets pledged compared to the fair value of the related loan receivable, and requires additional collateral pursuant to the contractual terms of the loan agreements. Due to the collateral requirements the Company applies to its loans, the collateral maintenance process, and collateral being held on its own platform, the Company’s credit exposure is significantly limited and no allowance, write-offs or recoveries were recorded against loans receivable for the periods presented. The Company would recognize credit losses on these loans if there were a collateral shortfall and it is not reasonably expected that the borrower will replenish such a shortfall.
If the Company receives fiat collateral into a Coinbase controlled collateral wallet, the Company records the collateral in Cash and cash equivalents and a corresponding liability in Obligation to return collateral in the Condensed Consolidated Balance Sheets. If the Company receives USDC or crypto assets as collateral with contractual rights to sell, pledge, or rehypothecate the collateral, the Company records the collateral in corporate USDC or Crypto assets held as collateral, respectively, and a corresponding liability in Obligation to return collateral in the Condensed Consolidated Balance Sheets. Obligation to return collateral, if a crypto asset, is accounted for as a hybrid instrument, with a liability host contract that contains an embedded derivative based on the changes in the fair value of the underlying
crypto asset. The remeasurement of the crypto assets held as collateral and the obligation to return collateral are recorded net in Transaction expense.
If the Company does not obtain control or have the right to sell, pledge, or rehypothecate customer collateral, the collateral is recorded in Safeguarding customer crypto assets and Safeguarding customer crypto liabilities if the collateral is USDC or crypto assets and Customer custodial funds and Customer custodial cash obligations if the collateral is fiat, as the collateral is required to be held on the Company’s platform.
The Company’s Crypto assets held as collateral and Obligation to return collateral consisted of the following (in thousands, except units):
March 31, 2024December 31, 2023
UnitsFair ValueUnitsFair Value
Crypto assets held as collateral
Bitcoin(1)
1,495 $106,610 — $— 
Total held as collateral$106,610 $— 
Obligation to return collateral
FiatN/A$208,480 N/A$1,063 
Bitcoin1,495 106,610 — — 
Total obligation to return collateral
$315,090 $1,063 
Customer collateral pledged, not recognized
nm$1,578,643 nm$712,644 
__________________
nm - not meaningful
(1) The cost basis of bitcoin held as collateral as of March 31, 2024 was $75.4 million.
The following table summarizes the reconciliation of Crypto assets held as collateral for the three months ended March 31, 2024 (in thousands):
January 1, 2024
Cumulative Adjustment
Collateral Received
Collateral Returned
Gains(1)
Losses(1)
March 31, 2024
Crypto assets held as collateral$— $— $90,798 $(15,374)$31,186 $— $106,610 
__________________
(1)No cumulative realized gains or losses occurred during the period.
Borrowings and related collateral
To facilitate Prime Financing, the Company may borrow crypto assets from third parties and records the associated liability in Crypto asset borrowings in the Condensed Consolidated Balance Sheets. Crypto asset borrowings that have not been loaned out are recorded in Crypto assets borrowed. Crypto asset borrowings are accounted for as hybrid instruments, with a liability host contract that contains an embedded derivative based on the changes in the fair value of the underlying crypto asset. See Note 13. Derivatives for additional information. As of March 31, 2024 and December 31, 2023, the weighted average annual fees on these borrowings were 2.3% and 2.0%, respectively. See Note 13. Derivatives, for additional details regarding Crypto asset borrowings.
The following table summarizes the units, cost basis, and fair value of crypto assets borrowed (in thousands, except units) and the associated crypto asset borrowings:
March 31, 2024December 31, 2023
UnitsCost BasisFair ValueCarrying Value
Crypto assets borrowed
Bitcoin2,688 $112,099 $191,573 $36,368 
Ethereum1,122 2,214 4,093 3,720 
Solana55,575 5,198 11,247 3,516 
Other crypto assets(1)
nm14,247 24,435 1,608 
Total borrowed
$133,758 $231,348 $45,212 
Crypto asset borrowings
Bitcoin3,040 $128,417 $216,703 $50,679 
Ethereum5,601 10,655 20,420 7,059 
Solana55,575 5,198 11,247 3,513 
Other crypto assets(1)
nm14,248 24,435 1,729 
Total borrowings
$158,518 $272,805 $62,980 
__________________
nm - not meaningful
(1)Includes various other crypto assets balances, none of which individually represented more than 5% of total crypto assets borrowed and crypto asset borrowings.

The following table summarizes the reconciliation of Crypto assets borrowed for the three months ended March 31, 2024 (in thousands):
Additions
Dispositions
January 1, 2024
Crypto Borrowings Originated
Crypto Loans Repaid
Crypto Borrowings Repaid
Crypto Loans Originated
Gains(1)
Losses(1)
March 31, 2024
Crypto assets borrowed$45,212 $191,436 $285,254 $(77,451)$(301,168)$88,352 $(287)$231,348 
__________________
(1)No cumulative realized gains or losses occurred during the period.
Under the terms of the Company’s borrowing arrangements, the Company may be required to maintain a collateral to loan ratio and pledge fiat, USDC, or crypto assets for crypto asset borrowings. If the lender has the right to use the collateral, or if the collateral is fiat, the Company records the collateral pledged as a right to receive the collateral within Other current assets in the Condensed Consolidated Balance Sheets. USDC pledged as collateral to lenders, where the lender does not have the right to sell, pledge or rehypothecate, is not recorded as assets pledged as collateral as the pledged USDC does not meet the derecognition criteria under ASC 860. This collateral continues to be recorded in USDC in the Condensed Consolidated Balance Sheets.
The Company’s corporate assets pledged as collateral against crypto borrowings consisted of the following (in thousands, except units):
March 31, 2024December 31, 2023
UnitsFair ValueUnitsFair Value
Assets pledged as collateral
USDC
73,096,425 $73,096 51,879,705 $51,880 
FiatN/A— N/A1,191 
Total pledged as collateral
$73,096 $53,071 
Assets pledged as collateral not meeting derecognition criteria
USDC
221,827,262 $221,827 29,577,339 $29,577 
v3.24.1.u1
ACCOUNTS RECEIVABLE, NET
 3 Months Ended
Mar. 31, 2024
Receivables [Abstract]  
ACCOUNTS RECEIVABLE, NET ACCOUNTS RECEIVABLE, NET
Accounts receivable, net of allowance consisted of the following (in thousands):
March 31,December 31,
20242023
Stablecoin revenue receivable$75,499 $57,885 
Customer fee revenue receivable(1)
32,078 23,603 
In-transit customer receivables
88,472 42,562 
Other accounts receivable(1)
118,263 66,799 
Less: allowance for doubtful accounts receivable(33,955)(22,559)
Total accounts receivable, net$280,357 $168,290 
__________________
(1)Includes accounts receivable denominated in crypto assets. See Note 13. Derivatives for additional details
v3.24.1.u1
CRYPTO ASSETS HELD FOR INVESTMENT
 3 Months Ended
Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
CRYPTO ASSETS HELD FOR INVESTMENT CRYPTO ASSETS HELD FOR INVESTMENT
The following table summarizes the units, cost basis, and fair value of Crypto assets held for investment (in thousands, except units):
March 31, 2024December 31, 2023
UnitsCost BasisFair Value
Carrying Value(1)
Bitcoin9,183 $270,438 $654,655 $126,614 
Ethereum96,086 190,447 350,267 129,131 
Other crypto assets(2)
nm213,922 517,406 74,865 
Total held for investment$674,807 $1,522,328 $330,610 
__________________
nm - not meaningful
(1)Recorded at impaired cost as of December 31, 2023.
(2)Includes various other crypto assets balances, none of which individually represented more than 5% of total Crypto assets held for investment.
The following table summarizes the reconciliation of Crypto assets held for investment for the three months ended March 31, 2024 (in thousands):
Transfers
January 1, 2024
Cumulative
Adjustment(1)
Additions(2)
Sales
From Operating
Crypto Loans OriginatedCrypto Loans Repaid
Gains(3)
Losses(3)
March 31, 2024
Crypto assets held for investment$330,610 $717,373 $3,530 $(59,726)$1,972 $(123,081)$1,221 $655,688 $(5,259)$1,522,328 
__________________
(1)Fair value adjustment on Crypto assets held for investment upon the Company’s adoption of ASU 2023-08.
(2)Additions represent purchases of and staking rewards earned on Crypto assets held for investment.
(3)Includes $17.0 million of cumulative realized gains from sales that occurred during the period and no cumulative realized losses.
The Company has $264.3 million of assets subject to selling restrictions recorded in Crypto assets held for investment. The selling restrictions are time-based and lift between 2024 and 2029. Restrictions do not consist of any other obligations.
v3.24.1.u1
CUSTOMER ASSETS AND LIABILITIES
 3 Months Ended
Mar. 31, 2024
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):
March 31,December 31,
20242023
Customer custodial funds$5,201,906 $4,570,845 
Safeguarding customer crypto assets329,506,477 192,583,060 
Total customer assets$334,708,383 $197,153,905 
Customer custodial cash liabilities$5,201,906 $4,570,845 
Safeguarding customer crypto liabilities329,506,477 192,583,060 
Total customer liabilities$334,708,383 $197,153,905 

During the three months ended March 31, 2024 and 2023, no losses were incurred in connection with safeguarding customer crypto assets.
The following table sets forth the fair values of Safeguarding customer crypto assets as shown on the Condensed Consolidated Balance Sheets (in thousands, except percentages):
March 31, 2024December 31, 2023
Fair Value
Percentage of Total
Fair Value
Percentage of Total
Bitcoin$156,528,307 48 %$89,864,637 47 %
Ethereum62,873,141 19 %40,200,059 21 %
Solana24,304,478 7 %12,906,278 6 %
Other crypto assets(1)
85,800,551 26 %49,612,086 26 %
Total safeguarding customer crypto assets$329,506,477 100 %$192,583,060 100 %
__________________
(1)Includes various other crypto assets balances, none of which individually represented more than 5% of total Safeguarding customer crypto assets.

See Note 14. Fair Value Measurements, for additional details regarding the Safeguarding customer crypto assets and Safeguarding customer crypto liabilities.
v3.24.1.u1
OTHER CURRENT AND NON-CURRENT ASSETS
 3 Months Ended
Mar. 31, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
OTHER CURRENT AND NON-CURRENT ASSETS OTHER CURRENT AND NON-CURRENT ASSETS
Other current assets and other non-current assets consisted of the following (in thousands):    
March 31,December 31,
20242023
Other current assets
Crypto assets held for operations$150,630 $74,103 
Prepaid expenses98,004 79,552 
Assets pledged as collateral(1)
73,096 53,071 
Income tax receivable39,945 63,726 
Other17,862 16,191 
Total other current assets$379,537 $286,643 
Other non-current assets
Strategic investments
$346,902 $343,045 
Property and equipment, net193,056 192,550 
Intangible assets, net
79,755 86,422 
Lease right of use assets
10,164 12,737 
Deposits and other23,985 19,840 
Total other non-current assets$653,862 $654,594 
_______________
(1) See Note 6. Collateralized Arrangements and Financing for additional details.

Crypto assets held for operations
The following table summarizes the units, cost basis, and fair value of crypto assets held for operations (in thousands, except units):
March 31, 2024December 31, 2023
UnitsCost BasisFair Value
Carrying Value(1)
Bitcoin101 $5,548 $7,174 $7,243 
Ethereum15,006 44,799 54,565 15,775 
Solana144,193 25,967 29,128 10,275 
Other(2)
nm48,077 59,763 40,810 
Total held for operations$124,391 $150,630 $74,103 
__________________
nm - not meaningful
(1)Recorded at impaired cost as of December 31, 2023.
(2)Includes various other crypto assets balances, none of which individually represented more than 5% of total Crypto assets held for operations.
Measurement alternative investments
The changes in the carrying value of strategic investments accounted for under the measurement alternative are presented below (in thousands):
March 31,
December 31,
20242023
Carrying amount, beginning of period$330,346 $315,285 
Net additions(1)
4,527 60,979 
Upward adjustments43 62 
Previously held interest in ORDAM (see Note 4)— (20,000)
Impairments and downward adjustments(937)(25,980)
Carrying amount, end of period$333,979 $330,346 
__________________
(1)Net additions include additions from purchases and reductions due to exits of strategic investments.

Upward adjustments, impairments, and downward adjustments from remeasurement of investments are recorded in Other (income) expense, net in the Condensed Consolidated Statements of Operations. As of March 31, 2024, cumulative upward adjustments for investments held as of that date were $5.0 million and cumulative impairments and downward adjustments were $127.6 million. As of December 31, 2023, cumulative upward adjustments for investments held as of that date were $4.9 million and cumulative impairments and downward adjustments were $127.0 million.
v3.24.1.u1
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
 3 Months Ended
Mar. 31, 2024
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):
March 31,December 31,
20242023
Accrued payroll and payroll related$117,309 $224,237 
Other accrued expenses126,841 89,254 
Income taxes payable35,222 17,366 
Accounts payable26,825 39,294 
Lease liabilities8,820 10,902 
Other payables(1)
123,304 115,130 
Total accrued expenses and other current liabilities$438,321 $496,183 
__________________
(1)Includes other payables denominated in crypto assets. See Note 13. Derivatives for additional details.
v3.24.1.u1
LONG-TERM DEBT
 3 Months Ended
Mar. 31, 2024
Debt Disclosure [Abstract]  
LONG-TERM DEBT LONG-TERM DEBT
The components of long-term debt were as follows as of March 31, 2024 (in thousands, except percentages):
Long-term Debt
Effective Interest RatePrincipal AmountUnamortized Debt Discount and Issuance CostsNet Carrying Amount
0.50% 2026 Convertible Notes due on June 1, 2026
0.98 %$1,273,013 $(13,890)$1,259,123 
3.38% 2028 Senior Notes due on October 1, 2028
3.57 %1,000,000 (7,810)992,190 
0.25% 2030 Convertible Notes due on April 1, 2030
0.55 %1,265,000 (22,038)1,242,962 
3.63% 2031 Senior Notes due on October 1, 2031
3.77 %737,457 (6,718)730,739 
Total$4,275,470 $(50,456)$4,225,014 
The components of long-term debt were as follows as of December 31, 2023 (in thousands, except percentages):
Long-term Debt
Effective Interest RatePrincipal AmountUnamortized Debt Discount and Issuance CostsNet Carrying Amount
0.50% 2026 Convertible Notes due on June 1, 2026
0.98 %$1,273,013 $(15,378)$1,257,635 
3.38% 2028 Senior Notes due on October 1, 2028
3.57 %1,000,000 (8,218)991,782 
3.63% 2031 Senior Notes due on October 1, 2031
3.77 %737,457 (6,917)730,540 
Total$3,010,470 $(30,513)$2,979,957 
2030 Convertible Notes
In March 2024, the Company issued an aggregate principal amount of $1.3 billion of convertible senior notes due 2030 (the “2030 Convertible Notes”), which included the full exercise by the initial purchasers of their option to purchase up to an additional $165.0 million aggregate principal amount of the 2030 Convertible Notes, pursuant to an indenture, dated March 18, 2024 between the Company and U.S Bank Trust Company, National Association, as trustee (the “Indenture”). The 2030 Convertible Notes were offered and sold in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act.
The 2030 Convertible Notes are senior unsecured obligations of the Company and accrue interest of 0.25% per year payable semi-annually in arrears on April 1 and October 1 of each year, beginning on October 1, 2024. The 2030 Convertible Notes mature on April 1, 2030, unless earlier repurchased, redeemed or converted. The proceeds received of $1.2 billion, were net of a 1.5% original issue discount.
The 2030 Convertible Notes will be convertible into cash, shares of the Company’s Class A common stock, or a combination thereof, at the Company’s election at an initial conversion rate of 2.9981 shares of the Company’s Class A common stock per $1,000 principal amount of notes. This is equivalent to an initial conversion price of approximately $333.54 per share of the Company’s Class A common stock. The conversion rate and conversion price are subject to customary adjustments under certain circumstances in accordance with the terms of the Indenture.
The 2030 Convertible Notes will be convertible at the option of the holders after the calendar quarter ending on June 30, 2024, if the last reported sale price per share of Class A common stock exceeds 130% of the conversion price for each of at least 20 trading days, during the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter. Upon conversion, the Company may satisfy its conversion obligation by paying or delivering, as applicable, cash, shares of the Company’s Class A common stock or a combination of cash and shares of the
Company’s Class A common stock, at the Company’s election, based on the applicable conversion rate. In addition, if certain corporate events that constitute a make-whole fundamental change (as defined in the Indenture) occur, then the conversion rate will, in certain circumstances, be increased for a specified period of time. Additionally in the event of a corporate event constituting a fundamental change (as defined in the Indenture), holders of the 2030 Convertible Notes may require the Company to repurchase all or a portion of their 2030 Convertible Notes at a repurchase price equal to 100% of the principal amount of the 2030 Convertible Notes being repurchased, plus accrued and unpaid special interest or additional interest, if any, to, but excluding, the date of the fundamental change repurchase.
The Company accounted for the 2030 Convertible Notes wholly as debt because (1) the conversion features do not require bifurcation as a derivative under ASC 815 and (2) the 2030 Convertible Notes were not issued at a substantial premium.
Debt issuance costs related to the issuance of the 2030 Convertible Notes recognized were $3.2 million, and include commissions payable to the underwriters and third-party offering costs. As of March 31, 2024, the outstanding aggregate principal balance of the 2030 Convertible Notes and the related unamortized discounts were $1.3 billion and $22.0 million, respectively.
Capped calls
On May 18, 2021, in connection with the pricing of the convertible senior notes due in 2026 (the “2026 Convertible Notes”), on March 13, 2024, in connection with the pricing of the 2030 Convertible Notes, and on March 14, 2024, in connection with the full exercise by the initial purchasers of their option to purchase additional 2030 Convertible Notes, the Company entered into privately negotiated capped call transactions (the “2026 Capped Calls” and “2030 Capped Calls,” respectively, and “the Capped Calls” collectively) with certain financial institutions (the “2026 Option Counterparties” and “2030 Option Counterparties,” respectively and the “Option Counterparties” collectively) at a cost of $90.1 million and $104.1 million, respectively, in each case in exchange for the right to receive a predetermined amount of cash, shares of the Company’s Class A common stock, or a combination thereof, at the Company’s election. The Capped Calls cover, subject to customary adjustments, the number of shares of the Company’s Class A common stock initially underlying each of the 2026 Convertible Notes and 2030 Convertible Notes (collectively, the “Convertible Notes”), as applicable. The Capped Calls allow the Company to hedge the economic effect of the conversion options embedded in the Convertible Notes and purchase shares of its own Class A common stock at a specified strike price. By entering into the Capped Calls, the Company expects to reduce the potential dilution to its Class A common stock (or, in the event a conversion of the Convertible Notes is settled in cash, to reduce its cash payment obligation) in the event that at the time of conversion of the Convertible Notes its Class A common stock price exceeds the conversion price of the Convertible Notes. The 2026 Capped Calls have an initial strike price of approximately $370.45 per share of Class A common stock (the “2026 Initial Strike Price”) and an initial cap price of approximately $478.00 per share of Class A common stock (the “2026 Initial Cap Price”). The 2030 Capped Calls have an initial strike price of approximately $333.54 per share of Class A common stock (the “2030 Initial Strike Price” and, together with the 2026 Initial Strike Price, the “Initial Strike Prices”) and an initial cap price of approximately $503.46 per share of Class A common stock (the “2030 Initial Cap Price” and, together with the 2026 Initial Cap Price, the “Initial Cap Prices”). Upon expiration of the agreements underlying the Capped Calls, the Capped Calls will be automatically exercised. If the closing market price of the Class A common stock is above the applicable Initial Cap Price, the initial investments will be returned with a premium in either cash or shares at the Company’s election. If the closing market price of the Class A common stock is at or below the applicable Initial Strike Price, the Company will receive the number of shares specified i n the agreements.
Upon certain extraordinary events, nationalization, insolvency or delisting event, or additional disruption events, the Capped Calls are contractually structured to terminate. The Company has the contractual right to terminate the Capped Calls upon repurchase, redemption or conversion (in the case of conversion, prior to December 1, 2025 or October 1, 2029, for the 2026 Capped Calls and 2030 Capped Calls, respectively) of the underlying Convertible Notes, in certain circumstances.
The Capped Calls also include early termination provisions based on beneficial ownership positions of the counterparties. That is, if at any time the counterparty’s holdings exceed 8% beneficial ownership of the Company (as defined under Section 13 of the Exchange Act) and the counterparty is unable, after commercially reasonable efforts, to effect a transfer or assignment of all or a portion of the transaction such that an excess ownership position no longer exists, the counterparty may early terminate a portion of the Capped Calls, in which case the Company can settle in cash or shares of its Class A common stock.
v3.24.1.u1
DERIVATIVES
 3 Months Ended
Mar. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVES DERIVATIVES
The following outlines the Company’s derivatives, which were all embedded forward contracts as of March 31, 2024:
Location of Host Contract and Derivative on Balance SheetsDescription of Derivative
Accounts receivable, net
The Company provided services for which, under the contract, the counterparty pays a fixed amount in crypto assets in the future.
Crypto asset borrowings
The Company borrowed crypto assets that resulted in the obligation to deliver a fixed amount of crypto assets in the future. See Note 6. Collateralized Arrangements and Financing for additional information.
Obligation to return collateral
The Company receives crypto asset collateral that results in the obligation to return collateral received as a fixed amount of crypto assets. See Note 6. Collateralized Arrangements and Financing for additional information.
Accrued expenses and other current liabilities
The Company entered into arrangements that result in the obligation to deliver a fixed amount of crypto assets in the future.
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):
March 31,December 31,
20242023
Designated as hedges
Crypto asset borrowings(1)
$— $31,666 
Not designated as hedging instrument
Accounts receivable denominated in crypto assets21,362 16,335 
Crypto asset borrowings
158,518 12,503 
Obligation to return loan collateral75,424 — 
Other payables denominated in crypto assets33,012 20,092 
__________________
(1)    Prior to the adoption of ASU 2023-08, the Company applied hedge accounting using these derivative instruments in qualifying fair value hedges to hedge the fair value exposure of crypto asset prices for the crypto assets borrowed. As of January 1, 2024, the date of ASU 2023-08 adoption, these derivative instruments have been dedesignated.
The following tables summarize information on derivative assets and liabilities that are reflected on the Condensed Consolidated Balance Sheets, by accounting designation (in thousands):
Gross Derivative AssetsGross Derivative Liabilities
Not Designated as HedgesDesignated as HedgesTotal Derivative AssetsNot Designated as HedgesDesignated as HedgesTotal Derivative Liabilities
March 31, 2024
Accounts receivable denominated in crypto assets$41,263 $— $41,263 $— $— $— 
Crypto asset borrowings264 — 264 114,551 — 114,551 
Obligation to return loan collateral— — — 31,186 — 31,186 
Other payables denominated in crypto assets2,687 — 2,687 4,367 — 4,367 
Total fair value of derivative assets and liabilities$44,214 $— $44,214 $150,104 $— $150,104 
December 31, 2023
Accounts receivable denominated in crypto assets$28,065 $— $28,065 $— $— $— 
Crypto asset borrowings26 (25)1 5,290 13,522 18,812 
Other payables denominated in crypto assets2,511 — 2,511 3,101 — 3,101 
Total fair value of derivative assets and liabilities$30,602 $(25)$30,577 $8,391 $13,522 $21,913 
Impact of derivatives on the Condensed Consolidated Statements of Operations
Gains (losses) on derivative instruments recognized in the Condensed Consolidated Statements of Operations were as follows (in thousands):
Three Months Ended March 31, 2024Three Months Ended March 31, 2023
DerivativesHedged Items
Income Statement Impact(4)
DerivativesHedged ItemsIncome Statement Impact
Designated as hedging instrument
Crypto asset futures(1)
$— $— $— $(43,116)$48,491 $5,375 
Crypto asset borrowings(1)
— — — (91,714)48,600 (43,114)
Not designated as hedging instrument
Accounts receivable denominated in crypto assets(2)
13,795 — 13,795 42,924 — 42,924 
Crypto asset borrowings(3)
(95,914)— (95,914)— — — 
Obligation to return loan collateral(3)
(31,186)— (31,186)— — — 
Other payables denominated in crypto assets(1)
(1,721)— (1,721)439 — 439 
Other(1)
— — — (213)— (213)
Total$(115,026)$— $(115,026)$(91,680)$97,091 $5,411 
__________________
(1)Changes in fair value are recorded in Other operating expense (income), net in the Condensed Consolidated Statements of Operations.
(2)Changes in fair value are recorded in Other (income) expense, net or Other operating expense (income), net in the Condensed Consolidated Statements of Operations depending on the nature of the receivable.
(3)Changes in fair value are recorded in Transaction expense in the Condensed Consolidated Statements of Operations.
(4)Though the Company has dedesignated crypto assets borrowed that previously qualified as fair value hedges, the impact of derivatives is naturally offset, at least in part, in the Condensed Consolidated Statements of Operations by the impact of associated naturally offsetting positions. See Quantitative and Qualitative Information about Market Risk in Part I, Item 3 of this Quarterly Report on Form 10-Q for more information.
v3.24.1.u1
FAIR VALUE MEASUREMENTS
 3 Months Ended
Mar. 31, 2024
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):
March 31, 2024December 31, 2023
Level 1Level 2Level 1Level 2
Assets
Cash equivalents(1)
$3,037,792 $— $3,682,917 $— 
Customer custodial funds(2)
4,894,429 — 3,301,029 — 
Crypto asset loan receivables
— 196,141 — 22,229 
Crypto assets borrowed(3)
231,348 — 45,212 — 
Safeguarding customer crypto assets— 329,506,477 — 192,583,060 
Derivative assets(4)
— 44,214 — 30,577 
Crypto assets held for operations150,630 — 74,103 — 
Crypto assets held as collateral106,610 — — — 
Crypto assets held for investment1,522,328 — 330,610 — 
Total assets$9,943,137 $329,746,832 $7,433,871 $192,635,866 
Liabilities
Safeguarding customer crypto liabilities$— $329,506,477 $— $192,583,060 
Derivative liabilities(4)
— 150,104 — 21,913 
Obligation to return collateral106,610 — — — 
Total liabilities$106,610 $329,656,581 $— $192,604,973 
__________________
(1)Represents money market funds. Excludes $3.5 billion of corporate cash held in deposit at banks and $124.8 million held at venues, which were not measured and recorded at fair value as of March 31, 2024. Excludes $1.4 billion of corporate cash held in deposit at banks and $88.8 million held at venues, which were not measured and recorded at fair value as of December 31, 2023.
(2)Represents money market funds. Excludes customer custodial funds of $307.5 million and $1.3 billion held in deposit at financial institutions and not measured and recorded at fair value as of March 31, 2024 and December 31, 2023, respectively.
(3)Includes crypto assets held that were designated as hedged items in fair value hedges as of December 31, 2023 and excludes crypto assets of $404.7 million held at cost as of December 31, 2023.
(4)See Note 13. Derivatives for additional details.
Safeguarding customer crypto assets and liabilities represent the Company’s obligation to safeguard customer crypto assets and are based on Level 2 inputs. The Company has valued the assets and liabilities using quoted market prices for the underlying crypto assets.
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 and property and equipment are adjusted to fair value when an impairment charge is recognized. The Company’s crypto assets held, prior to the adoption of ASU 2023-08, and the Company’s strategic investments, are measured at fair value on a non-recurring basis. Fair value of crypto assets held are based predominantly on Level 1 inputs and fair value measurements for strategic investments are based predominantly on Level 3 inputs. The carrying value of the Company’s strategic investments is 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.
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, accounts receivable, fiat loan receivables, fiat collateral, and
customer custodial cash liabilities are not measured at fair value. The carrying values of these instruments approximate their fair values due to their liquid or short-term nature. If these financial instruments were recorded at fair value, they would be based on Level 1 inputs.
As of March 31, 2024, the estimated fair value of the 2026 Convertible Notes, 2030 Convertible Notes, and the 2028 and 2031 Senior Notes were $1.4 billion, $1.3 billion, and $1.5 billion, respectively. These are based on quoted prices in markets that are not active, which is considered a Level 2 valuation input.
v3.24.1.u1
STOCK-BASED COMPENSATION
 3 Months Ended
Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION
Stock options
A summary of options activity for the three months ended March 31, 2024 is as follows (in thousands, except per share and years data):
Options OutstandingWeighted Average Exercise Price per ShareWeighted Average Remaining Contractual Life (Years)Aggregate Intrinsic Value
Balance at January 1, 202428,697 $25.01 6.1$4,295,055 
Exercised(2,338)18.84 
Forfeited and cancelled(24)30.36 
Balance at March 31, 202426,335 $25.55 5.9$6,309,011 
Exercisable at March 31, 202420,201 $26.19 5.8$4,826,583 
Vested and expected to vest at March 31, 202420,211 $26.18 5.8$4,829,027 
During the three months ended March 31, 2024, the Company granted no stock options.
As of March 31, 2024, there was total unrecognized compensation cost of $56.0 million related to unvested stock options. These costs are expected to be recognized over a weighted-average period of approximately 2.3 years.
Restricted stock units
The Company grants restricted stock units (“RSUs”) that vest upon the satisfaction of a service-based condition. In general, the RSUs vest over a service period ranging from one to four years. Once vested, the RSUs are settled by delivery of Class A common stock.
A summary of RSU activity for the three months ended March 31, 2024 is as follows (in thousands, except per share data):
Number of SharesWeighted-Average Grant Date Fair Value Per Share
Balance at January 1, 20243,016 $108.07 
Granted5,139 142.75 
Vested(1,580)131.48 
Forfeited and cancelled(212)125.33 
Balance at March 31, 20246,363 $129.69 
As of March 31, 2024, there was total unrecognized compensation cost of $782.2 million related to unvested RSUs. These costs are expected to be recognized over a weighted-average period of approximately 1.2 years.
Performance restricted stock units
The Company also grants performance restricted stock units (“PRSUs”), which are subject to either (a) a market condition or (b) the achievement of performance goals.
A summary of PRSU activity for the three months ended March 31, 2024 is as follows (in thousands, except per share data):
Number of SharesWeighted-Average Grant Date Fair Value Per Share
Balance at January 1, 2024804 $55.42 
Vested(80)55.42 
Balance at March 31, 2024724 $55.42 
As of March 31, 2024, there was total unrecognized compensation cost of $13.0 million related to unvested PRSUs. These costs are expected to be recognized over a weighted-average period of approximately 1.7 years.
Restricted common stock
As part of the Company’s past 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 SharesWeighted-Average Grant Date Fair Value Per Share
Balance at January 1, 2024543 $114.22 
Vested(182)129.03 
Forfeited and cancelled(4)267.48 
Balance at March 31, 2024357 $104.97 
As of March 31, 2024, there was total unrecognized compensation cost of $24.3 million related to unvested restricted Class A common stock. These costs are expected to be recognized over a weighted-average period of approximately 1.3 years.
Stock-based compensation expense
The effects of stock-based compensation expense in the Condensed Consolidated Statements of Operations are as follows (in thousands):
Three Months Ended March 31,
20242023
Technology and development$139,830 $122,696 
Sales and marketing16,623 14,209 
General and administrative68,051 61,955 
Restructuring— 84,042 
Total$224,504 $282,902 
During the three months ended March 31, 2024 and 2023, $11.1 million and $14.1 million of stock-based compensation expense was recorded in capitalized software, which is included in Other non-current assets in the accompanying Condensed Consolidated Balance Sheets, respectively.
v3.24.1.u1
OTHER (INCOME) EXPENSE, NET
 3 Months Ended
Mar. 31, 2024
Other Income and Expenses [Abstract]  
OTHER (INCOME) EXPENSE, NET OTHER (INCOME) EXPENSE, NET
Other (income) expense, net consisted of the following (in thousands):
Three Months Ended March 31,
20242023
Foreign exchange losses, net$1,651 $13,878 
Strategic investment losses, net
849 6,319 
Gains on crypto asset loan receivables(1)
(25,526)— 
Gains on other financial instruments, net(13,186)— 
Other(9,393)68 
Total Other (income) expense, net$(45,605)$20,265 
__________________
(1)Represents unrealized gains on crypto asset loans made from the Company’s portfolio of crypto assets held as investment. See Note 6. Collateralized Arrangements and Financing for additional details.
v3.24.1.u1
INCOME TAXES
 3 Months Ended
Mar. 31, 2024
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
For the three months ended March 31, 2024, the Company calculated the tax provision using a discrete effective tax rate method. Historically, the tax provision was calculated for interim periods using an estimated annual effective tax rate, applied to year-to-date ordinary income. The Company’s estimated annual effective tax rate can fluctuate significantly based on the amount of estimated 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 significant impact on the effective tax rate. Therefore, the Company determined the discrete effective tax rate method is the appropriate method for calculating the interim tax provision.
The Company’s effective tax rate for the three months ended March 31, 2024 and 2023 was 18.2% and 52.4%, respectively. The effective tax rate of 18.2% for the three months ended March 31, 2024 was lower than the U.S. statutory rate of 21.0% primarily due to the Company’s deductible stock-based compensation and research and development credits.
As of March 31, 2024, the Company had a net deferred tax asset balance of $879.7 million, compared to $1.3 billion as of December 31, 2023. The decrease resulted from the deferred tax liability of $177.9 million established upon the adoption of ASU 2023-08 and the deferred tax provision of $214.6 million recorded on pretax earnings and other comprehensive income during the quarter.
As of December 31, 2023, the Company had a valuation allowance of $8.7 million recorded against its deferred capital loss tax asset balance of $207.6 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 March 31, 2024, because crypto assets appreciation during the quarter provided more gains to offset losses, management determined that there is sufficient positive evidence to conclude that it is more likely than not that capital loss tax assets are realizable, resulting in a valuation allowance release of $8.7 million for the quarter.
v3.24.1.u1
NET INCOME (LOSS) PER SHARE
 3 Months Ended
Mar. 31, 2024
Earnings Per Share [Abstract]  
NET INCOME (LOSS) PER SHARE NET INCOME (LOSS) PER SHARE
The computation of Net income (loss) per share is as follows (in thousands, except per share amounts):
Three Months Ended March 31,
20242023
Basic Net income (loss) per share:
Numerator
Net income (loss)$1,176,245 $(78,896)
Less: Income allocated to participating securities(766)— 
Net income (loss) attributable to common stockholders, basic$1,175,479 $(78,896)
Denominator
Weighted-average shares of common stock used to compute Net income (loss) per share attributable to common stockholders, basic242,793 231,489 
Net income (loss) per share attributable to common stockholders, basic$4.84 $(0.34)
Diluted Net income (loss) per share:
Numerator
Net income (loss)$1,176,245 $(78,896)
Less: Income allocated to participating securities(697)— 
Add: Interest on convertible notes, net of tax2,531 — 
Net income (loss) attributable to common stockholders, diluted
$1,178,079 $(78,896)
Denominator
Weighted-average shares of common stock used to compute Net income (loss) per share attributable to common stockholders, basic242,793 231,489 
Weighted-average effect of potentially dilutive securities:
Stock options18,534 — 
Convertible notes4,145 — 
RSUs2,164 — 
Restricted common stock309 — 
Weighted-average shares of common stock used to compute Net income (loss) per share attributable to common stockholders, diluted267,945 231,489 
Net income (loss) per share attributable to common stockholders, diluted$4.40 $(0.34)
Certain shares of the Company’s restricted Class A common stock granted as consideration in past 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):
March 31,
2024 2023
Stock options6,671 31,274 
ESPP733 822 
PRSUs322 — 
RSUs292 10,592 
Restricted common stock242 1,004 
Convertible notes— 3,880 
Contingent consideration— 76 
Total8,260 47,648 
v3.24.1.u1
COMMITMENTS AND CONTINGENCIES
 3 Months Ended
Mar. 31, 2024
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 filed. The 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 (the “District Court”) against the Company alleging claims under Sections 5, 15(a)(1) and 29(b) of 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, including alleging claims under Sections 5, 12(a)(1) and 15 of the Securities Act and violations of certain New Jersey state statutes. Among other relief requested, the plaintiffs sought injunctive relief, unspecified damages, attorneys’ fees and costs. On February 1, 2023, the District 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. Oral argument took place on February 1, 2024 and on April 5, 2024, the Court of Appeals issued a Summary Order affirming the District Court’s dismissal order with respect to the claims alleging violations of the Exchange Act, and reversing the District Court’s dismissal order with respect to the claims alleging violations of the Securities Act and violations of the state statutes. 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 customer 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. Trial took place in November 2023 and post-trial briefing and argument was completed on March 5, 2024 and March 22, 2024, respectively. A settlement offer was made and rejected in November 2023. Based on the nature of the proceedings in this case, the outcome of this matter remains uncertain and the Company cannot reasonably 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 District Court 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 took place on January 17, 2024. On March 27, 2024, the District Court denied in part the Company and Coinbase, Inc.’s motion for judgment on the pleadings with respect to the SEC’s claims that Coinbase, Inc. has operated as an unregistered securities exchange, broker, and clearing agency and has engaged in an unregistered offer and sale of securities through the Company’s staking program. The District Court dismissed the SEC’s claim that Coinbase, Inc. acts as an unregistered broker through its wallet service. Subsequently, on April 12, 2024, the Company and Coinbase, Inc. filed a motion with the District Court seeking certification of an interlocutory appeal to the Court of Appeals. 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.
v3.24.1.u1
RELATED PARTY TRANSACTIONS
 3 Months Ended
Mar. 31, 2024
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 $6.9 million and $3.1 million for the three months ended March 31, 2024 and 2023, respectively. As of March 31, 2024 and December 31, 2023, accounts receivable from related party customers were $4.2 million and $3.4 million, respectively.
Customer assets and liabilities
Safeguarding customer crypto assets and safeguarding customer crypto liabilities for related parties as of March 31, 2024 and December 31, 2023 were $13.0 billion and $8.8 billion, respectively. Customer custodial funds and Customer custodial cash liabilities for related parties as of March 31, 2024 and December 31, 2023 were $4.5 million and $348.0 million, respectively.
Other assets
As of March 31, 2024 and December 31, 2023, the Company made strategic investments of an aggregate of $0.1 million and $4.0 million, respectively, in investees in which certain related parties of the Company held an interest over 10%.
Expenses and accounts payable
During the three months ended March 31, 2024 and 2023, the Company incurred $1.1 million and an immaterial amount, respectively, for professional and consulting services provided by entities affiliated with related parties. As of March 31, 2024 and December 31, 2023, accounts payable to related party parties were $1.3 million and an immaterial amount, respectively.
v3.24.1.u1
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
 3 Months Ended
Mar. 31, 2024
Supplemental Cash Flow Elements [Abstract]  
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Changes in operating assets and liabilities affecting cash were as follows (in thousands):
Three Months Ended March 31,
20242023
USDC$(299,507)$497,303 
Accounts receivable(108,802)(67,126)
Deposits in transit(21,260)(15,262)
Income taxes, net41,613 (7,608)
Other current and non-current assets(3,856)(14,892)
Other current and non-current liabilities(82,190)(77,088)
Net changes in operating assets and liabilities$(474,002)$315,327 
Reconciliation of cash, cash equivalents, and restricted cash (in thousands):
Three Months Ended March 31,
20242023
Cash and cash equivalents$6,711,400 $5,018,409 
Restricted cash33,499 26,712 
Customer custodial cash5,002,888 5,293,029 
Total cash, cash equivalents, and restricted cash$11,747,787 $10,338,150 
Supplemental schedule of non-cash investing and financing activities were as follows (in thousands):
Three Months Ended March 31,
20242023
Crypto assets borrowed$191,436 $170,599 
Crypto assets borrowed repaid with crypto assets77,451 200,151 
Crypto asset loans originated
424,248 — 
Crypto asset loans repaid
286,475 — 
Non-cash assets received as collateral90,798 19,116 
Non-cash assets received as collateral returned15,374 45,990 
Non-cash assets pledged as collateral42,020 30,774 
Non-cash assets pledged as collateral returned20,804 10,743 
Non-cash consideration paid for business combinations— 51,494 
Realized gains on crypto assets held for investment— 48,491 
Cumulative-effect adjustment due to the adoption of ASU 2023-08561,489 — 
v3.24.1.u1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Pay vs Performance Disclosure    
Net income (loss) $ 1,176,245 $ (78,896)
v3.24.1.u1
Insider Trading Arrangements
 3 Months Ended
Mar. 31, 2024
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
Jennifer Jones [Member]  
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement
On February 29, 2024, Jennifer Jones, the Company’s Chief Accounting Officer, entered into a Rule 10b5-1 Plan (the “Jones Plan”) providing for the potential sale of up to 47,509 shares of Class A common stock owned by Ms. Jones, 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 Class A common stock, so long as the market price of the Class A common stock satisfies certain threshold prices specified in the Jones Plan or, in certain circumstances, at the market price, between an estimated start date of May 30, 2024 and February 28, 2025, or earlier, upon the completion of all transactions subject to the trading arrangements specified in the Jones Plan or the occurrence of certain events set forth therein. The Jones 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 Jones 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.
Name Jennifer Jones
Title Chief Accounting Officer
Rule 10b5-1 Arrangement Adopted true
Adoption Date February 29, 2024
Arrangement Duration 274 days
Aggregate Available 47,509
Frederick Ernest Ehrsam III [Member]  
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement
On March 1, 2024, 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 614,032 shares of 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 satisfies certain threshold prices specified in the Ehrsam Plan, between an estimated start date of June 3, 2024 and December 6, 2024, or earlier, upon the completion of all transactions subject to the trading arrangements specified in the Ehrsam Plan or the occurrence of certain events set forth therein.
Name Frederick Ernest Ehrsam III
Title member of the Company’s board of directors
Rule 10b5-1 Arrangement Adopted true
Adoption Date March 1, 2024
Arrangement Duration 186 days
Aggregate Available 614,032
Frederick Wilson [Member]  
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement
On February 24, 2024, Frederick Wilson, a member of the Company’s board of directors, entered into a Rule 10b5-1 Plan (the “Wilson Plan”) providing for the potential sale of up to 95,539 shares of Class A common stock owned by the Frederick & Joanne Wilson 2012 DE Trust, of which Mr. Wilson’s spouse is grantor, so long as the market price of the Class A common stock satisfies certain threshold prices specified in the Wilson Plan, between an estimated start date of May 23, 2024 and May 29, 2026, or earlier, upon the completion of all transactions subject to the trading arrangements specified in the Wilson Plan or the occurrence of certain events set forth therein.
Name Frederick Wilson
Title member of the Company’s board of directors
Rule 10b5-1 Arrangement Adopted true
Adoption Date February 24, 2024
Arrangement Duration 736 days
Aggregate Available 95,539
Andreessen Horowitz Funds [Member]  
Trading Arrangements, by Individual  
Material Terms of Trading Arrangement
On February 23, 2024, Andreessen Horowitz Fund Ill, L.P., Andreessen Horowitz Fund Ill-A, L.P., Andreessen Horowitz Fund III-B, L.P., Andreessen Horowitz Fund III-Q, L.P., AH Parallel Fund III, L.P., AH Parallel Fund Ill-A, L.P., AH Parallel Fund III-B, L.P., AH Parallel Fund III-Q, L.P., Andreessen Horowitz LSV Fund I, L.P., Andreessen Horowitz LSV Fund I-B, L.P., and Andreessen Horowitz LSV Fund I-Q, L.P. (collectively, the “Funds”), each of which is an affiliate of Marc Andreessen, a member of the Company’s board of directors, entered into a modification of a Rule 10b5-1 Plan adopted on November 29, 2023 (the “Prior a16z Plan” and the Prior a16z Plan, as so modified, the “New a16z Plan”) providing for the potential distribution of up to an aggregate of 14,018,115 shares of Class A common stock owned by the Funds to the limited partners of the Funds, in order to amend certain minimum thresholds applicable to the market price of the Class A common stock at which distributions would be conducted under the New a16z Plan during the period beginning on March 25, 2024 and ending on May 26, 2024, such earlier date as the distribution of all shares specified in the New a16z Plan was completed or the occurrence of certain events set forth therein. Under Rule 10b5-1, the modification of the Prior a16z Plan was deemed to be a termination of an existing plan and an adoption of a new plan. On March 25, 2024, the distribution of all shares specified in the New a16z Plan was completed.
Name Andreessen Horowitz Fund
Title member of the Company’s board of directors
Rule 10b5-1 Arrangement Adopted true
Adoption Date February 23, 2024
Arrangement Duration 62 days
Aggregate Available 14,018,115
v3.24.1.u1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
 3 Months Ended
Mar. 31, 2024
Accounting Policies [Abstract]  
Basis of presentation and preparation
Basis of presentation and preparation
The accompanying Condensed Consolidated Financial Statements include the accounts of the Company and its subsidiaries – entities in which the Company holds, directly or indirectly, more than 50% of the voting rights, or where it exercises control. The Condensed Consolidated Financial Statements are unaudited but 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 adjustments, consisting only of normal, recurring adjustments, that are necessary for the fair presentation of the Company’s Financial Statements. Preparation of the Condensed Consolidated Financial Statements in accordance with GAAP requires management to make estimates and assumptions in the Condensed Consolidated Financial Statements and notes thereto. Certain prior period amounts in the Condensed Consolidated Financial Statements have been reclassified to conform to the current period’s presentation. The unaudited Condensed Consolidated Results of Operations for the three months ended March 31, 2024 are not necessarily indicative of the results to be expected for the full year or any other period and 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, 2023 filed with the Securities and Exchange Commission (the “SEC”) on February 15, 2024 (the “Annual Report”).
There were no changes to the Company’s most significant estimates and assumptions, 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.
Concentration of credit risk
Concentration of credit risk
The Company’s cash and cash equivalents, restricted cash, customer custodial funds, accounts receivable, loan receivables and deposits 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, restricted cash, and crypto assets at crypto asset trading venues, payment processors, and clearing brokers, and performs a regular assessment of these venues as part of its risk management process. As of March 31, 2024, the Company held $203.3 million at these venues, including $124.8 million in unrestricted cash, $63.6 million in crypto assets, and $14.9 million in restricted deposits. As of December 31, 2023, the Company held $93.5 million at these venues, including $88.8 million in unrestricted cash, an immaterial amount of crypto assets, and $4.7 million in restricted deposits.
The issuer of USDC reported that, as of March 31, 2024, 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 March 31, 2024 and December 31, 2023, the Company had five and three counterparties and four and three counterparties, respectively, who accounted for more than 10% of the Company’s recorded loan receivables and unrecorded loans receivable, respectively. As of both March 31, 2024 and December 31, 2023, the Company had two counterparties who accounted for more than 10% of the Company’s Accounts receivable, net. See Note 6. Collateralized Arrangements and Financing for details on collateralization of loan receivables.
During the three months ended March 31, 2024 and 2023, one counterparty accounted for more than 10% of total revenue in each period.
Crypto assets held
Crypto assets held
The Company holds crypto assets for investment and operating purposes, as well as borrowed crypto assets and crypto assets held as collateral.
Effective January 1, 2024, the Company adopted ASU No. 2023-08, Accounting for and Disclosure of Crypto Assets (“ASU 2023-08”) using a modified retrospective approach. Upon adoption, the Company recognized a fair value adjustment on crypto assets held of $739.5 million and established a deferred tax liability of $177.9 million, for a net cumulative-effect adjustment of $561.5 million increasing retained earnings.
As a result of the adoption of ASU 2023-08, the Company introduced four new categories of crypto assets held in the Condensed Consolidated Balance Sheets based on their nature. This updated presentation aligns with the requirements of ASU 2023-08 and describes the purpose of the various types of crypto assets held by the Company.
Crypto assets held for investment
Crypto assets held for investment are primarily held as long-term holdings. The Company does not engage in regular trading of these crypto assets. The Company may loan crypto assets held for investment through Prime Financing. See Note 6. Collateralized Arrangements and Financing for additional details on Prime Financing. Crypto assets held for investment are initially recorded at cost and
are subsequently remeasured at fair value on a specific identification basis at the end of each reporting period, with changes in fair value recognized in net income. Fair value is measured using quoted crypto asset prices at the time of measurement within the Company’s principal market. Fair value gains and losses on Crypto assets held for investment are recognized within Gains on crypto assets held for investment, net in the Condensed Consolidated Statements of Operations. Cash flows from crypto asset investment purchases and sales are recorded in Net cash used in investing activities in the Condensed Consolidated Statements of Cash Flows.
Crypto assets held for operations
The Company may receive crypto assets as a form of payment for transaction revenue, blockchain rewards, custodial fee revenue, and other subscriptions and services revenue which are recorded in Crypto assets held for operations when received. Crypto assets received as a form of payment are converted to cash nearly immediately or are used timely to fulfill corporate expenses. Crypto assets held for operations are initially recorded at the transaction price of the crypto assets at contract inception and are subsequently remeasured at fair value on a first in first out basis at the end of each reporting period, with changes in fair value recognized in net income. Fair value is measured using quoted crypto asset prices at the time of measurement within the Company’s principal market. Fair value gains and losses on Crypto assets held for operations are recorded in Gains on crypto assets held for operations, net in the Condensed Consolidated Statements of Operations. Cash flows from crypto assets held for operations are recorded as Net changes in operating assets and liabilities in the Condensed Consolidated Statements of Cash Flows. Crypto assets held for operations are recorded in Other current assets in the Condensed Consolidated Balance Sheets.
Crypto assets borrowed
Crypto assets borrowed represent crypto assets borrowed from third parties to facilitate Prime Financing. Prior to the adoption of ASU 2023-08, crypto assets borrowed were designated as fair value hedges, and accounted for as hybrid instruments, with a liability host contract that contained an embedded derivative based on the changes in fair value of the underlying crypto asset. Contemporaneously with the adoption of ASU 2023-08, the Company dedesignated $62.9 million of crypto assets borrowed that previously qualified as fair value hedges against the corresponding crypto asset borrowing. There was a net zero impact of the cumulative fair value hedge basis adjustments that were reversed and recorded in Transaction expense. As of December 31, 2023, the cumulative amount of fair value hedging adjustment was $3.9 million.
Post dedesignation and ASU 2023-08 adoption, crypto assets borrowed by the Company, that have not been loaned out, are recorded in Crypto assets borrowed in the Condensed Consolidated Balance Sheets. Crypto assets borrowed are initially recorded at cost and are subsequently remeasured at fair value using the average costing method at the end of each reporting period, with changes in fair value recognized in net income. Fair value is measured using quoted crypto asset prices at the time of measurement within the Company’s principal market. Fair value gains and losses on Crypto assets borrowed are recorded within Transaction expenses. See Note 6. Collateralized Arrangements and Financing for further details on Crypto assets borrowed and Note 21. Supplemental Disclosures of Cash Flow Information for details on cash flows from crypto assets borrowed included in the supplemental schedule of non-cash investing and financing activities.
Crypto assets held as collateral
For loans receivable, the Company requires borrowers to pledge collateral on loans offered under Prime Financing. Crypto assets held as collateral are initially recorded at cost if the Company has the right to sell, pledge or rehypothecate and are subsequently remeasured at fair value using the specific identification method at the end of each reporting period, with changes in fair value recognized in net income. Fair value is measured using quoted crypto asset prices at the time of measurement within the Company’s principal market. Fair value gains and losses on Crypto assets held as collateral are recorded
in Transaction expenses. See Note 6. Collateralized Arrangements and Financing for additional details on crypto assets borrowed and Note 21. Supplemental Disclosures of Cash Flow Information for details on cash flows from Crypto assets held as collateral included in the supplemental schedule of non-cash investing and financing activities.
The following table presents the effects of the changes in presentation in the Condensed Consolidated Balance Sheets (in thousands):
December 31, 2023
Previously Reported
Adjustment
As Adjusted
Crypto assets held(1)
$449,925 $(449,925)$— 
Crypto assets held for investment
— 330,610 330,610 
Crypto assets held for operations
— 74,103 74,103 
Crypto assets borrowed
— 45,212 45,212 
$449,925 $— $449,925 
_________________
(1)No crypto assets held as collateral met the recognition criteria as of December 31, 2023.
Recent accounting pronouncements
Recent accounting pronouncements
There have been no new developments to recently issued accounting standards, including the expected dates of adoption and estimated effects on the Company’s Consolidated Financial Statements and footnote disclosures, from those disclosed in the Annual Report.
v3.24.1.u1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 3 Months Ended
Mar. 31, 2024
Accounting Policies [Abstract]  
Accounting standards update and change in accounting principle
The following table presents the effects of the changes in presentation in the Condensed Consolidated Balance Sheets (in thousands):
December 31, 2023
Previously Reported
Adjustment
As Adjusted
Crypto assets held(1)
$449,925 $(449,925)$— 
Crypto assets held for investment
— 330,610 330,610 
Crypto assets held for operations
— 74,103 74,103 
Crypto assets borrowed
— 45,212 45,212 
$449,925 $— $449,925 
_________________
(1)No crypto assets held as collateral met the recognition criteria as of December 31, 2023.
v3.24.1.u1
ACQUISITIONS (Tables)
 3 Months Ended
Mar. 31, 2024
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 payable1,005 
Previously-held interest on acquisition date20,000 
Class A common stock of the Company44,995 
   Total purchase consideration$96,830 
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 recorded in the Condensed Consolidated Financial Statements as of the date of acquisition. The following table summarizes the fair values of assets acquired and liabilities assumed as of the date of acquisition (in thousands):
Goodwill$65,764 
Intangible assets, net21,100 
Other assets and liabilities, net9,966 
Net assets acquired$96,830 
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 ValueUseful Life at Acquisition (in years)
Licenses$1,100 Indefinite
Customer relationships17,100 6
In-process research and development (“IPR&D”)2,900 N/A
v3.24.1.u1
REVENUE (Tables)
 3 Months Ended
Mar. 31, 2024
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 March 31,
20242023
Net revenue
Transaction revenue
Consumer, net(1)
$935,212 $329,152 
Institutional, net85,392 22,311 
Other transaction revenue(1)
56,137 23,250 
Total transaction revenue1,076,741 374,713 
Subscription and services revenue
Stablecoin revenue197,317 198,898 
Blockchain rewards150,929 73,749 
Interest and finance fee income(2)
66,663 43,313 
Custodial fee revenue32,341 17,043 
Other subscription and services revenue(2)
63,686 28,682 
Total subscription and services revenue510,936 361,685 
Total net revenue1,587,677 736,398 
Other revenue
Corporate interest and other income49,893 36,131 
Total other revenue49,893 36,131 
Total revenue$1,637,570 $772,529 
__________________
(1)During the first quarter of 2024, the Company reclassified Base and payment-related revenue from consumer, net to other transaction revenue. Prior period amounts have been reclassified to conform to current period presentation.
(2)During the first quarter of 2024, the Company reclassified Prime Financing fees earned from other subscription and services revenue to interest income, and renamed interest income to interest and finance fee income. Prior period amounts have been reclassified to conform to current period presentation.
Schedule of revenues disaggregated by geography
In the table below are the revenues disaggregated by geography, based on domicile of the customers, as applicable (in thousands):
Three Months Ended March 31,
20242023
United States$1,353,450 $686,769 
International(1)
284,120 85,760 
     Total revenue$1,637,570 $772,529 
__________________
(1)No other individual country accounted for more than 10% of total revenue.
v3.24.1.u1
COLLATERALIZED ARRANGEMENTS AND FINANCING (Tables)
 3 Months Ended
Mar. 31, 2024
Receivables [Abstract]  
Schedule of loans and financing receivables
The following table summarizes the Company’s Prime Financing lending arrangements (in thousands):
March 31,December 31,
20242023
Loan receivables
Trade finance receivables$122,817 $— 
Fiat loan receivables210,185 171,196 
Crypto asset loan receivables196,141 22,229 
Total loan receivables$529,143 $193,425 
Customer loans not meeting recognition criteria
USDC$268,345 $205,645 
Crypto asset, holding
The Company’s Crypto assets held as collateral and Obligation to return collateral consisted of the following (in thousands, except units):
March 31, 2024December 31, 2023
UnitsFair ValueUnitsFair Value
Crypto assets held as collateral
Bitcoin(1)
1,495 $106,610 — $— 
Total held as collateral$106,610 $— 
Obligation to return collateral
FiatN/A$208,480 N/A$1,063 
Bitcoin1,495 106,610 — — 
Total obligation to return collateral
$315,090 $1,063 
Customer collateral pledged, not recognized
nm$1,578,643 nm$712,644 
__________________
nm - not meaningful
(1) The cost basis of bitcoin held as collateral as of March 31, 2024 was $75.4 million.
The following table summarizes the units, cost basis, and fair value of crypto assets borrowed (in thousands, except units) and the associated crypto asset borrowings:
March 31, 2024December 31, 2023
UnitsCost BasisFair ValueCarrying Value
Crypto assets borrowed
Bitcoin2,688 $112,099 $191,573 $36,368 
Ethereum1,122 2,214 4,093 3,720 
Solana55,575 5,198 11,247 3,516 
Other crypto assets(1)
nm14,247 24,435 1,608 
Total borrowed
$133,758 $231,348 $45,212 
Crypto asset borrowings
Bitcoin3,040 $128,417 $216,703 $50,679 
Ethereum5,601 10,655 20,420 7,059 
Solana55,575 5,198 11,247 3,513 
Other crypto assets(1)
nm14,248 24,435 1,729 
Total borrowings
$158,518 $272,805 $62,980 
__________________
nm - not meaningful
(1)Includes various other crypto assets balances, none of which individually represented more than 5% of total crypto assets borrowed and crypto asset borrowings.
The following table summarizes the units, cost basis, and fair value of Crypto assets held for investment (in thousands, except units):
March 31, 2024December 31, 2023
UnitsCost BasisFair Value
Carrying Value(1)
Bitcoin9,183 $270,438 $654,655 $126,614 
Ethereum96,086 190,447 350,267 129,131 
Other crypto assets(2)
nm213,922 517,406 74,865 
Total held for investment$674,807 $1,522,328 $330,610 
__________________
nm - not meaningful
(1)Recorded at impaired cost as of December 31, 2023.
(2)Includes various other crypto assets balances, none of which individually represented more than 5% of total Crypto assets held for investment.
Crypto asset activity
The following table summarizes the reconciliation of Crypto assets held as collateral for the three months ended March 31, 2024 (in thousands):
January 1, 2024
Cumulative Adjustment
Collateral Received
Collateral Returned
Gains(1)
Losses(1)
March 31, 2024
Crypto assets held as collateral$— $— $90,798 $(15,374)$31,186 $— $106,610 
__________________
(1)No cumulative realized gains or losses occurred during the period.
The following table summarizes the reconciliation of Crypto assets borrowed for the three months ended March 31, 2024 (in thousands):
Additions
Dispositions
January 1, 2024
Crypto Borrowings Originated
Crypto Loans Repaid
Crypto Borrowings Repaid
Crypto Loans Originated
Gains(1)
Losses(1)
March 31, 2024
Crypto assets borrowed$45,212 $191,436 $285,254 $(77,451)$(301,168)$88,352 $(287)$231,348 
__________________
(1)No cumulative realized gains or losses occurred during the period.
The following table summarizes the reconciliation of Crypto assets held for investment for the three months ended March 31, 2024 (in thousands):
Transfers
January 1, 2024
Cumulative
Adjustment(1)
Additions(2)
Sales
From Operating
Crypto Loans OriginatedCrypto Loans Repaid
Gains(3)
Losses(3)
March 31, 2024
Crypto assets held for investment$330,610 $717,373 $3,530 $(59,726)$1,972 $(123,081)$1,221 $655,688 $(5,259)$1,522,328 
__________________
(1)Fair value adjustment on Crypto assets held for investment upon the Company’s adoption of ASU 2023-08.
(2)Additions represent purchases of and staking rewards earned on Crypto assets held for investment.
(3)Includes $17.0 million of cumulative realized gains from sales that occurred during the period and no cumulative realized losses.
The following table summarizes the units, cost basis, and fair value of crypto assets held for operations (in thousands, except units):
March 31, 2024December 31, 2023
UnitsCost BasisFair Value
Carrying Value(1)
Bitcoin101 $5,548 $7,174 $7,243 
Ethereum15,006 44,799 54,565 15,775 
Solana144,193 25,967 29,128 10,275 
Other(2)
nm48,077 59,763 40,810 
Total held for operations$124,391 $150,630 $74,103 
__________________
nm - not meaningful
(1)Recorded at impaired cost as of December 31, 2023.
(2)Includes various other crypto assets balances, none of which individually represented more than 5% of total Crypto assets held for operations.
Schedule of collateral posted
The Company’s corporate assets pledged as collateral against crypto borrowings consisted of the following (in thousands, except units):
March 31, 2024December 31, 2023
UnitsFair ValueUnitsFair Value
Assets pledged as collateral
USDC
73,096,425 $73,096 51,879,705 $51,880 
FiatN/A— N/A1,191 
Total pledged as collateral
$73,096 $53,071 
Assets pledged as collateral not meeting derecognition criteria
USDC
221,827,262 $221,827 29,577,339 $29,577 
v3.24.1.u1
ACCOUNTS RECEIVABLE, NET (Tables)
 3 Months Ended
Mar. 31, 2024
Receivables [Abstract]  
Schedule of accounts receivable, net of allowance
Accounts receivable, net of allowance consisted of the following (in thousands):
March 31,December 31,
20242023
Stablecoin revenue receivable$75,499 $57,885 
Customer fee revenue receivable(1)
32,078 23,603 
In-transit customer receivables
88,472 42,562 
Other accounts receivable(1)
118,263 66,799 
Less: allowance for doubtful accounts receivable(33,955)(22,559)
Total accounts receivable, net$280,357 $168,290 
__________________
(1)Includes accounts receivable denominated in crypto assets. See Note 13. Derivatives for additional details
v3.24.1.u1
CRYPTO ASSETS HELD FOR INVESTMENT (Tables)
 3 Months Ended
Mar. 31, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Crypto asset, holding
The Company’s Crypto assets held as collateral and Obligation to return collateral consisted of the following (in thousands, except units):
March 31, 2024December 31, 2023
UnitsFair ValueUnitsFair Value
Crypto assets held as collateral
Bitcoin(1)
1,495 $106,610 — $— 
Total held as collateral$106,610 $— 
Obligation to return collateral
FiatN/A$208,480 N/A$1,063 
Bitcoin1,495 106,610 — — 
Total obligation to return collateral
$315,090 $1,063 
Customer collateral pledged, not recognized
nm$1,578,643 nm$712,644 
__________________
nm - not meaningful
(1) The cost basis of bitcoin held as collateral as of March 31, 2024 was $75.4 million.
The following table summarizes the units, cost basis, and fair value of crypto assets borrowed (in thousands, except units) and the associated crypto asset borrowings:
March 31, 2024December 31, 2023
UnitsCost BasisFair ValueCarrying Value
Crypto assets borrowed
Bitcoin2,688 $112,099 $191,573 $36,368 
Ethereum1,122 2,214 4,093 3,720 
Solana55,575 5,198 11,247 3,516 
Other crypto assets(1)
nm14,247 24,435 1,608 
Total borrowed
$133,758 $231,348 $45,212 
Crypto asset borrowings
Bitcoin3,040 $128,417 $216,703 $50,679 
Ethereum5,601 10,655 20,420 7,059 
Solana55,575 5,198 11,247 3,513 
Other crypto assets(1)
nm14,248 24,435 1,729 
Total borrowings
$158,518 $272,805 $62,980 
__________________
nm - not meaningful
(1)Includes various other crypto assets balances, none of which individually represented more than 5% of total crypto assets borrowed and crypto asset borrowings.
The following table summarizes the units, cost basis, and fair value of Crypto assets held for investment (in thousands, except units):
March 31, 2024December 31, 2023
UnitsCost BasisFair Value
Carrying Value(1)
Bitcoin9,183 $270,438 $654,655 $126,614 
Ethereum96,086 190,447 350,267 129,131 
Other crypto assets(2)
nm213,922 517,406 74,865 
Total held for investment$674,807 $1,522,328 $330,610 
__________________
nm - not meaningful
(1)Recorded at impaired cost as of December 31, 2023.
(2)Includes various other crypto assets balances, none of which individually represented more than 5% of total Crypto assets held for investment.
Crypto asset activity
The following table summarizes the reconciliation of Crypto assets held as collateral for the three months ended March 31, 2024 (in thousands):
January 1, 2024
Cumulative Adjustment
Collateral Received
Collateral Returned
Gains(1)
Losses(1)
March 31, 2024
Crypto assets held as collateral$— $— $90,798 $(15,374)$31,186 $— $106,610 
__________________
(1)No cumulative realized gains or losses occurred during the period.
The following table summarizes the reconciliation of Crypto assets borrowed for the three months ended March 31, 2024 (in thousands):
Additions
Dispositions
January 1, 2024
Crypto Borrowings Originated
Crypto Loans Repaid
Crypto Borrowings Repaid
Crypto Loans Originated
Gains(1)
Losses(1)
March 31, 2024
Crypto assets borrowed$45,212 $191,436 $285,254 $(77,451)$(301,168)$88,352 $(287)$231,348 
__________________
(1)No cumulative realized gains or losses occurred during the period.
The following table summarizes the reconciliation of Crypto assets held for investment for the three months ended March 31, 2024 (in thousands):
Transfers
January 1, 2024
Cumulative
Adjustment(1)
Additions(2)
Sales
From Operating
Crypto Loans OriginatedCrypto Loans Repaid
Gains(3)
Losses(3)
March 31, 2024
Crypto assets held for investment$330,610 $717,373 $3,530 $(59,726)$1,972 $(123,081)$1,221 $655,688 $(5,259)$1,522,328 
__________________
(1)Fair value adjustment on Crypto assets held for investment upon the Company’s adoption of ASU 2023-08.
(2)Additions represent purchases of and staking rewards earned on Crypto assets held for investment.
(3)Includes $17.0 million of cumulative realized gains from sales that occurred during the period and no cumulative realized losses.
The following table summarizes the units, cost basis, and fair value of crypto assets held for operations (in thousands, except units):
March 31, 2024December 31, 2023
UnitsCost BasisFair Value
Carrying Value(1)
Bitcoin101 $5,548 $7,174 $7,243 
Ethereum15,006 44,799 54,565 15,775 
Solana144,193 25,967 29,128 10,275 
Other(2)
nm48,077 59,763 40,810 
Total held for operations$124,391 $150,630 $74,103 
__________________
nm - not meaningful
(1)Recorded at impaired cost as of December 31, 2023.
(2)Includes various other crypto assets balances, none of which individually represented more than 5% of total Crypto assets held for operations.
v3.24.1.u1
CUSTOMER ASSETS AND LIABILITIES (Tables)
 3 Months Ended
Mar. 31, 2024
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):
March 31,December 31,
20242023
Customer custodial funds$5,201,906 $4,570,845 
Safeguarding customer crypto assets329,506,477 192,583,060 
Total customer assets$334,708,383 $197,153,905 
Customer custodial cash liabilities$5,201,906 $4,570,845 
Safeguarding customer crypto liabilities329,506,477 192,583,060 
Total customer liabilities$334,708,383 $197,153,905 
Platform operator, crypto-asset
The following table sets forth the fair values of Safeguarding customer crypto assets as shown on the Condensed Consolidated Balance Sheets (in thousands, except percentages):
March 31, 2024December 31, 2023
Fair Value
Percentage of Total
Fair Value
Percentage of Total
Bitcoin$156,528,307 48 %$89,864,637 47 %
Ethereum62,873,141 19 %40,200,059 21 %
Solana24,304,478 7 %12,906,278 6 %
Other crypto assets(1)
85,800,551 26 %49,612,086 26 %
Total safeguarding customer crypto assets$329,506,477 100 %$192,583,060 100 %
__________________
(1)Includes various other crypto assets balances, none of which individually represented more than 5% of total Safeguarding customer crypto assets.
v3.24.1.u1
OTHER CURRENT AND NON-CURRENT ASSETS (Tables)
 3 Months Ended
Mar. 31, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Schedule of prepaid expenses and other current and non-current assets
Other current assets and other non-current assets consisted of the following (in thousands):    
March 31,December 31,
20242023
Other current assets
Crypto assets held for operations$150,630 $74,103 
Prepaid expenses98,004 79,552 
Assets pledged as collateral(1)
73,096 53,071 
Income tax receivable39,945 63,726 
Other17,862 16,191 
Total other current assets$379,537 $286,643 
Other non-current assets
Strategic investments
$346,902 $343,045 
Property and equipment, net193,056 192,550 
Intangible assets, net
79,755 86,422 
Lease right of use assets
10,164 12,737 
Deposits and other23,985 19,840 
Total other non-current assets$653,862 $654,594 
_______________
(1) See Note 6. Collateralized Arrangements and Financing for additional details.
Crypto asset activity
The following table summarizes the reconciliation of Crypto assets held as collateral for the three months ended March 31, 2024 (in thousands):
January 1, 2024
Cumulative Adjustment
Collateral Received
Collateral Returned
Gains(1)
Losses(1)
March 31, 2024
Crypto assets held as collateral$— $— $90,798 $(15,374)$31,186 $— $106,610 
__________________
(1)No cumulative realized gains or losses occurred during the period.
The following table summarizes the reconciliation of Crypto assets borrowed for the three months ended March 31, 2024 (in thousands):
Additions
Dispositions
January 1, 2024
Crypto Borrowings Originated
Crypto Loans Repaid
Crypto Borrowings Repaid
Crypto Loans Originated
Gains(1)
Losses(1)
March 31, 2024
Crypto assets borrowed$45,212 $191,436 $285,254 $(77,451)$(301,168)$88,352 $(287)$231,348 
__________________
(1)No cumulative realized gains or losses occurred during the period.
The following table summarizes the reconciliation of Crypto assets held for investment for the three months ended March 31, 2024 (in thousands):
Transfers
January 1, 2024
Cumulative
Adjustment(1)
Additions(2)
Sales
From Operating
Crypto Loans OriginatedCrypto Loans Repaid
Gains(3)
Losses(3)
March 31, 2024
Crypto assets held for investment$330,610 $717,373 $3,530 $(59,726)$1,972 $(123,081)$1,221 $655,688 $(5,259)$1,522,328 
__________________
(1)Fair value adjustment on Crypto assets held for investment upon the Company’s adoption of ASU 2023-08.
(2)Additions represent purchases of and staking rewards earned on Crypto assets held for investment.
(3)Includes $17.0 million of cumulative realized gains from sales that occurred during the period and no cumulative realized losses.
The following table summarizes the units, cost basis, and fair value of crypto assets held for operations (in thousands, except units):
March 31, 2024December 31, 2023
UnitsCost BasisFair Value
Carrying Value(1)
Bitcoin101 $5,548 $7,174 $7,243 
Ethereum15,006 44,799 54,565 15,775 
Solana144,193 25,967 29,128 10,275 
Other(2)
nm48,077 59,763 40,810 
Total held for operations$124,391 $150,630 $74,103 
__________________
nm - not meaningful
(1)Recorded at impaired cost as of December 31, 2023.
(2)Includes various other crypto assets balances, none of which individually represented more than 5% of total Crypto assets held for operations.
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):
March 31,
December 31,
20242023
Carrying amount, beginning of period$330,346 $315,285 
Net additions(1)
4,527 60,979 
Upward adjustments43 62 
Previously held interest in ORDAM (see Note 4)— (20,000)
Impairments and downward adjustments(937)(25,980)
Carrying amount, end of period$333,979 $330,346 
__________________
(1)Net additions include additions from purchases and reductions due to exits of strategic investments.
v3.24.1.u1
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)
 3 Months Ended
Mar. 31, 2024
Payables and Accruals [Abstract]  
Schedule of accounts payable and accrued expenses
Accrued expenses and other current liabilities consisted of the following (in thousands):
March 31,December 31,
20242023
Accrued payroll and payroll related$117,309 $224,237 
Other accrued expenses126,841 89,254 
Income taxes payable35,222 17,366 
Accounts payable26,825 39,294 
Lease liabilities8,820 10,902 
Other payables(1)
123,304 115,130 
Total accrued expenses and other current liabilities$438,321 $496,183 
__________________
(1)Includes other payables denominated in crypto assets. See Note 13. Derivatives for additional details.
v3.24.1.u1
LONG-TERM DEBT (Tables)
 3 Months Ended
Mar. 31, 2024
Debt Disclosure [Abstract]  
Schedule of long-term debt instruments
The components of long-term debt were as follows as of March 31, 2024 (in thousands, except percentages):
Long-term Debt
Effective Interest RatePrincipal AmountUnamortized Debt Discount and Issuance CostsNet Carrying Amount
0.50% 2026 Convertible Notes due on June 1, 2026
0.98 %$1,273,013 $(13,890)$1,259,123 
3.38% 2028 Senior Notes due on October 1, 2028
3.57 %1,000,000 (7,810)992,190 
0.25% 2030 Convertible Notes due on April 1, 2030
0.55 %1,265,000 (22,038)1,242,962 
3.63% 2031 Senior Notes due on October 1, 2031
3.77 %737,457 (6,718)730,739 
Total$4,275,470 $(50,456)$4,225,014 
The components of long-term debt were as follows as of December 31, 2023 (in thousands, except percentages):
Long-term Debt
Effective Interest RatePrincipal AmountUnamortized Debt Discount and Issuance CostsNet Carrying Amount
0.50% 2026 Convertible Notes due on June 1, 2026
0.98 %$1,273,013 $(15,378)$1,257,635 
3.38% 2028 Senior Notes due on October 1, 2028
3.57 %1,000,000 (8,218)991,782 
3.63% 2031 Senior Notes due on October 1, 2031
3.77 %737,457 (6,917)730,540 
Total$3,010,470 $(30,513)$2,979,957 
v3.24.1.u1
DERIVATIVES (Tables)
 3 Months Ended
Mar. 31, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Description of derivatives and related hedge accounting designation
The following outlines the Company’s derivatives, which were all embedded forward contracts as of March 31, 2024:
Location of Host Contract and Derivative on Balance SheetsDescription of Derivative
Accounts receivable, net
The Company provided services for which, under the contract, the counterparty pays a fixed amount in crypto assets in the future.
Crypto asset borrowings
The Company borrowed crypto assets that resulted in the obligation to deliver a fixed amount of crypto assets in the future. See Note 6. Collateralized Arrangements and Financing for additional information.
Obligation to return collateral
The Company receives crypto asset collateral that results in the obligation to return collateral received as a fixed amount of crypto assets. See Note 6. Collateralized Arrangements and Financing for additional information.
Accrued expenses and other current liabilities
The Company entered into arrangements that result in the obligation to deliver a fixed amount of crypto assets in the future.
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):
March 31,December 31,
20242023
Designated as hedges
Crypto asset borrowings(1)
$— $31,666 
Not designated as hedging instrument
Accounts receivable denominated in crypto assets21,362 16,335 
Crypto asset borrowings
158,518 12,503 
Obligation to return loan collateral75,424 — 
Other payables denominated in crypto assets33,012 20,092 
__________________
(1)    Prior to the adoption of ASU 2023-08, the Company applied hedge accounting using these derivative instruments in qualifying fair value hedges to hedge the fair value exposure of crypto asset prices for the crypto assets borrowed. As of January 1, 2024, the date of ASU 2023-08 adoption, these derivative instruments have been dedesignated.
The following tables summarize information on derivative assets and liabilities that are reflected on the Condensed Consolidated Balance Sheets, by accounting designation (in thousands):
Gross Derivative AssetsGross Derivative Liabilities
Not Designated as HedgesDesignated as HedgesTotal Derivative AssetsNot Designated as HedgesDesignated as HedgesTotal Derivative Liabilities
March 31, 2024
Accounts receivable denominated in crypto assets$41,263 $— $41,263 $— $— $— 
Crypto asset borrowings264 — 264 114,551 — 114,551 
Obligation to return loan collateral— — — 31,186 — 31,186 
Other payables denominated in crypto assets2,687 — 2,687 4,367 — 4,367 
Total fair value of derivative assets and liabilities$44,214 $— $44,214 $150,104 $— $150,104 
December 31, 2023
Accounts receivable denominated in crypto assets$28,065 $— $28,065 $— $— $— 
Crypto asset borrowings26 (25)1 5,290 13,522 18,812 
Other payables denominated in crypto assets2,511 — 2,511 3,101 — 3,101 
Total fair value of derivative assets and liabilities$30,602 $(25)$30,577 $8,391 $13,522 $21,913 
Schedule of gains (losses) recorded in income
Gains (losses) on derivative instruments recognized in the Condensed Consolidated Statements of Operations were as follows (in thousands):
Three Months Ended March 31, 2024Three Months Ended March 31, 2023
DerivativesHedged Items
Income Statement Impact(4)
DerivativesHedged ItemsIncome Statement Impact
Designated as hedging instrument
Crypto asset futures(1)
$— $— $— $(43,116)$48,491 $5,375 
Crypto asset borrowings(1)
— — — (91,714)48,600 (43,114)
Not designated as hedging instrument
Accounts receivable denominated in crypto assets(2)
13,795 — 13,795 42,924 — 42,924 
Crypto asset borrowings(3)
(95,914)— (95,914)— — — 
Obligation to return loan collateral(3)
(31,186)— (31,186)— — — 
Other payables denominated in crypto assets(1)
(1,721)— (1,721)439 — 439 
Other(1)
— — — (213)— (213)
Total$(115,026)$— $(115,026)$(91,680)$97,091 $5,411 
__________________
(1)Changes in fair value are recorded in Other operating expense (income), net in the Condensed Consolidated Statements of Operations.
(2)Changes in fair value are recorded in Other (income) expense, net or Other operating expense (income), net in the Condensed Consolidated Statements of Operations depending on the nature of the receivable.
(3)Changes in fair value are recorded in Transaction expense in the Condensed Consolidated Statements of Operations.
(4)Though the Company has dedesignated crypto assets borrowed that previously qualified as fair value hedges, the impact of derivatives is naturally offset, at least in part, in the Condensed Consolidated Statements of Operations by the impact of associated naturally offsetting positions. See Quantitative and Qualitative Information about Market Risk in Part I, Item 3 of this Quarterly Report on Form 10-Q for more information.
v3.24.1.u1
FAIR VALUE MEASUREMENTS (Tables)
 3 Months Ended
Mar. 31, 2024
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):
March 31, 2024December 31, 2023
Level 1Level 2Level 1Level 2
Assets
Cash equivalents(1)
$3,037,792 $— $3,682,917 $— 
Customer custodial funds(2)
4,894,429 — 3,301,029 — 
Crypto asset loan receivables
— 196,141 — 22,229 
Crypto assets borrowed(3)
231,348 — 45,212 — 
Safeguarding customer crypto assets— 329,506,477 — 192,583,060 
Derivative assets(4)
— 44,214 — 30,577 
Crypto assets held for operations150,630 — 74,103 — 
Crypto assets held as collateral106,610 — — — 
Crypto assets held for investment1,522,328 — 330,610 — 
Total assets$9,943,137 $329,746,832 $7,433,871 $192,635,866 
Liabilities
Safeguarding customer crypto liabilities$— $329,506,477 $— $192,583,060 
Derivative liabilities(4)
— 150,104 — 21,913 
Obligation to return collateral106,610 — — — 
Total liabilities$106,610 $329,656,581 $— $192,604,973 
__________________
(1)Represents money market funds. Excludes $3.5 billion of corporate cash held in deposit at banks and $124.8 million held at venues, which were not measured and recorded at fair value as of March 31, 2024. Excludes $1.4 billion of corporate cash held in deposit at banks and $88.8 million held at venues, which were not measured and recorded at fair value as of December 31, 2023.
(2)Represents money market funds. Excludes customer custodial funds of $307.5 million and $1.3 billion held in deposit at financial institutions and not measured and recorded at fair value as of March 31, 2024 and December 31, 2023, respectively.
(3)Includes crypto assets held that were designated as hedged items in fair value hedges as of December 31, 2023 and excludes crypto assets of $404.7 million held at cost as of December 31, 2023.
(4)See Note 13. Derivatives for additional details.
v3.24.1.u1
STOCK-BASED COMPENSATION (Tables)
 3 Months Ended
Mar. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Schedule of activity of options outstanding
A summary of options activity for the three months ended March 31, 2024 is as follows (in thousands, except per share and years data):
Options OutstandingWeighted Average Exercise Price per ShareWeighted Average Remaining Contractual Life (Years)Aggregate Intrinsic Value
Balance at January 1, 202428,697 $25.01 6.1$4,295,055 
Exercised(2,338)18.84 
Forfeited and cancelled(24)30.36 
Balance at March 31, 202426,335 $25.55 5.9$6,309,011 
Exercisable at March 31, 202420,201 $26.19 5.8$4,826,583 
Vested and expected to vest at March 31, 202420,211 $26.18 5.8$4,829,027 
Schedule of activity of RSUs outstanding
A summary of RSU activity for the three months ended March 31, 2024 is as follows (in thousands, except per share data):
Number of SharesWeighted-Average Grant Date Fair Value Per Share
Balance at January 1, 20243,016 $108.07 
Granted5,139 142.75 
Vested(1,580)131.48 
Forfeited and cancelled(212)125.33 
Balance at March 31, 20246,363 $129.69 
Schedule of activity of PRSUs outstanding
A summary of PRSU activity for the three months ended March 31, 2024 is as follows (in thousands, except per share data):
Number of SharesWeighted-Average Grant Date Fair Value Per Share
Balance at January 1, 2024804 $55.42 
Vested(80)55.42 
Balance at March 31, 2024724 $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 SharesWeighted-Average Grant Date Fair Value Per Share
Balance at January 1, 2024543 $114.22 
Vested(182)129.03 
Forfeited and cancelled(4)267.48 
Balance at March 31, 2024357 $104.97 
Schedule of stock based compensation
The effects of stock-based compensation expense in the Condensed Consolidated Statements of Operations are as follows (in thousands):
Three Months Ended March 31,
20242023
Technology and development$139,830 $122,696 
Sales and marketing16,623 14,209 
General and administrative68,051 61,955 
Restructuring— 84,042 
Total$224,504 $282,902 
v3.24.1.u1
OTHER (INCOME) EXPENSE, NET (Tables)
 3 Months Ended
Mar. 31, 2024
Other Income and Expenses [Abstract]  
Schedule of other nonoperating income (expense)
Other (income) expense, net consisted of the following (in thousands):
Three Months Ended March 31,
20242023
Foreign exchange losses, net$1,651 $13,878 
Strategic investment losses, net
849 6,319 
Gains on crypto asset loan receivables(1)
(25,526)— 
Gains on other financial instruments, net(13,186)— 
Other(9,393)68 
Total Other (income) expense, net$(45,605)$20,265 
__________________
(1)Represents unrealized gains on crypto asset loans made from the Company’s portfolio of crypto assets held as investment. See Note 6. Collateralized Arrangements and Financing for additional details.
v3.24.1.u1
NET INCOME (LOSS) PER SHARE (Tables)
 3 Months Ended
Mar. 31, 2024
Earnings Per Share [Abstract]  
Schedule of computation of net (loss) income per share
The computation of Net income (loss) per share is as follows (in thousands, except per share amounts):
Three Months Ended March 31,
20242023
Basic Net income (loss) per share:
Numerator
Net income (loss)$1,176,245 $(78,896)
Less: Income allocated to participating securities(766)— 
Net income (loss) attributable to common stockholders, basic$1,175,479 $(78,896)
Denominator
Weighted-average shares of common stock used to compute Net income (loss) per share attributable to common stockholders, basic242,793 231,489 
Net income (loss) per share attributable to common stockholders, basic$4.84 $(0.34)
Diluted Net income (loss) per share:
Numerator
Net income (loss)$1,176,245 $(78,896)
Less: Income allocated to participating securities(697)— 
Add: Interest on convertible notes, net of tax2,531 — 
Net income (loss) attributable to common stockholders, diluted
$1,178,079 $(78,896)
Denominator
Weighted-average shares of common stock used to compute Net income (loss) per share attributable to common stockholders, basic242,793 231,489 
Weighted-average effect of potentially dilutive securities:
Stock options18,534 — 
Convertible notes4,145 — 
RSUs2,164 — 
Restricted common stock309 — 
Weighted-average shares of common stock used to compute Net income (loss) per share attributable to common stockholders, diluted267,945 231,489 
Net income (loss) per share attributable to common stockholders, diluted$4.40 $(0.34)
Schedule of potentially dilutive shares
The following potentially dilutive shares were not included in the calculation of diluted shares outstanding as the effect would have been anti-dilutive (in thousands):
March 31,
2024 2023
Stock options6,671 31,274 
ESPP733 822 
PRSUs322 — 
RSUs292 10,592 
Restricted common stock242 1,004 
Convertible notes— 3,880 
Contingent consideration— 76 
Total8,260 47,648 
v3.24.1.u1
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION (Tables)
 3 Months Ended
Mar. 31, 2024
Supplemental Cash Flow Elements [Abstract]  
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Changes in operating assets and liabilities affecting cash were as follows (in thousands):
Three Months Ended March 31,
20242023
USDC$(299,507)$497,303 
Accounts receivable(108,802)(67,126)
Deposits in transit(21,260)(15,262)
Income taxes, net41,613 (7,608)
Other current and non-current assets(3,856)(14,892)
Other current and non-current liabilities(82,190)(77,088)
Net changes in operating assets and liabilities$(474,002)$315,327 
Reconciliation of cash, cash equivalents, and restricted cash (in thousands):
Three Months Ended March 31,
20242023
Cash and cash equivalents$6,711,400 $5,018,409 
Restricted cash33,499 26,712 
Customer custodial cash5,002,888 5,293,029 
Total cash, cash equivalents, and restricted cash$11,747,787 $10,338,150 
Supplemental schedule of non-cash investing and financing activities were as follows (in thousands):
Three Months Ended March 31,
20242023
Crypto assets borrowed$191,436 $170,599 
Crypto assets borrowed repaid with crypto assets77,451 200,151 
Crypto asset loans originated
424,248 — 
Crypto asset loans repaid
286,475 — 
Non-cash assets received as collateral90,798 19,116 
Non-cash assets received as collateral returned15,374 45,990 
Non-cash assets pledged as collateral42,020 30,774 
Non-cash assets pledged as collateral returned20,804 10,743 
Non-cash consideration paid for business combinations— 51,494 
Realized gains on crypto assets held for investment— 48,491 
Cumulative-effect adjustment due to the adoption of ASU 2023-08561,489 — 
v3.24.1.u1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Dec. 31, 2023
Jan. 01, 2024
Dec. 31, 2022
Concentration Risk [Line Items]          
Assets held at venues $ 203,300   $ 93,500    
Unrestricted cash, held at venues 124,800   88,800    
Restricted cash, held at venues 14,900   4,700    
Crypto assets held for operations 63,600   0    
Fair Value 1,522,328        
Deferred tax liabilities 177,900        
Retained earnings 8,070,994 $ 5,674,946 6,281,649   $ 5,454,557
Hedged asset, fair value hedge, cumulative increase (decrease)     (3,900)    
Cumulative adjustment          
Concentration Risk [Line Items]          
Fair Value     739,500    
Deferred tax liabilities     177,900    
Retained earnings     561,489    
Crypto assets borrowed       $ 62,900  
Retained Earnings          
Concentration Risk [Line Items]          
Retained earnings $ 3,558,080 $ 1,646,579 1,820,346   $ 1,725,475
Retained Earnings | Cumulative adjustment          
Concentration Risk [Line Items]          
Retained earnings     $ 561,489    
Financing Receivable | Customer Concentration Risk | Four customers          
Concentration Risk [Line Items]          
Concentration risk, percentage (more than)     10.00%    
Financing Receivable | Customer Concentration Risk | Five Customers          
Concentration Risk [Line Items]          
Concentration risk, percentage (more than) 10.00%        
Unrecorded Financing Receivable | Customer Concentration Risk | Three Customers          
Concentration Risk [Line Items]          
Concentration risk, percentage (more than) 10.00%   10.00%    
Accounts Receivable | Customer Concentration Risk | Two Customers          
Concentration Risk [Line Items]          
Concentration risk, percentage (more than) 10.00%   10.00%    
Revenue Benchmark | Customer Concentration Risk | One Customer          
Concentration Risk [Line Items]          
Concentration risk, percentage (more than) 10.00% 10.00%      
v3.24.1.u1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Changes in Presentation (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Crypto assets held   $ 0
Crypto assets held for operations   74,103
Fair Value $ 231,348 45,212
Crypto assets held for investment   330,610
Crypto Assets   449,925
Previously Reported    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Crypto assets held   449,925
Crypto assets held for operations   0
Fair Value   0
Crypto assets held for investment   0
Crypto Assets   449,925
Cumulative-effect adjustment due to the adoption of Accounting Standards Update 2023-08, net of tax    
New Accounting Pronouncements or Change in Accounting Principle [Line Items]    
Crypto assets held   (449,925)
Crypto assets held for operations   74,103
Fair Value   45,212
Crypto assets held for investment   330,610
Crypto Assets   $ 0
v3.24.1.u1
RESTRUCTURING - Narrative (Details) - USD ($)
 1 Months Ended 3 Months Ended
Jan. 31, 2023
Mar. 31, 2024
Mar. 31, 2023
Restructuring Cost and Reserve [Line Items]      
Number of positions eliminated, period percent 21.00%    
Restructuring   $ 0 $ 144,489,000
Stock-based compensation      
Restructuring Cost and Reserve [Line Items]      
Restructuring     84,000,000
Employee Severance      
Restructuring Cost and Reserve [Line Items]      
Restructuring     57,700,000
Other Restructuring      
Restructuring Cost and Reserve [Line Items]      
Restructuring     $ 0
v3.24.1.u1
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
v3.24.1.u1
ACQUISITIONS - Narrative (Details) - One River Digital Asset Management, LLC
$ in Millions
Mar. 03, 2023
USD ($)
shares
Business Acquisition [Line Items]  
Cash subject to an indemnity holdback $ 6.0
Number of shares to subject to indemnity holdback (in shares) | shares 119,991
Holdback release term 18 months
Total acquisition costs $ 2.6
v3.24.1.u1
ACQUISITIONS - Schedule of ORDAM net assets acquired (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Mar. 03, 2023
Business Acquisition [Line Items]      
Goodwill $ 1,139,670 $ 1,139,670  
One River Digital Asset Management, LLC      
Business Acquisition [Line Items]      
Goodwill     $ 65,764
Intangible assets, net     21,100
Other assets and liabilities, net     9,966
Net assets acquired     $ 96,830
v3.24.1.u1
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
v3.24.1.u1
REVENUE - Schedule of revenue disaggregated by source (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Disaggregation of Revenue [Line Items]    
Interest and finance fee income $ 66,663 $ 43,313
Total revenue 1,637,570 772,529
Net revenue    
Disaggregation of Revenue [Line Items]    
Total revenue 1,587,677 736,398
Total transaction revenue    
Disaggregation of Revenue [Line Items]    
Revenue 1,076,741 374,713
Consumer, net    
Disaggregation of Revenue [Line Items]    
Revenue 935,212 329,152
Institutional, net    
Disaggregation of Revenue [Line Items]    
Revenue 85,392 22,311
Other transaction revenue    
Disaggregation of Revenue [Line Items]    
Revenue 56,137 23,250
Subscription and services revenue    
Disaggregation of Revenue [Line Items]    
Revenue 510,936 361,685
Stablecoin revenue    
Disaggregation of Revenue [Line Items]    
Revenue 197,317 198,898
Blockchain rewards    
Disaggregation of Revenue [Line Items]    
Revenue 150,929 73,749
Custodial fee revenue    
Disaggregation of Revenue [Line Items]    
Revenue 32,341 17,043
Other subscription and services revenue    
Disaggregation of Revenue [Line Items]    
Revenue 63,686 28,682
Other revenue    
Disaggregation of Revenue [Line Items]    
Total revenue 49,893 36,131
Corporate interest and other income    
Disaggregation of Revenue [Line Items]    
Corporate interest and other income $ 49,893 $ 36,131
v3.24.1.u1
REVENUE - Schedule of revenue disaggregated by geographic area (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Disaggregation of Revenue [Line Items]    
Total revenue $ 1,637,570 $ 772,529
United States    
Disaggregation of Revenue [Line Items]    
Total revenue 1,353,450 686,769
International    
Disaggregation of Revenue [Line Items]    
Total revenue $ 284,120 $ 85,760
v3.24.1.u1
COLLATERALIZED ARRANGEMENTS AND FINANCING - Summary of Prime Financing Lending Arrangements (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Receivables [Abstract]    
Trade finance receivables $ 122,817 $ 0
Fiat loans receivable 210,185 171,196
Crypto asset loan receivables past due 196,141 22,229
Total loan receivables 529,143 193,425
USDC receivables $ 268,345 $ 205,645
v3.24.1.u1
COLLATERALIZED ARRANGEMENTS AND FINANCING - Additional Information (Details)
 3 Months Ended 12 Months Ended
Mar. 31, 2024
Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Crypto asset, fee on borrowings 2.30% 2.00%
Minimum    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Assets pledged as collateral, percentage of fair value 100.00%  
Maximum    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Assets pledged as collateral, percentage of fair value 400.00%  
v3.24.1.u1
COLLATERALIZED ARRANGEMENTS AND FINANCING - Crypto Assets Held as Collateral and Obligation to Return (Details)
$ in Thousands
Mar. 31, 2024
USD ($)
Unit
Dec. 31, 2023
USD ($)
Unit
Crypto Asset, Activity [Line Items]    
Crypto assets held as collateral $ 106,610 $ 0
Obligation to return collateral 315,090 1,063
Collateral received 1,578,643 712,644
Crypto assets held as collateral   0
Fiat    
Crypto Asset, Activity [Line Items]    
Obligation to return collateral $ 208,480 $ 1,063
Bitcoin    
Crypto Asset, Activity [Line Items]    
Obligation to return collateral, units | Unit 1,495 0
Obligation to return collateral $ 106,610 $ 0
Asset Pledged as Collateral    
Crypto Asset, Activity [Line Items]    
Crypto assets held as collateral $ 106,610 $ 0
Bitcoin    
Crypto Asset, Activity [Line Items]    
Units | Unit 9,183  
Bitcoin | Asset Pledged as Collateral    
Crypto Asset, Activity [Line Items]    
Units | Unit 1,495 0
Crypto assets held as collateral $ 106,610 $ 0
Crypto assets held as collateral $ 75,400  
v3.24.1.u1
COLLATERALIZED ARRANGEMENTS AND FINANCING - Reconciliation of Crypto Assets Held as Collateral (Details)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
USD ($)
Crypto Asset [Roll Forward]  
January 1, 2024 $ 0
Collateral Received 90,798
Collateral Returned (15,374)
Gains 31,186
Losses 0
March 31, 2024 106,610
Cumulative adjustment  
Crypto Asset [Roll Forward]  
January 1, 2024 $ 0
v3.24.1.u1
COLLATERALIZED ARRANGEMENTS AND FINANCING - Units, cost basis and fair value of crypto asset borrowings and borrowed (Details)
$ in Thousands
Mar. 31, 2024
USD ($)
Unit
Dec. 31, 2023
USD ($)
Crypto assets borrowed    
Cost Basis $ 133,758  
Fair Value 231,348 $ 45,212
Crypto asset borrowings    
Cost Basis 158,518  
Fair Value $ 272,805 62,980
Bitcoin    
Crypto assets borrowed    
Units | Unit 2,688  
Cost Basis $ 112,099  
Fair Value $ 191,573 36,368
Crypto asset borrowings    
Units | Unit 3,040  
Cost Basis $ 128,417  
Fair Value $ 216,703 50,679
Ethereum    
Crypto assets borrowed    
Units | Unit 1,122  
Cost Basis $ 2,214  
Fair Value $ 4,093 3,720
Crypto asset borrowings    
Units | Unit 5,601  
Cost Basis $ 10,655  
Fair Value $ 20,420 7,059
Solana    
Crypto assets borrowed    
Units | Unit 55,575  
Cost Basis $ 5,198  
Fair Value $ 11,247 3,516
Crypto asset borrowings    
Units | Unit 55,575  
Cost Basis $ 5,198  
Fair Value 11,247 3,513
Other crypto assets    
Crypto assets borrowed    
Cost Basis 14,247  
Fair Value 24,435 1,608
Crypto asset borrowings    
Cost Basis 14,248  
Fair Value $ 24,435 $ 1,729
v3.24.1.u1
COLLATERALIZED ARRANGEMENTS AND FINANCING - Reconciliation of crypto assets borrowed (Details)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
USD ($)
Receivables [Abstract]  
January 1, 2024 $ 45,212
Crypto Borrowings Originated 191,436
Crypto Loans Repaid 285,254
Crypto Borrowings Repaid (77,451)
Crypto Loans Originated (301,168)
Gains 88,352
Losses 287
March 31, 2024 $ 231,348
v3.24.1.u1
COLLATERALIZED ARRANGEMENTS AND FINANCING - Assets pledged as collateral against crypto borrowings (Details)
$ in Thousands
Mar. 31, 2024
USD ($)
Unit
Dec. 31, 2023
USD ($)
Unit
Crypto Asset, Activity [Line Items]    
Fair Value $ 348,036,477 $ 206,982,953
Asset Pledged as Collateral    
Crypto Asset, Activity [Line Items]    
Fair Value $ 73,096 $ 53,071
Asset Pledged as Collateral without Right    
Crypto Asset, Activity [Line Items]    
Units | Unit 221,827,262 29,577,339
Fair Value $ 221,827 $ 29,577
USDC    
Crypto Asset, Activity [Line Items]    
Units | Unit 73,096,425 51,879,705
USDC | Asset Pledged as Collateral    
Crypto Asset, Activity [Line Items]    
Fair Value $ 73,096 $ 51,880
Fiat | Asset Pledged as Collateral    
Crypto Asset, Activity [Line Items]    
Fair Value $ 0 $ 1,191
v3.24.1.u1
ACCOUNTS RECEIVABLE, NET - Schedule of accounts and loans receivable (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Receivables [Abstract]    
Stablecoin revenue receivable $ 75,499 $ 57,885
Customer fee revenue receivable 32,078 23,603
In-transit customer receivables 88,472 42,562
Other accounts receivable 118,263 66,799
Less: allowance for doubtful accounts receivable (33,955) (22,559)
Total accounts receivable, net $ 280,357 $ 168,290
v3.24.1.u1
CRYPTO ASSETS HELD FOR INVESTMENT - Summary of Units, Cost Basis and Fair Value (Details)
$ in Thousands
Mar. 31, 2024
USD ($)
Unit
Dec. 31, 2023
USD ($)
Indefinite-lived Intangible Assets [Line Items]    
Cost Basis $ 674,807  
Fair Value $ 1,522,328  
Carrying Value   $ 330,610
Bitcoin    
Indefinite-lived Intangible Assets [Line Items]    
Units | Unit 9,183  
Cost Basis $ 270,438  
Fair Value $ 654,655  
Carrying Value   126,614
Ethereum    
Indefinite-lived Intangible Assets [Line Items]    
Units | Unit 96,086  
Cost Basis $ 190,447  
Fair Value 350,267  
Carrying Value   129,131
Other crypto assets    
Indefinite-lived Intangible Assets [Line Items]    
Cost Basis 213,922  
Fair Value $ 517,406  
Carrying Value   $ 74,865
v3.24.1.u1
CRYPTO ASSETS HELD FOR INVESTMENT - Reconciliation of Crypto Assets Held for Investment (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Dec. 31, 2023
Crypto Asset [Roll Forward]    
January 1, 2024 $ 330,610  
Additions 3,530  
Dispositions (59,726)  
From Operating 1,972  
Crypto Loans Originated (123,081)  
Crypto Loans Repaid 1,221  
Gains 655,688  
Losses (5,259)  
March 31, 2024 1,522,328  
Cumulative realized gain 17,000  
Realized losses $ 0  
Cumulative adjustment    
Crypto Asset [Roll Forward]    
Cumulative Adjustment   $ 717,373
v3.24.1.u1
CRYPTO ASSETS HELD FOR INVESTMENT - Narrative (Details)
$ in Millions
Mar. 31, 2024
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]  
Crypto asset subject to selling restriction $ 264.3
v3.24.1.u1
CUSTOMER ASSETS AND LIABILITIES - Schedule of Customers' Cash and Crypto Positions (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]    
Customer custodial funds $ 5,201,906 $ 4,570,845
Safeguarding customer crypto assets 329,506,477 192,583,060
Total customer assets 334,708,383 197,153,905
Customer custodial cash liabilities 5,201,906 4,570,845
Safeguarding customer crypto liabilities 329,506,477 192,583,060
Total customer liabilities $ 334,708,383 $ 197,153,905
v3.24.1.u1
CUSTOMER ASSETS AND LIABILITIES - Narrative (Details) - USD ($)
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]    
Losses incurred in connection with safeguarding customer crypto assets $ 0 $ 0
v3.24.1.u1
CUSTOMER ASSETS AND LIABILITIES - Fair Value of Customer Crypto Assets (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Cryptocurrency, by Type [Line Items]    
Safeguarding customer crypto assets $ 329,506,477 $ 192,583,060
Percentage of total 100.00% 100.00%
Bitcoin    
Cryptocurrency, by Type [Line Items]    
Safeguarding customer crypto assets $ 156,528,307 $ 89,864,637
Percentage of total 48.00% 47.00%
Ethereum    
Cryptocurrency, by Type [Line Items]    
Safeguarding customer crypto assets $ 62,873,141 $ 40,200,059
Percentage of total 19.00% 21.00%
Solana    
Cryptocurrency, by Type [Line Items]    
Safeguarding customer crypto assets $ 24,304,478 $ 12,906,278
Percentage of total 7.00% 6.00%
Other crypto assets    
Cryptocurrency, by Type [Line Items]    
Safeguarding customer crypto assets $ 85,800,551 $ 49,612,086
Percentage of total 26.00% 26.00%
v3.24.1.u1
OTHER CURRENT AND NON-CURRENT ASSETS - Schedule of prepaid expenses and other current and non-current assets (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Other current assets    
Crypto assets held for operations $ 150,630  
Crypto assets held for operations   $ 74,103
Prepaid expenses 98,004 79,552
Assets pledged as collateral 73,096 53,071
Income tax receivable 39,945 63,726
Other 17,862 16,191
Total other current assets 379,537 286,643
Other non-current assets    
Strategic investments 346,902 343,045
Property and equipment, net 193,056 192,550
Intangible assets, net 79,755 86,422
Lease right-of-use assets 10,164 12,737
Deposits and other 23,985 19,840
Total other non-current assets $ 653,862 $ 654,594
v3.24.1.u1
OTHER CURRENT AND NON-CURRENT ASSETS - Crypto assets held for operation (Details)
$ in Thousands
Mar. 31, 2024
USD ($)
Unit
Dec. 31, 2023
USD ($)
Crypto Asset, Activity [Line Items]    
Cost Basis $ 124,391  
Fair Value 150,630  
Carrying Value   $ 74,103
Bitcoin    
Crypto Asset, Activity [Line Items]    
Cost Basis 5,548  
Fair Value $ 7,174  
Units | Unit 101  
Carrying Value   7,243
Ethereum    
Crypto Asset, Activity [Line Items]    
Cost Basis $ 44,799  
Fair Value $ 54,565  
Units | Unit 15,006  
Carrying Value   15,775
Solana    
Crypto Asset, Activity [Line Items]    
Cost Basis $ 25,967  
Fair Value $ 29,128  
Units | Unit 144,193  
Carrying Value   10,275
Other crypto assets    
Crypto Asset, Activity [Line Items]    
Cost Basis $ 48,077  
Fair Value $ 59,763  
Carrying Value   $ 40,810
v3.24.1.u1
OTHER CURRENT AND NON-CURRENT ASSETS - Schedule of other investments accounted for under the measurement alternative (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Equity Securities without Readily Determinable Fair Value [Roll Forward]    
Carrying amount, beginning of period $ 330,346 $ 315,285
Net additions 4,527 60,979
Upward adjustments 43 62
Previously held interest in ORDAM 0 (20,000)
Impairments and downward adjustments (937) (25,980)
Carrying amount, end of period $ 333,979 $ 330,346
v3.24.1.u1
OTHER CURRENT AND NON-CURRENT ASSETS - Narrative (Details) - USD ($)
$ in Millions
Mar. 31, 2024
Dec. 31, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]    
Upward adjustments due to remeasurement of investments $ 5.0 $ 4.9
Impairment loss and downward adjustments $ 127.6 $ 127.0
v3.24.1.u1
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Schedule of accounts payable and accrued expenses (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Payables and Accruals [Abstract]    
Accrued payroll and payroll related $ 117,309 $ 224,237
Other accrued expenses 126,841 89,254
Income taxes payable 35,222 17,366
Accounts payable 26,825 39,294
Lease liabilities, current 8,820 10,902
Other payables 123,304 115,130
Total accrued expenses and other current liabilities $ 438,321 $ 496,183
v3.24.1.u1
LONG-TERM DEBT - Schedule of Long Term Debt (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Debt Instrument [Line Items]    
Principal Amount $ 4,275,470 $ 3,010,470
Unamortized Debt Discount and Issuance Costs (50,456) (30,513)
Net Carrying Amount $ 4,225,014 $ 2,979,957
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 $ 1,273,013 $ 1,273,013
Unamortized Debt Discount and Issuance Costs (13,890) (15,378)
Net Carrying Amount $ 1,259,123 $ 1,257,635
Convertible notes | 2030 Convertible Notes    
Debt Instrument [Line Items]    
Debt instrument, stated percentage 0.25%  
Effective Interest Rate 0.55%  
Principal Amount $ 1,265,000  
Unamortized Debt Discount and Issuance Costs (22,038)  
Net Carrying Amount $ 1,242,962  
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 (7,810) (8,218)
Net Carrying Amount $ 992,190 $ 991,782
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 $ 737,457
Unamortized Debt Discount and Issuance Costs (6,718) (6,917)
Net Carrying Amount $ 730,739 $ 730,540
v3.24.1.u1
LONG-TERM DEBT - Narrative (Details)
$ / shares in Units, $ in Thousands
 1 Months Ended 3 Months Ended
Mar. 13, 2024
USD ($)
$ / shares
May 18, 2021
USD ($)
$ / shares
Mar. 31, 2024
USD ($)
day
$ / shares
Mar. 31, 2024
USD ($)
$ / shares
Mar. 31, 2023
USD ($)
Dec. 31, 2023
USD ($)
Debt Instrument [Line Items]            
Proceeds from convertible debt       $ 1,246,025 $ 0  
Outstanding aggregate principal     $ 4,275,470 4,275,470   $ 3,010,470
Purchase of capped calls $ 104,100 $ 90,100        
Option strike price (in dollars per share) | $ / shares $ 333.54 $ 370.45        
Cap price per share (in dollars per share) | $ / shares $ 503.46 $ 478.00        
2030 Convertible Notes            
Debt Instrument [Line Items]            
Conversion ratio     0.0029981      
2030 Convertible Notes | Convertible notes            
Debt Instrument [Line Items]            
Face amount of debt     $ 1,300,000 1,300,000    
Additional principal available     $ 165,000 $ 165,000    
Debt instrument, stated percentage     0.25% 0.25%    
Proceeds from convertible debt     $ 1,200,000      
Original issue discount     1.50% 1.50%    
Conversion price (in dollars per share) | $ / shares     $ 333.54 $ 333.54    
Threshold percentage of stock price trigger     130.00%      
Threshold trading days | day     20      
Threshold consecutive trading days | day     30      
Repurchase price, percentage     100.00%      
Unamortized debt issuance costs     $ 3,200 $ 3,200    
Outstanding aggregate principal     1,265,000 1,265,000    
Original issue discount     $ 22,000 $ 22,000    
Convertible Senior Notes due 2026 | Convertible notes            
Debt Instrument [Line Items]            
Debt instrument, stated percentage     0.50% 0.50%   0.50%
Outstanding aggregate principal     $ 1,273,013 $ 1,273,013   $ 1,273,013
2028 Senior Notes | Senior Notes            
Debt Instrument [Line Items]            
Debt instrument, stated percentage     3.38% 3.38%   3.38%
Outstanding aggregate principal     $ 1,000,000 $ 1,000,000   $ 1,000,000
2031 Senior Notes | Senior Notes            
Debt Instrument [Line Items]            
Debt instrument, stated percentage     3.63% 3.63%   3.63%
Outstanding aggregate principal     $ 737,457 $ 737,457   $ 737,457
v3.24.1.u1
DERIVATIVES - Description of derivatives and related hedge accounting designation (Details)
Mar. 31, 2024
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]    
Derivative Asset, Statement of Financial Position [Extensible Enumeration] Accounts receivable, net Accounts receivable, net
Derivative Liability, Statement of Financial Position [Extensible Enumeration] Accrued expenses and other current liabilities, Crypto Asset, Fair Value, Borrowings Accrued expenses and other current liabilities, Crypto Asset, Cost, Borrowings
v3.24.1.u1
DERIVATIVES - Schedule of notional amount of derivative contracts outstanding (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Accounts receivable denominated in crypto assets | Not designated as hedging instrument    
Derivative [Line Items]    
Notional amount of derivative contracts outstanding in native units $ 21,362 $ 16,335
Crypto asset borrowings | Designated as hedging instrument    
Derivative [Line Items]    
Notional amount of derivative contracts outstanding in native units 0 31,666
Crypto asset borrowings | Not designated as hedging instrument    
Derivative [Line Items]    
Notional amount of derivative contracts outstanding in native units 158,518 12,503
Obligation to return loan collateral | Not designated as hedging instrument    
Derivative [Line Items]    
Notional amount of derivative contracts outstanding in native units 75,424 0
Other payables denominated in crypto assets | Not designated as hedging instrument    
Derivative [Line Items]    
Notional amount of derivative contracts outstanding in native units $ 33,012 $ 20,092
v3.24.1.u1
DERIVATIVES - Schedule of derivative assets and liabilities (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets $ 44,214 $ 30,577
Gross Derivative Liabilities 150,104 21,913
Accounts receivable denominated in crypto assets    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets 41,263 28,065
Gross Derivative Liabilities 0 0
Crypto asset borrowings    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets 264 1
Gross Derivative Liabilities 114,551 18,812
Obligation to return loan collateral    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets 0  
Gross Derivative Liabilities 31,186  
Other payables denominated in crypto assets    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets 2,687 2,511
Gross Derivative Liabilities 4,367 3,101
Not designated as hedging instrument    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets 44,214 30,602
Gross Derivative Liabilities 150,104 8,391
Not designated as hedging instrument | Accounts receivable denominated in crypto assets    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets 41,263 28,065
Gross Derivative Liabilities 0 0
Not designated as hedging instrument | Crypto asset borrowings    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets 264 26
Gross Derivative Liabilities 114,551 5,290
Not designated as hedging instrument | Obligation to return loan collateral    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets 0  
Gross Derivative Liabilities 31,186  
Not designated as hedging instrument | Other payables denominated in crypto assets    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets 2,687 2,511
Gross Derivative Liabilities 4,367 3,101
Designated as hedging instrument    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets 0 (25)
Gross Derivative Liabilities 0 13,522
Designated as hedging instrument | Accounts receivable denominated in crypto assets    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets 0 0
Gross Derivative Liabilities 0 0
Designated as hedging instrument | Crypto asset borrowings    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets 0 (25)
Gross Derivative Liabilities 0 13,522
Designated as hedging instrument | Obligation to return loan collateral    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets 0  
Gross Derivative Liabilities 0  
Designated as hedging instrument | Other payables denominated in crypto assets    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets 0 0
Gross Derivative Liabilities $ 0 $ 0
v3.24.1.u1
DERIVATIVES - Schedule of gains (losses) recorded in income (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Not designated as hedging instrument    
Derivative [Line Items]    
Derivatives $ (115,026) $ (91,680)
Hedged Items 0 97,091
Income Statement Impact (115,026) 5,411
Crypto asset futures | Designated as hedging instrument    
Derivative [Line Items]    
Derivatives 0 (43,116)
Hedged Items 0 48,491
Income Statement Impact 0 5,375
Crypto asset borrowings | Designated as hedging instrument    
Derivative [Line Items]    
Derivatives 0 (91,714)
Hedged Items 0 48,600
Income Statement Impact 0 (43,114)
Crypto asset borrowings | Not designated as hedging instrument    
Derivative [Line Items]    
Derivatives (95,914) 0
Hedged Items 0 0
Income Statement Impact (95,914) 0
Accounts receivable denominated in crypto assets | Not designated as hedging instrument    
Derivative [Line Items]    
Derivatives 13,795 42,924
Hedged Items 0 0
Income Statement Impact 13,795 42,924
Obligation to return loan collateral | Not designated as hedging instrument    
Derivative [Line Items]    
Derivatives (31,186) 0
Hedged Items 0 0
Income Statement Impact (31,186) 0
Other payables denominated in crypto assets | Not designated as hedging instrument    
Derivative [Line Items]    
Derivatives (1,721) 439
Hedged Items 0 0
Income Statement Impact (1,721) 439
Other | Not designated as hedging instrument    
Derivative [Line Items]    
Derivatives 0 (213)
Hedged Items 0 0
Income Statement Impact $ 0 $ (213)
v3.24.1.u1
FAIR VALUE MEASUREMENTS - Schedule of fair value of assets and liabilities (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Mar. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash and cash equivalents $ 6,711,400 $ 5,139,351 $ 5,018,409
Fair Value 231,348 45,212  
Safeguarding customer crypto assets 329,506,477 192,583,060  
Derivative assets 44,214 30,577  
Crypto assets held for operations 63,600 0  
Fair Value 1,522,328    
Safeguarding customer crypto liabilities 329,506,477 192,583,060  
Derivative liabilities 150,104 21,913  
Obligation to return collateral 315,090 1,063  
Crypto assets held at cost excluded from fair value assets   404,700  
Deposits Held At Banks      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash and cash equivalents 3,500,000 1,400,000  
Customer custodial funds 307,500 1,300,000  
Cash Held At Venues      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash and cash equivalents 124,800 88,800  
Level 1 | Fair Value, Recurring      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash and cash equivalents 3,037,792 3,682,917  
Customer custodial funds 4,894,429 3,301,029  
Crypto asset loan receivables 0 0  
Fair Value 231,348 45,212  
Safeguarding customer crypto assets 0 0  
Derivative assets 0 0  
Crypto assets held for operations 150,630 74,103  
Crypto assets held as collateral 106,610 0  
Fair Value 1,522,328 330,610  
Total assets 9,943,137 7,433,871  
Safeguarding customer crypto liabilities 0 0  
Derivative liabilities 0 0  
Obligation to return collateral 106,610 0  
Total liabilities 106,610 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 asset loan receivables 196,141 22,229  
Fair Value 0 0  
Safeguarding customer crypto assets 329,506,477 192,583,060  
Derivative assets 44,214 30,577  
Crypto assets held for operations 0 0  
Crypto assets held as collateral 0 0  
Fair Value 0 0  
Total assets 329,746,832 192,635,866  
Safeguarding customer crypto liabilities 329,506,477 192,583,060  
Derivative liabilities 150,104 21,913  
Obligation to return collateral 0 0  
Total liabilities $ 329,656,581 $ 192,604,973  
v3.24.1.u1
FAIR VALUE MEASUREMENTS - Narrative (Details) - Level 2
$ in Billions
Mar. 31, 2024
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 $ 1.4
2030 Convertible Notes | Convertible notes  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Fair value of notes 1.3
2028 and 2031 Senior Notes | Senior Notes  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Fair value of notes $ 1.5
v3.24.1.u1
STOCK-BASED COMPENSATION - Schedule of stock option activity (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2024
Dec. 31, 2023
Options Outstanding    
Beginning balance (in shares) 28,697  
Exercised (in shares) (2,338)  
Forfeited and cancelled (in shares) (24)  
Ending balance (in shares) 26,335 28,697
Weighted Average Exercise Price per Share    
Options outstanding, weighted average exercise price per share - Beginning balance (in dollars per share) $ 25.01  
Options exercised, weighted average exercise price per share (in dollars per share) 18.84  
Options forfeited and cancelled, weighted average exercise price per share (in dollars per share) 30.36  
Options outstanding, weighted average exercise price per share - Ending balance (in dollars per share) $ 25.55 $ 25.01
Stock Option Activity, Additional Disclosures    
Options outstanding, Weighted average remaining contractual term 5 years 10 months 24 days 6 years 1 month 6 days
Options outstanding, Aggregate intrinsic value $ 6,309,011 $ 4,295,055
Options vested and exercisable, Number of options (in shares) 20,201  
Options vested and exercisable , Weighted average exercise price per share (in dollars per share) $ 26.19  
Options vested and exercisable, Weighted average remaining contractual term 5 years 9 months 18 days  
Options vested and exercisable, Aggregate intrinsic value $ 4,826,583  
Options vested and expected to vest, Number of options (in shares) 20,211  
Options vested and expected to vest, Weighted average exercise price per share (in dollars per share) $ 26.18  
Options vested and expected to vest, Weighted average remaining contractual term 5 years 9 months 18 days  
Options vested and expected to vest, Aggregate intrinsic value $ 4,829,027  
v3.24.1.u1
STOCK-BASED COMPENSATION - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total unrecognized compensation cost related to unvested stock options $ 56,000  
Stock based compensation expense 224,504 $ 282,902
Share based payment arrangement, capitalized $ 11,100 $ 14,100
Class A common stock    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Assumed options from acquisition (in shares) 0  
Stock options    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Unrecognized compensation cost, weighted-average period of recognition 2 years 3 months 18 days  
RSUs    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Unrecognized compensation cost, weighted-average period of recognition 1 year 2 months 12 days  
Total unrecognized compensation cost $ 782,200  
Granted (in shares) 5,139,000  
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  
PRSUs    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Unrecognized compensation cost, weighted-average period of recognition 1 year 8 months 12 days  
PRSUs | Share-based Payment Arrangement, Tranche Two    
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]    
Total unrecognized compensation cost $ 13,000  
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 3 months 18 days  
Total unrecognized compensation cost $ 24,300  
v3.24.1.u1
STOCK-BASED COMPENSATION - Schedule of restricted stock unit and restricted stock activity (Details)
shares in Thousands
 3 Months Ended
Mar. 31, 2024
$ / shares
shares
RSUs  
Number of Shares  
Beginning balance (in shares) | shares 3,016
Granted (in shares) | shares 5,139
Vested (in shares) | shares (1,580)
Forfeited and cancelled (in shares) | shares (212)
Ending balance (in shares) | shares 6,363
Weighted-Average Grant Date Fair Value Per Share  
Beginning balance, weighted-average grant date fair value per share (in dollars per share) | $ / shares $ 108.07
Granted, Weighted-average grant date fair value per share (in dollars per share) | $ / shares 142.75
Vested, Weighted-average grant date fair value per share (in dollars per share) | $ / shares 131.48
Forfeited and cancelled, Weighted-average grant date fair value per share (in dollars per share) | $ / shares 125.33
Ending balance, weighted-average grant date fair value per share (in dollars per share) | $ / shares $ 129.69
Restricted common stock  
Number of Shares  
Beginning balance (in shares) | shares 543
Vested (in shares) | shares (182)
Forfeited and cancelled (in shares) | shares (4)
Ending balance (in shares) | shares 357
Weighted-Average Grant Date Fair Value Per Share  
Beginning balance, weighted-average grant date fair value per share (in dollars per share) | $ / shares $ 114.22
Vested, Weighted-average grant date fair value per share (in dollars per share) | $ / shares 129.03
Forfeited and cancelled, Weighted-average grant date fair value per share (in dollars per share) | $ / shares 267.48
Ending balance, weighted-average grant date fair value per share (in dollars per share) | $ / shares $ 104.97
v3.24.1.u1
STOCK-BASED COMPENSATION - Schedule of performance restricted stock unit (Details) - PRSUs
shares in Thousands
 3 Months Ended
Mar. 31, 2024
$ / shares
shares
Number of Shares  
Beginning balance (in shares) | shares 804
Vested (in shares) | shares (80)
Ending balance (in shares) | shares 724
Weighted-Average Grant Date Fair Value Per Share  
Beginning balance, weighted-average grant date fair value per share (in dollars per share) | $ / shares $ 55.42
Vested, 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
v3.24.1.u1
STOCK-BASED COMPENSATION - Schedule of stock based compensation (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Stock based compensation expense $ 224,504 $ 282,902
Technology and development    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Stock based compensation expense 139,830 122,696
Sales and marketing    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Stock based compensation expense 16,623 14,209
General and administrative    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Stock based compensation expense 68,051 61,955
Restructuring    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Stock based compensation expense $ 0 $ 84,042
v3.24.1.u1
OTHER (INCOME) EXPENSE, NET (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Other Income and Expenses [Abstract]    
Foreign exchange losses, net $ 1,651 $ 13,878
Strategic investment losses, net 849 6,319
Gain (Loss) On Crypto Asset Loans Receivable (25,526) 0
Gains on other financial instruments, net (13,186) 0
Other (9,393) 68
Other (income) expense, net $ (45,605) $ 20,265
v3.24.1.u1
INCOME TAXES (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Dec. 31, 2023
Income Tax Disclosure [Abstract]      
Effective income tax rate 18.20% 52.40%  
U.S. statutory rate 21.00%    
Deferred tax assets $ 879,671   $ 1,272,233
Deferred tax liabilities 177,900    
Deferred income taxes 214,600    
Valuation allowance     8,700
Capital losses - realized / unrealized     $ 207,600
Partial valuation allowance release $ 8,700    
v3.24.1.u1
NET INCOME (LOSS) PER SHARE - Schedule of net income per share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Numerator    
Net income (loss) $ 1,176,245 $ (78,896)
Less: Income allocated to participating securities (766) 0
Net income (loss) attributable to common stockholders, basic $ 1,175,479 $ (78,896)
Denominator    
Weighted-average shares of common stock used to compute net loss per share attributable to common stockholders, basic (in shares) 242,793 231,489
Net loss per share attributable to common stockholders, basic (in dollars per share) $ 4.84 $ (0.34)
Numerator    
Net income (loss) $ 1,176,245 $ (78,896)
Less: Income allocated to participating securities (697) 0
Add: Interest on convertible notes, net of tax 2,531 0
Net income (loss) attributable to common stockholders, diluted $ 1,178,079 $ (78,896)
Denominator    
Weighted-average shares of common stock used to compute net loss per share attributable to common stockholders, basic (in shares) 242,793 231,489
Convertible notes (in shares) 4,145 0
Weighted-average shares of common stock used to compute net (loss) income per share attributable to common stockholders, diluted (in shares) 267,945 231,489
Net income loss per share attributable to common stockholders, diluted (in dollars per share) $ 4.40 $ (0.34)
Stock options    
Denominator    
Weighted-average effect of potentially dilutive securities (in shares) 18,534 0
RSUs    
Denominator    
Weighted-average effect of potentially dilutive securities (in shares) 2,164 0
Restricted common stock    
Denominator    
Weighted-average effect of potentially dilutive securities (in shares) 309 0
v3.24.1.u1
NET INCOME (LOSS) PER SHARE - Schedule of potentially dilutive shares (Details) - shares
shares in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Number of shares excluded in the computation of diluted earnings per share 8,260 47,648
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 6,671 31,274
ESPP    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Number of shares excluded in the computation of diluted earnings per share 733 822
PRSUs    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Number of shares excluded in the computation of diluted earnings per share 322 0
RSUs    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Number of shares excluded in the computation of diluted earnings per share 292 10,592
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 242 1,004
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 0 3,880
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
v3.24.1.u1
COMMITMENTS AND CONTINGENCIES (Details)
$ in Millions
 1 Months Ended 2 Months Ended
Jan. 31, 2023
USD ($)
Aug. 31, 2021
class_action_case
Commitments and Contingencies Disclosure [Abstract]    
Number of purported securities class actions filed | class_action_case   3
Penalty awarded $ 50.0  
Amount to be invested in company compliance function $ 50.0  
v3.24.1.u1
RELATED PARTY TRANSACTIONS (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Dec. 31, 2023
Related Party Transaction [Line Items]      
Revenue $ 1,637,570 $ 772,529  
Safeguarding customer crypto assets 329,506,477   $ 192,583,060
Safeguarding customer crypto liabilities 329,506,477   192,583,060
Customer custodial cash liabilities 5,201,906   4,570,845
Related Party      
Related Party Transaction [Line Items]      
Revenue 6,900 3,100  
Amounts receivable from customers, net of allowance 4,200   3,400
Safeguarding customer crypto assets 13,000,000   8,800,000
Safeguarding customer crypto liabilities 13,000,000   8,800,000
Custodial cash funds, current 4,500   348,000
Customer custodial cash liabilities 4,500   348,000
Investments and other assets 100   4,000
Professional and consulting services 1,100 $ 0  
Accounts payable $ 1,300   $ 0
v3.24.1.u1
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION - Changes in Operating Assets and Liabilities (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Supplemental Cash Flow Elements [Abstract]    
USDC $ (299,507) $ 497,303
Accounts receivable (108,802) (67,126)
Deposits in transit (21,260) (15,262)
Income taxes, net 41,613 (7,608)
Other current and non-current assets (3,856) (14,892)
Other current and non-current liabilities (82,190) (77,088)
Net changes in operating assets and liabilities $ (474,002) $ 315,327
v3.24.1.u1
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($)
$ in Thousands
Mar. 31, 2024
Dec. 31, 2023
Mar. 31, 2023
Dec. 31, 2022
Supplemental Cash Flow Elements [Abstract]        
Cash and cash equivalents $ 6,711,400 $ 5,139,351 $ 5,018,409  
Restricted cash 33,499 22,992 26,712  
Customer custodial funds 5,002,888   5,293,029  
Total cash, cash equivalents, and restricted cash $ 11,747,787 $ 9,555,448 $ 10,338,150 $ 9,429,646
v3.24.1.u1
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION - Non-cash Investing and Financing Activities (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2024
Mar. 31, 2023
Supplemental Cash Flow Elements [Abstract]    
Crypto assets borrowed $ 191,436 $ 170,599
Crypto assets borrowed repaid with crypto assets 77,451 200,151
Crypto asset loans originated 424,248 0
Crypto asset loans repaid 286,475 0
Non-cash assets received as collateral 90,798 19,116
Non-cash assets received as collateral returned 15,374 45,990
Non-cash assets pledged as collateral 42,020 30,774
Non-cash assets pledged as collateral returned 20,804 10,743
Non-cash consideration paid for business combinations 0 51,494
Realized gains on crypto assets held for investment 0 48,491
Cumulative-effect adjustment due to the adoption of ASU 2023-08 $ 561,489 $ 0