COINBASE GLOBAL, INC., 10-Q filed on 11/3/2022
Quarterly Report
v3.22.2.2
Cover Page - shares
 9 Months Ended
Sep. 30, 2022
Oct. 27, 2022
Entity Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Sep. 30, 2022  
Document Transition Report false  
Entity File Number 001-04321  
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, $0.00001 par value per share  
Trading Symbol COIN  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Non-accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Central Index Key 0001679788  
Amendment Flag false  
Document Fiscal Year Focus 2022  
Document Fiscal Period Focus Q3  
Current Fiscal Year End Date --12-31  
Class A common stock    
Entity Information [Line Items]    
Entity Common Stock, Shares Outstanding   178,849,467
Class B common stock    
Entity Information [Line Items]    
Entity Common Stock, Shares Outstanding   48,116,152
v3.22.2.2
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Sep. 30, 2022
Dec. 31, 2021
Current assets:    
Cash and cash equivalents $ 5,006,584 $ 7,123,478
Restricted cash 23,113 30,951
Customer custodial cash 6,591,105 10,526,233
Customer crypto assets [1] 95,113,124 0
USDC 368,121 100,096
Accounts and loans receivable, net of allowance 240,354 396,025
Income tax receivable 60,522 61,231
Prepaid expenses and other current assets 277,044 135,849
Total current assets 107,679,967 18,373,863
Crypto assets held 623,073 988,193
Lease right-of-use assets 76,465 98,385
Property and equipment, net 170,922 59,230
Goodwill 1,073,906 625,758
Intangible assets, net 161,669 176,689
Other non-current assets 1,382,361 952,307
Total assets 111,168,363 21,274,425
Current liabilities:    
Customer custodial cash liabilities 6,357,657 10,480,612
Customer crypto liabilities [2] 95,113,124 0
Accounts payable 61,514 39,833
Accrued expenses and other current liabilities 298,101 439,559
Crypto asset borrowings 209,678 426,665
Lease liabilities, current 33,025 32,366
Total current liabilities 102,073,099 11,419,035
Lease liabilities, non-current 50,167 74,078
Long-term debt 3,391,237 3,384,795
Other non-current liabilities 27,545 14,828
Total liabilities 105,542,048 14,892,736
Commitments and contingencies (Note 18)
Stockholders’ equity:    
Additional paid-in capital 3,380,330 2,034,658
Accumulated other comprehensive loss (36,493) (3,395)
Retained earnings 2,282,476 4,350,424
Total stockholders’ equity 5,626,315 6,381,689
Total liabilities, convertible preferred stock and stockholders’ equity 111,168,363 21,274,425
Class A common stock    
Stockholders’ equity:    
Common stock 2 2
Class B common stock    
Stockholders’ equity:    
Common stock $ 0 $ 0
[1] Safeguarding assets
[2] Safeguarding liabilities
v3.22.2.2
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares
Sep. 30, 2022
Dec. 31, 2021
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) 178,489,000 168,807,000
Common stock, outstanding (in shares) 178,489,000 168,807,000
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) 48,116,000 48,310,000
Common stock, outstanding (in shares) 48,116,000 48,310,000
v3.22.2.2
Condensed Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Revenue:        
Revenue $ 590,339 $ 1,311,908 $ 2,565,100 $ 5,340,981
Operating expenses:        
Transaction expense 101,876 197,251 546,889 766,743
Technology and development 556,338 356,264 1,736,251 831,950
Sales and marketing 75,888 105,395 416,986 419,117
General and administrative 339,157 242,642 1,222,904 612,068
Restructuring (1,232) 0 41,221 0
Other operating expense, net 74,796 118,548 756,185 556,857
Total operating expenses 1,146,823 1,020,100 4,720,436 3,186,735
Operating (loss) income (556,484) 291,808 (2,155,336) 2,154,246
Interest expense 21,507 6,972 67,301 7,720
Other expense, net 65,699 13,976 271,067 10,119
(Loss) income before income taxes (643,690) 270,860 (2,493,704) 2,136,407
Benefit from income taxes (99,055) (135,240) (425,756) (647,505)
Net (loss) income (544,635) 406,100 (2,067,948) 2,783,912
Net (loss) income attributable to common stockholders:        
Basic (544,635) 402,343 (2,067,948) 2,241,790
Diluted $ (544,635) $ 405,340 $ (2,073,343) $ 2,338,407
Net (loss) income per share attributable to common stockholders:        
Basic (in dollars per share) $ (2.43) $ 1.92 $ (9.37) $ 13.58
Diluted (in dollars per share) $ (2.43) $ 1.62 $ (9.39) $ 11.19
Weighted-average shares of common stock used to compute net (loss) income per share attributable to common stockholders:        
Basic (in shares) 223,916 209,604 220,816 165,045
Diluted (in shares) 223,916 250,536 220,856 209,052
Net revenue        
Revenue:        
Revenue $ 576,375 $ 1,234,736 $ 2,543,869 $ 4,864,727
Other revenue        
Revenue:        
Revenue $ 13,964 $ 77,172 $ 21,231 $ 476,254
v3.22.2.2
Condensed Consolidated Statements of Comprehensive (Loss) Income - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Statement of Comprehensive Income [Abstract]        
Net (loss) income $ (544,635) $ 406,100 $ (2,067,948) $ 2,783,912
Other comprehensive loss:        
Translation adjustment, net of tax (18,310) (3,206) (33,098) (6,688)
Comprehensive (loss) income $ (562,945) $ 402,894 $ (2,101,046) $ 2,777,224
v3.22.2.2
Condensed Consolidated Statements of Changes in Convertible Preferred Stock and Stockholders' Equity - USD ($)
shares in Thousands, $ in Thousands
Total
Convertible Preferred Stock
Common Stock
Additional Paid-In Capital
Accumulated Other Comprehensive (Loss) Income
Retained Earnings
Beginning balance (in shares) at Dec. 31, 2020   112,878        
Beginning balance at Dec. 31, 2020   $ 562,467        
Ending balance (in shares) at Sep. 30, 2021   0        
Ending balance at Sep. 30, 2021   $ 0        
Beginning balance (in shares) at Dec. 31, 2020     73,108      
Beginning balance at Dec. 31, 2020 $ 963,584   $ 0 $ 231,024 $ 6,256 $ 726,304
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Issuance of common stock upon exercise of stock options, net of repurchases (in shares)     22,257      
Issuance of common stock upon exercise of stock options, net of repurchases 181,025     181,025    
Stock-based compensation expense 559,652     559,652    
Issuance of equity instruments as consideration for business combination (in shares)     3,891      
Issuance of equity instruments as consideration for business combinations 509,379     509,379    
Conversion of preferred stock (in shares)   (112,878) (112,878)      
Conversion of preferred stock 562,467 $ (562,467) $ 2 562,465    
Issuance of common stock from exercise of warrants (in shares)     412      
Issuance of shares from exercise of warrants 433     433    
Issuance of common stock upon settlement of RSUs and restricted common stock, net of shares withheld (in shares)     1,116      
Issuance of common stock upon settlement of RSUs and restricted common stock, net of shares withheld (103,136)     (103,136)    
Purchase of capped calls (90,131)     (90,131)    
Comprehensive loss (6,688)       (6,688)  
Net (loss) income 2,783,912         2,783,912
Ending balance (in shares) at Sep. 30, 2021     213,662      
Ending balance at Sep. 30, 2021 5,360,497   $ 2 1,850,711 (432) 3,510,216
Beginning balance (in shares) at Jun. 30, 2021   0        
Beginning balance at Jun. 30, 2021   $ 0        
Ending balance (in shares) at Sep. 30, 2021   0        
Ending balance at Sep. 30, 2021   $ 0        
Beginning balance (in shares) at Jun. 30, 2021     209,876      
Beginning balance at Jun. 30, 2021 4,623,425   $ 2 1,516,533 2,774 3,104,116
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Issuance of common stock upon exercise of stock options, net of repurchases (in shares)     2,964      
Issuance of common stock upon exercise of stock options, net of repurchases 43,221     43,221    
Stock-based compensation expense 264,941     264,941    
Issuance of equity instruments as consideration for business combination (in shares)     211      
Issuance of equity instruments as consideration for business combinations 77,482     77,482    
Issuance of common stock upon settlement of RSUs and restricted common stock, net of shares withheld (in shares)     611      
Issuance of common stock upon settlement of RSUs and restricted common stock, net of shares withheld (51,466)     (51,466)    
Comprehensive loss (3,206)       (3,206)  
Net (loss) income 406,100         406,100
Ending balance (in shares) at Sep. 30, 2021     213,662      
Ending balance at Sep. 30, 2021 5,360,497   $ 2 1,850,711 (432) 3,510,216
Beginning balance (in shares) at Dec. 31, 2021   0        
Beginning balance at Dec. 31, 2021   $ 0        
Ending balance (in shares) at Sep. 30, 2022   0        
Ending balance at Sep. 30, 2022   $ 0        
Beginning balance (in shares) at Dec. 31, 2021     217,117      
Beginning balance at Dec. 31, 2021 $ 6,381,689   $ 2 2,034,658 (3,395) 4,350,424
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Issuance of common stock upon exercise of stock options, net of repurchases (in shares) 3,012   3,052      
Issuance of common stock upon exercise of stock options, net of repurchases $ 45,260     45,260    
Stock-based compensation expense 1,232,815     1,232,815    
Issuance of equity instruments as consideration for business combination (in shares)     1,663      
Issuance of equity instruments as consideration for business combinations 314,356     314,356    
Issuance of common stock upon settlement of RSUs and restricted common stock, net of shares withheld (in shares)     4,618      
Issuance of common stock upon settlement of RSUs and restricted common stock, net of shares withheld (268,746)     (268,746)    
Issuance of common stock under the Employee Stock Purchase Plan (shares)     155      
Issuance of common stock under the Employee Stock Purchase Plan 14,863     14,863    
Other 7,124     7,124    
Comprehensive loss (33,098)       (33,098)  
Net (loss) income (2,067,948)         (2,067,948)
Ending balance (in shares) at Sep. 30, 2022     226,605      
Ending balance at Sep. 30, 2022 5,626,315   $ 2 3,380,330 (36,493) 2,282,476
Beginning balance (in shares) at Jun. 30, 2022   0        
Beginning balance at Jun. 30, 2022   $ 0        
Ending balance (in shares) at Sep. 30, 2022   0        
Ending balance at Sep. 30, 2022   $ 0        
Beginning balance (in shares) at Jun. 30, 2022     224,398      
Beginning balance at Jun. 30, 2022 5,813,389   $ 2 3,004,459 (18,183) 2,827,111
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Issuance of common stock upon exercise of stock options, net of repurchases (in shares)     812      
Issuance of common stock upon exercise of stock options, net of repurchases 10,318     10,318    
Stock-based compensation expense 417,721     417,721    
Issuance of common stock upon settlement of RSUs and restricted common stock, net of shares withheld (in shares)     1,395      
Issuance of common stock upon settlement of RSUs and restricted common stock, net of shares withheld (55,613)     (55,613)    
Other 3,445     3,445    
Comprehensive loss (18,310)       (18,310)  
Net (loss) income (544,635)         (544,635)
Ending balance (in shares) at Sep. 30, 2022     226,605      
Ending balance at Sep. 30, 2022 $ 5,626,315   $ 2 $ 3,380,330 $ (36,493) $ 2,282,476
v3.22.2.2
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Cash flows from operating activities    
Net (loss) income $ (2,067,948) $ 2,783,912
Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities:    
Depreciation and amortization 113,721 40,633
Crypto asset impairment expense 689,077 234,023
Investment impairment expense 70,866 0
Other impairment expense 9,071 0
Stock-based compensation expense 1,135,078 558,157
Provision for transaction losses and doubtful accounts (7,599) 14,816
Loss on disposal of property and equipment 0 361
Deferred income taxes (444,225) (572,044)
Unrealized loss on foreign exchange 192,253 16,084
Fair value gain on foreign exchange derivatives (22,935) 0
Non-cash lease expense 23,374 27,151
Change in fair value of contingent consideration (7,175) (924)
Realized gain on crypto assets (34,274) (125,822)
Crypto assets received as revenue (376,990) (661,254)
Crypto asset payments for expenses 332,897 465,157
Fair value loss (gain) on derivatives 3,351 (23,823)
Amortization of debt discount and issuance costs 7,042 2,420
Loss (gain) on investments 1,118 (14,209)
Changes in operating assets and liabilities:    
USDC (298,236) (56,710)
Accounts and loans receivable 32,211 37,244
Income taxes, net 4,785 (95,756)
Other current and non-current assets (104,801) (26,331)
Customer custodial cash liabilities (3,977,293) 4,938,326
Accounts payable 24,667 17,393
Lease liabilities (7,758) (18,899)
Other current and non-current liabilities (107,553) 196,806
Net cash (used in) provided by operating activities (4,817,276) 7,736,711
Cash flows from investing activities    
Purchase of property and equipment (3,747) (1,628)
Proceeds from sale of property and equipment 0 31
Capitalized internal-use software development costs (47,831) (15,507)
Business combinations, net of cash acquired (186,150) (39,405)
Purchase of investments (57,716) (251,118)
Purchase of assembled workforce 0 (24,000)
Proceeds from settlement of investments 1,497 0
Purchase of crypto assets held (1,339,689) (1,479,091)
Disposal of crypto assets held 894,147 1,268,801
Loans originated (189,137) (169,325)
Proceeds from repayment of loans 290,928 66,827
Net cash used in investing activities (637,698) (644,415)
Cash flows from financing activities    
Issuance of common stock upon exercise of stock options, net of repurchases 40,978 174,949
Taxes paid related to net share settlement of equity awards (268,746) (103,136)
Proceeds received under the ESPP 16,064 11,532
Other financing activities 3,679 0
Issuance of shares from exercise of warrants 0 433
Issuance of convertible senior notes, net 0 1,403,753
Issuance of senior notes, net 0 1,976,011
Purchase of capped calls 0 (90,131)
Proceeds from short-term borrowings 149,400 20,000
Repayment of short-term borrowings (170,000) 0
Net cash (used in) provided by financing activities (228,625) 3,393,411
Net (decrease) increase in cash, cash equivalents, and restricted cash (5,683,599) 10,485,707
Effect of exchange rates on cash, cash equivalents, and restricted cash (376,261) (1,111)
Cash, cash equivalents, and restricted cash, beginning of period 17,680,662 4,856,029
Cash, cash equivalents, and restricted cash, end of period 11,620,802 15,340,625
Cash, cash equivalents, and restricted cash consisted of the following:    
Cash and cash equivalents 5,006,584 6,352,775
Restricted cash 23,113 30,884
Customer custodial cash 6,591,105 8,956,966
Total cash, cash equivalents, and restricted cash 11,620,802 15,340,625
Supplemental disclosure of cash flow information    
Cash paid during the period for interest 43,630 0
Cash paid during the period for income taxes 17,762 53,426
Operating cash outflows for amounts included in the measurement of operating lease liabilities 10,845 16,781
Supplemental schedule of non-cash investing and financing activities    
Unsettled purchases of property and equipment 177 974
Right-of-use assets obtained in exchange for operating lease obligations 3,059 26,672
Non-cash consideration paid for business combinations 324,925 535,989
Purchase of crypto assets and investments with non-cash consideration 17,898 4,940
Redemption of investments with non-cash consideration 5,000 0
Crypto assets borrowed 728,490 292,635
Crypto assets borrowed repaid with crypto assets $ 1,182,479 $ 59,348
v3.22.2.2
NATURE OF OPERATIONS
 9 Months Ended
Sep. 30, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
NATURE OF OPERATIONS NATURE OF OPERATIONS
Coinbase, Inc. was founded in 2012. In April 2014, in connection with a corporate reorganization, Coinbase, Inc. became a wholly-owned subsidiary of Coinbase Global, Inc. (together with its consolidated subsidiaries, the “Company”).
The Company operates globally and is a leading provider of end-to-end financial infrastructure and technology for the cryptoeconomy. The Company offers retail users the primary financial account for the cryptoeconomy, institutions a state of the art marketplace with a deep pool of liquidity for transacting in crypto assets, and ecosystem partners technology and services that enable them to build crypto-based applications and securely accept crypto assets as payment.
The Company is a remote-first company. Accordingly, the Company does not maintain a headquarters.
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”).
v3.22.2.2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 9 Months Ended
Sep. 30, 2022
Accounting Policies [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of presentation and principles of consolidation
The accompanying condensed consolidated financial statements of the Company are unaudited. These unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) on the same basis as the audited consolidated financial statements, and in management’s opinion, reflect all adjustments, consisting only of normal, recurring adjustments, that are necessary for the fair statement of the Company’s condensed consolidated financial statements for the periods presented. The unaudited condensed consolidated results of operations for the three and nine months ended September 30, 2022 are not necessarily indicative of the results to be expected for the full year or any other period.
These condensed consolidated financial statements and accompanying notes should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s annual report on Form 10-K for the year ended December 31, 2021 filed with the Securities and Exchange Commission (the “SEC”) on February 25, 2022 (the “Annual Report”).
These condensed consolidated financial statements include the accounts of the Company and its subsidiaries. The Company’s subsidiaries are entities in which the Company holds, directly or indirectly, more than 50% of the voting rights, or where it exercises control. Certain subsidiaries of the Company have a basis of presentation different from GAAP. For the purposes of these unaudited condensed consolidated financial statements, the basis of presentation of such subsidiaries is converted to GAAP. All intercompany accounts and transactions have been eliminated in consolidation.
There were no changes to the significant accounting policies or recent accounting pronouncements that were disclosed in Note 2. Summary of Significant Accounting Policies to the audited consolidated financial statements included in the Annual Report, other than as discussed below.
Reclassifications
Certain prior period amounts have been reclassified in order to conform with the current period presentation. These reclassifications have no impact on the Company’s previously reported consolidated net income.
Use of estimates
The preparation of the condensed consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions in the Company’s condensed consolidated financial statements and notes thereto.
Significant estimates and assumptions include the determination of the recognition, measurement, and valuation of current and deferred income taxes; the fair value of stock-based awards issued; the useful lives of long-lived assets; the impairment of long-lived assets; the valuation of privately-held strategic investments, including impairments; the Company’s incremental borrowing rate; the fair value of customer crypto assets and liabilities; the fair value of assets acquired and liabilities assumed in business combinations, including contingent consideration arrangements; the fair value of derivatives and related hedges; the fair value of long-term debt; assessing the likelihood of adverse outcomes from claims and disputes; and loss provisions.
Actual results and outcomes may differ from management’s estimates and assumptions due to risks and uncertainties. To the extent that there are material differences between these estimates and actual results, the Company’s condensed consolidated financial statements will be affected. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the result of which forms the basis for making judgments about the carrying values of assets and liabilities.
Customer custodial cash and customer custodial cash liabilities
Customer custodial cash represents restricted cash and cash equivalents maintained in segregated Company bank accounts that are held for the exclusive benefit of customers. Customer custodial cash liabilities represent cash deposits held by customers in their fiat wallets and unsettled deposits and withdrawals. The Company restricts the use of the assets underlying the customer custodial cash to meet regulatory requirements and classifies the assets as current based on their purpose and availability to fulfill the Company’s direct obligation under customer custodial cash liabilities.
Certain jurisdictions where the Company operates require the Company to hold eligible liquid assets, as defined by applicable regulatory requirements and commercial law in these jurisdictions, equal to at least 100% of the aggregate amount of all customer custodial cash liabilities. Depending on the jurisdiction, eligible liquid assets can include cash and cash equivalents, customer custodial cash, and in-transit customer receivables. As of September 30, 2022 and December 31, 2021, the Company’s eligible liquid assets were greater than the aggregate amount of customer custodial cash liabilities.
Concentration of credit risk
The Company’s cash and cash equivalents, restricted cash, customer custodial cash, and accounts and loans receivable are potentially subject to concentration of credit risk. Cash and cash equivalents, restricted cash, and customer custodial cash are placed with financial institutions which are of high credit quality. The Company invests cash and cash equivalents, and customer custodial accounts primarily in highly liquid, highly rated instruments which are uninsured. The Company may also have deposit balances with financial institutions which exceed the Federal Deposit Insurance Corporation insurance limit of $250,000. The Company also holds cash at crypto trading venues and performs a regular assessment of these crypto trading venues as part of its risk management process.
The Company held $368.1 million and $100.1 million of USD Coin (“USDC”) as of September 30, 2022 and December 31, 2021, respectively. The issuer of USDC reported that, as of September 30, 2022, underlying reserves were held in cash and short-duration U.S. Treasuries within segregated accounts for the benefit of USDC holders.
As of September 30, 2022 and December 31, 2021, the Company had one customer and no customers, respectively, who accounted for more than 10% of the Company’s accounts and loans receivable, net. As of September 30, 2022 and December 31, 2021, the Company had no payment processors or bank partners representing more than 10% of accounts and loans receivable, net.
During the three and nine months ended September 30, 2022 and September 30, 2021, no customer accounted for more than 10% of total revenue.
Derivative contracts
Derivative contracts derive their value from underlying asset prices, other inputs or a combination of these factors. Derivative contracts are recognized as either assets or liabilities in the condensed consolidated balance sheets at fair value, with changes in fair value recognized in other operating expense, net.
The Company enters into arrangements that result in obtaining the right to receive or obligation to deliver a fixed amount of crypto assets in the future. These are hybrid instruments, consisting of a debt host contract that is initially measured at the fair value of the underlying crypto assets and is subsequently carried at amortized cost, and an embedded forward feature based on the changes in the fair value of the underlying crypto asset. The embedded forward is bifurcated from the host contract, and is subsequently measured at fair value.
The Company also enters into foreign exchange forward contracts that act as economic hedges against the impact of changes in Euro on the Company’s intercompany transactions. The Company records changes in fair value of the forward contracts as part of other expense, net in the consolidated statements of operations.
Derivatives designated as hedges
The Company applies hedge accounting to certain derivatives executed for risk management purposes. To qualify for hedge accounting, a derivative must be highly effective at reducing the risk associated with the exposure being hedged. The Company uses fair value hedges primarily to hedge the fair value exposure of crypto asset prices. For qualifying fair value hedges, the changes in the fair value of the derivative and the fair value of the hedged item are recognized in current-period earnings in other operating expense, net in the condensed consolidated statements of operations. Derivative amounts affecting earnings are recognized in the same line item as the earnings effect of the hedged item.
Customer crypto assets and liabilities
Customer crypto assets and liabilities represent the Company’s obligation to safeguard customers’ crypto assets in digital wallets on the Company’s platform. The Company safeguards these assets for customers and is obligated to safeguard them from loss, theft, or other misuse. The Company recognizes customer crypto liabilities and corresponding customer crypto assets, on initial recognition and at each reporting date, at fair value of the crypto assets. Any loss, theft, or other misuse would impact the measurement of customer crypto assets.
Recent accounting pronouncements
Recently adopted accounting pronouncements
On October 28, 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2021-08, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (“ASU 2021-08”). ASU 2021-08 amends Accounting Standards Codification 805 (“ASC 805”) to require acquiring entities to apply Topic 606 - Revenue from Contracts with Customers to recognize and measure contract assets and contract liabilities in a business combination. The Company early adopted the standard on January 1, 2022. The adoption of the standard did not have a material impact on the Company’s condensed consolidated financial statements.
On March 31, 2022, the SEC issued Staff Accounting Bulletin No. 121 (“SAB 121”). SAB 121 sets out interpretive guidance from the staff of the SEC regarding the accounting for obligations to safeguard crypto assets that an entity holds for its customers. Safeguarding is defined as taking actions to secure customer crypto assets and the associated cryptographic key information and protecting them from loss, theft, or other misuse. The guidance requires an entity to recognize a liability for the obligation to safeguard the users’ assets, and recognize an associated asset for the crypto assets safeguarded. Both the liability and asset should be measured initially and subsequently at the fair value of the crypto assets being safeguarded. The guidance also requires additional disclosures related to the nature and amount of crypto assets that the entity is responsible for holding for its customers, with separate disclosure for each significant crypto asset, and the vulnerabilities the entity has due to any concentration in such activities. The Company has adopted this guidance as of June 30, 2022 with retrospective application as of January 1, 2022. The balances as of January 1, 2022 for the customer crypto assets and customer crypto liabilities were both $267.6 billion.
Accounting pronouncements pending adoption
On June 30, 2022, FASB issued Accounting Standards Update No. 2022-03, Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (“ASU 2022-03”). ASU 2022-03 clarifies that a contractual sale restriction prohibiting the sale of an equity security is a characteristic of the reporting entity holding the equity security and is not included in the equity security's unit of account. The standard requires specific disclosures related to equity securities that are subject to contractual sale restrictions, including (1) the fair value of such equity securities reflected in the balance sheet, (2) the nature and remaining duration of the corresponding restrictions, and (3) any circumstances that could cause a lapse in the restrictions. The new standard is effective for the Company for its fiscal year beginning January 1, 2024, with early adoption permitted. The Company is currently evaluating the impact of adopting the standard on the Company’s consolidated financial statements.
v3.22.2.2
RESTRUCTURING
 9 Months Ended
Sep. 30, 2022
Restructuring and Related Activities [Abstract]  
RESTRUCTURING RESTRUCTURING
In June 2022, the Company announced and completed a restructuring impacting approximately 18% of the Company’s headcount. This strategic reduction of the existing global workforce was intended to manage the Company’s operating expenses in response to market conditions and ongoing business prioritization efforts. As a result, approximately 1,100 employees in various departments and locations were terminated. As part of their termination, they were given separation pay and other personnel benefits.
The following expenses were recognized within restructuring expenses in the condensed consolidated statements of operations during the three and nine months ended September 30, 2022 (in thousands). The Company does not expect to incur any additional charges in connection with this restructuring.
Three Months Ended September 30, 2022Nine Months Ended September 30, 2022Cumulative Costs Incurred to Date
Separation pay$— $39,259 $39,259 
Other personnel costs(1)
(1,232)1,962 1,962 
Total$(1,232)$41,221 $41,221 
__________________
(1)The negative adjustment of $1.2 million during the three months ended September 30, 2022 is due to the release of accruals for certain other personnel costs recorded as of June 30, 2022 which were not utilized.
The following table summarizes the balance of the restructuring reserve and the changes in the reserve as of and for the nine months ended September 30, 2022 (in thousands):
Expenses IncurredPaymentsAdjustment to Other Personnel CostsAccrued Balance as of September 30, 2022
Separation pay$39,259 $(37,940)$— $1,319 
Other personnel costs3,194 (1,480)(1,232)482 
Total$42,453 $(39,420)$(1,232)$1,801 
v3.22.2.2
ACQUISITIONS
 9 Months Ended
Sep. 30, 2022
Business Combination and Asset Acquisition [Abstract]  
ACQUISITIONS ACQUISITIONS2022 Acquisitions
Unbound Security, Inc.
On January 4, 2022, the Company completed the acquisition of Unbound Security, Inc. (“Unbound”) by acquiring all issued and outstanding shares of capital stock and stock options of Unbound. Unbound is a pioneer in a number of cryptographic security technologies, which the Company believes will play a key role in the Company’s product and security roadmap.
In accordance with ASC 805, Business Combinations, the acquisition was accounted for as a business combination under the acquisition method. The purchase consideration was allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date with the excess recorded as goodwill, none of which is expected to be deductible for tax purposes. The goodwill balance is primarily attributed to the assembled workforce, synergies, and the use of purchased technology to develop future products and technologies. The final allocation of purchase consideration to assets and liabilities remains in process as the Company continues to evaluate certain balances, estimates, and assumptions during the measurement period (up to one year from the acquisition date). Any changes in the fair value of the assets acquired and liabilities assumed during the measurement period may result in adjustments to goodwill. During the nine months ended September 30, 2022, a measurement period adjustment associated with deferred tax assets was recorded, resulting in an increase in other non-current assets of $4.1 million and a corresponding reduction in goodwill.
The total consideration transferred in the acquisition was $258.0 million, consisting of the following (in thousands):
Cash$151,424 
Cash payable126 
Class A common stock of the Company103,977 
RSUs for shares of the Company’s Class A common stock2,457 
Total purchase consideration$257,984 
Included in the purchase consideration are $21.7 million in cash and 85,324 shares of the Company’s Class A common stock that are subject to an indemnity holdback. The cash and shares subject to the indemnity holdback will be released 18 months after the closing date of the transaction.
The results of operations and the fair values of the assets acquired and liabilities assumed have been included in the condensed consolidated financial statements from the date of acquisition. The following table summarizes the preliminary fair values of assets acquired and liabilities assumed as of the date of acquisition (in thousands):
Cash and cash equivalents$10,560 
Restricted cash573 
Accounts and loans receivable, net of allowance4,981 
Prepaid expenses and other current assets4,182 
Lease right-of-use assets1,059 
Property and equipment, net1,248 
Goodwill222,732 
Intangible assets, net28,500 
Other non-current assets3,476 
Total assets277,311 
Accounts payable719 
Accrued expenses and other current liabilities11,325 
Lease liabilities1,059 
Other non-current liabilities6,224 
Total liabilities19,327 
Net assets acquired$257,984 
The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in thousands, except for years data):
Fair ValueUseful Life at Acquisition (in Years)
Developed technology$15,700 
1 - 5
In-process research and development ("IPR&D")2,500 N/A
Customer relationships10,300 2
The intangible assets will be amortized on a straight-line basis over their respective useful lives to technology and development expenses for developed technology and general and administrative expenses for customer relationships. Amortization of the IPR&D will be recognized in technology and development expenses once the research and development is placed into service as internally developed software. Management applied significant judgment in determining the fair value of intangible assets, which involved the use of estimates and assumptions with respect to development costs and profit, costs to recreate customer relationships, market participation profit, and opportunity cost.
Total acquisition costs of $3.0 million were incurred in relation to the acquisition, which were recognized as an expense and included in general and administrative expenses in the condensed consolidated statements of operations.
The impact of this acquisition was not considered significant to the Company’s condensed consolidated financial statements for the current period presented and pro forma financial information has not been provided.
FairXchange, Inc.
On February 1, 2022, the Company completed the acquisition of FairXchange, Inc. (“FairX”) by acquiring all issued and outstanding shares of capital stock, stock options and warrants of FairX. FairX is a derivatives exchange which is registered with the U.S. Commodity Futures Trading Commission as a designated contract market (“DCM”) and the Company believes it has been a key stepping stone on the Company’s path to offer crypto derivatives to retail and institutional customers in the United States.
In accordance with ASC 805, Business Combinations, the acquisition was accounted for as a business combination under the acquisition method. The purchase consideration was allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date with the excess recorded as goodwill, none of which is expected to be deductible for tax purposes. The goodwill balance is primarily attributed to the assembled workforce, market presence, synergies, and the use of purchased technology to develop future products and technologies. The final allocation of purchase consideration to assets and liabilities remains in process as the Company continues to evaluate certain balances, estimates, and assumptions during the measurement period (up to one year from the acquisition date). Any changes in the fair value of the assets acquired and liabilities assumed during the measurement period may result in adjustments to goodwill. During the nine months ended September 30, 2022, a measurement period adjustment associated with deferred tax assets was recorded, resulting in an increase in other non-current assets of $0.3 million and a corresponding reduction in goodwill.
The total consideration transferred in the acquisition was $275.1 million, consisting of the following (in thousands):
Cash$56,726 
Cash payable10,442 
Class A common stock of the Company - issued174,229 
Class A common stock of the Company - to be issued33,693 
Total purchase consideration$275,090 
The aggregate purchase consideration includes 170,397 shares of the Company’s Class A common stock to be issued after the acquisition date. The fair value of these shares on the acquisition date is included in additional paid-in capital. Additionally, included in the purchase consideration are $4.7 million in cash and 83,035 shares of the Company’s Class A common stock that are subject to an indemnity holdback. The cash and shares subject to the indemnity holdback will be released 15 months after the closing date of the transaction.
The results of operations and the fair values of the assets acquired and liabilities assumed have been included in the condensed consolidated financial statements from the date of acquisition. The following table summarizes the preliminary fair values of assets acquired and liabilities assumed as of the date of acquisition (in thousands):
Cash and cash equivalents$10,867 
Accounts and loans receivable, net of allowance411 
Prepaid expenses and other current assets20 
Intangible assets, net41,000 
Goodwill231,685 
Other non-current assets8,295 
Total assets292,278 
Accounts payable472 
Accrued expenses and other current liabilities5,796 
Other non-current liabilities10,920 
Total liabilities17,188 
Net assets acquired$275,090 
The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in thousands, except for years data):
Fair ValueUseful Life at Acquisition (in Years)
DCM License$26,900 Indefinite
Developed technology10,700 5
Trading relationships3,400 3
The developed technology and trading relationships will be amortized on a straight-line basis over their respective useful lives to technology and development expenses for developed technology and general and administrative for trading relationships. The DCM license has an indefinite useful life and will not be amortized. Management applied significant judgment in determining the fair value of intangible assets, which involved the use of estimates and assumptions with respect to forecasted revenues and expenses, development costs and profit, costs to recreate trading relationships, market participation profit, and opportunity cost.
Total acquisition costs of $1.1 million were incurred related to the acquisition, which were recognized as an expense and included in general and administrative expenses in the condensed consolidated statements of operations.
The impact of this acquisition was not considered significant to the Company’s condensed consolidated financial statements for the current period presented and pro forma financial information has not been provided.
2021 Acquisitions
Bison Trails
On February 8, 2021, the Company completed the acquisition of Bison Trails Co. (“Bison Trails”) by acquiring all issued and outstanding common stock and stock options of Bison Trails. Bison Trails is a platform-as-a-service company that provides a suite of easy-to-use blockchain infrastructure products and services on multiple networks to custodians, exchanges and funds.
Prior to the acquisition, the Company held a minority ownership stake in Bison Trails, which was accounted for as a cost method investment. In accordance with ASC 805, Business Combinations, the acquisition was accounted for as a business combination achieved in stages under the acquisition method. Accordingly, the cost method investment was remeasured to fair value as of the acquisition date. The Company considered multiple factors in determining the fair value of the previously held cost method investment, including the price negotiated with the selling shareholders and current trading multiples for comparable companies. Based on this analysis, the Company recognized an $8.8 million gain on remeasurement, which was recorded in other expense, net in the condensed consolidated statement of operations 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, none of which is expected to be deductible for tax purposes. The goodwill balance is primarily attributed to the assembled workforce, market presence, synergies, and the use of purchased technology to develop future products and technologies.
The total consideration transferred in the acquisition was $457.3 million, consisting of the following (in thousands):
Class A common stock of the Company$389,314 
Previously held interest on acquisition date10,863 
Cash28,726 
Replacement of Bison Trails options28,365 
Total purchase consideration$457,268 
Included in the purchase consideration are 496,434 shares of the Company’s Class A common stock that are subject to an indemnity holdback. The shares subject to the indemnity holdback will be released 18 months after the closing date of the transaction.
The results of operations and the fair values of the assets acquired and liabilities assumed have been included in the condensed consolidated financial statements from the date of acquisition. The following table summarizes the estimated fair values of assets acquired and liabilities assumed using a cost-based approach (in thousands):
Cash and cash equivalents$12,201 
Crypto assets held5,177 
Accounts and loans receivable, net of allowance2,323 
Prepaid expenses and other current assets122 
Intangible assets, net39,100 
Goodwill404,167 
Other non-current assets1,221 
Lease right-of-use assets808 
Total assets465,119 
Accounts payable526 
Accrued expenses and other current liabilities1,920 
Lease liabilities808 
Other non-current liabilities4,597 
Total liabilities7,851 
Net assets acquired$457,268 
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)
Developed technology$36,000 3
IPR&D1,200 N/A
User base1,900 3
The intangible assets will be amortized on a straight-line basis over their respective useful lives to technology and development expenses for developed technology and general and administrative expenses for user base. Amortization of the IPR&D will be recognized in technology and development expenses once the research and development is placed into service as internally developed software. Management applied significant judgement in determining the fair value of intangible assets, which involved the use of estimates and assumptions with respect to development costs and profit, costs to recreate customer relationships, market participation profit, and opportunity cost.
Total acquisition costs of $3.7 million were incurred related to the acquisition, which were recognized as an expense and included in general and administrative expenses in the condensed consolidated statements of operations.
The impact of this acquisition was not considered significant to the Company’s condensed consolidated financial statements and pro forma financial information has not been provided.
Other Acquisitions
During the nine months ended September 30, 2021, the Company also completed three other acquisitions that were not material individually, but were material when aggregated. In each of these acquisitions the Company acquired all issued and outstanding common stock and stock options of the acquiree.
The total purchase consideration in each acquisition was allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition dates, with the excess recorded as goodwill. During the nine months ended September 30, 2022, measurement period adjustments associated with deferred tax assets were recorded, resulting in an increase in other non-current assets of $1.9 million and a corresponding reduction in goodwill.
The aggregate total preliminary consideration transferred in these acquisitions was $135.7 million, consisting of the following (in thousands):
Class A common stock of the Company - issued$51,760 
Class A common stock of the Company - to be issued39,940 
Cash27,795 
Cash payable412 
Contingent consideration arrangement15,752 
Aggregate total purchase consideration$135,659 
The aggregate purchase consideration included 160,840 shares of the Company’s Class A common stock which was issued six months after the respective acquisition dates. The fair value of these shares on the respective acquisition dates was included in additional paid-in capital. Additionally, 39,663 shares of the Company’s Class A common stock included in the aggregate purchase consideration that are to be issued, are subject to an indemnity holdback. The shares subject to the indemnity holdback will be released between 15 and 18 months after the closing date of each transaction.
Also included in the aggregate purchase consideration was the original estimated fair value of the contingent consideration arrangement agreed to in one of the acquisitions. The contingent consideration consists of two separate tranches. The first tranche will be settled one year after the closing date of the transaction and may result in delivery of up to 75,534 shares of the Company’s Class A common stock if specified revenue targets are met during the first year after the closing date. The second tranche will be settled two years after the closing date of the transaction and may result in delivery of up to another 75,534 shares of the Company’s Class A common stock, if specified revenue targets are met during the second year after the closing date. For each tranche, the revenue targets are adjusted for changes in the combined Bitcoin and Ethereum market capitalization since the closing date. The total number of the Company’s Class A common stock issued to settle the contingent consideration arrangement will be adjusted downward in proportion to recognized revenues that do not meet the specified revenue targets.
In September 2022, upon resolution of the contingency and determination of the number of shares of the Company’s Class A common stock to be issued under the first tranche of the contingent consideration arrangement, the Company reclassified the value of the first tranche from other non-current liabilities into additional paid-in capital in the condensed consolidated balance sheets. The second tranche of the contingent consideration arrangement is included in other non-current liabilities and is subject to subsequent measurement at fair value with changes in fair value recognized through other expense, net.
The results of operations and the fair values of the assets acquired and liabilities assumed have been included in the condensed consolidated financial statements from the respective dates of acquisition. The following table summarizes the aggregate estimated fair values of assets acquired and liabilities assumed using a cost-based approach (in thousands):
Cash and cash equivalents$4,915 
Accounts and loans receivable, net of allowance57 
Prepaid expenses and other current assets209 
Intangible assets, net46,100 
Goodwill86,041 
Total assets137,322 
Accounts payable65 
Accrued expenses and other current liabilities649 
Other non-current liabilities949 
Total liabilities1,663 
Net assets acquired$135,659 
The excess of aggregate purchase consideration over the fair value of net tangible and identifiable intangible assets acquired was recorded as goodwill of $86.0 million, of which $77.1 million is expected to be deductible for U.S. tax purposes. The goodwill balance is primarily attributed to the assembled workforce, market presence, synergies, and the use of purchased technology to develop future products and technologies.
The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the dates of acquisition (in thousands, except for years data):
Fair ValueUseful Life at Acquisition (in Years)
Developed technology$33,700 2.7
User base1,000 2.5
In process research and development1,600 N/A
Customer relationships9,800 5
The intangible assets will be amortized on a straight-line basis over their respective useful lives to technology and development expenses for developed technology and general and administrative expenses for customer relationships and user base. Amortization of the IPR&D will be recognized in technology and development expenses once the research and development is placed into service as internally developed software. Management applied significant judgement in determining the fair value of intangible assets, which involved the use of estimates and assumptions with respect to development costs and profit, costs to recreate customer relationships, market participation profit, and opportunity cost. These valuations incorporate significant unobservable inputs classified as Level 3.
Total acquisition costs of $3.5 million were incurred related to these other acquisitions, which were recognized as expenses and included in general and administrative expenses in the condensed consolidated statements of operations. The Company also entered into employment agreements with key employees of the acquirees, which included stock-based compensation arrangements. In conjunction with these agreements, the Company recognized $3.2 million of compensation expenses on the acquisition dates included in technology and development expenses. Stock-based compensation arrangements offered to these key employees with vesting conditions will be recognized as compensation expense in future periods. See Note 15. Stock-Based Compensation, for additional details regarding stock-based compensation issued to employees.
The impact of these acquisitions were not considered significant to the Company’s condensed consolidated financial statements and pro forma financial information has not been provided.
v3.22.2.2
REVENUE
 9 Months Ended
Sep. 30, 2022
Revenue from Contract with Customer [Abstract]  
REVENUE REVENUE
Revenue recognition
The Company determines revenue recognition from contracts with customers through the following steps:
•identification of the contract, or contracts, with the customer;
•identification of the performance obligations in the contract;
•determination of the transaction price;
•allocation of the transaction price to the performance obligations in the contract; and
•recognition of the revenue when, or as, the Company satisfies a performance obligation.
Revenue is recognized when control of the promised goods or services is transferred to the customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company primarily generates revenue through transaction fees charged on the platform.
The following table presents revenue of the Company disaggregated by revenue source (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
Net revenue
Transaction revenue
Retail, net$346,091  $1,021,967 $1,928,145  $4,305,088 
Institutional, net19,777 67,689 105,973 255,529 
Total transaction revenue365,868 1,089,656 2,034,118 4,560,617 
Subscription and services revenue
Blockchain rewards62,759 77,039 213,064 120,712 
Custodial fee revenue14,532 31,468 68,404 86,616 
Interest income101,778 8,389 144,746 18,190 
Other subscription and services revenue(1)
31,438 28,184 83,537 78,592 
Total subscription and services revenue210,507 145,080 509,751 304,110 
Total net revenue576,375 1,234,736 2,543,869 4,864,727 
Other revenue
Crypto asset sales revenue8 76,742 625 475,065 
Corporate interest and other income13,956 430 20,606 1,189 
Total other revenue13,964 77,172 21,231 476,254 
Total revenue$590,339 $1,311,908 $2,565,100 $5,340,981 
__________________
(1)During the third quarter of 2022, the Company rebranded the “Earn” campaign to the “Learning Rewards” campaign. $7.4 million and $15.8 million of Learning Rewards revenue is included within other subscription and services revenue for the three and nine months ended September 30, 2022, respectively. $15.2 million and $43.2 million of Learning Rewards revenue has been reclassified from its own line item into other subscription and services revenue for the three and nine months ended September 30, 2021, respectively, to conform to the current period presentation.
Transaction revenue
Retail transaction revenue represents transaction fees earned from customers that are primarily individuals, while institutional transaction revenue represents transaction fees earned from institutional customers, such as hedge funds, family offices, principal trading firms, and financial institutions on the institutional platform. Institutional clients can trade via the Company’s trading platform or utilize Coinbase Prime services depending on their needs. High-frequency trading firms, such as market makers and principal traders, benefit from lower latency by connecting through the trading platform, while corporations and family offices can access an integrated suite of investment services through Coinbase Prime.
The Company’s service is comprised of a single performance obligation to provide a crypto asset matching service when customers buy, sell, or convert crypto assets on the platform. That is, the Company is an agent in transactions between customers and presents revenue for the fees earned on a net basis.
Judgment is required in determining whether the Company is the principal or the agent in transactions between customers. The Company evaluates the presentation of revenue on a gross or net basis based on whether it controls the crypto asset provided before it is transferred to the customer (gross) or whether it acts as an agent by arranging for other customers on the platform to provide the crypto asset to the customer (net). The Company does not control the crypto asset being provided before it is transferred to the buyer, does not have inventory risk related to the crypto asset, and is not responsible for the fulfillment of the crypto asset. The Company also does not set the price for the crypto asset as the price is a market rate established by users of the platform. As a result, the Company acts as an agent in facilitating the ability for a customer to purchase crypto assets from another customer.
The Company considers its performance obligation satisfied, and recognizes revenue, at the point in time the transaction is processed. Contracts with customers are usually open-ended and can be terminated by either party without a termination penalty. Therefore, contracts are defined at the transaction level and do not extend beyond the service already provided.
The Company charges a fee at the transaction level. The transaction price, represented by the trading fee, is calculated based on volume and varies depending on payment type and the value of the transaction. Crypto asset purchase or sale transactions executed by a customer on the Company’s platform is based on tiered pricing that is driven primarily by transaction volume processed for a specific historical period. The Company has concluded that this volume-based pricing approach does not constitute a future material right since the discount is within a range typically offered to a class of customers with similar volume. The transaction fee is collected from the customer at the time the transaction is executed. In certain instances, the transaction fee can be collected in crypto assets, with revenue measured based on the amount of crypto assets received and the fair value of the crypto assets at the time of the transaction.
The transaction price includes estimates for reductions in revenue from transaction fee reversals that may not be recovered from customers. Such reversals occur when the customer disputes a transaction processed on their credit card or their bank account for a variety of reasons and seeks to have the charge reversed after the Company has processed the transaction. These amounts are estimated based upon the most likely amount of consideration to which the Company will be entitled. All estimates are based on historical experience and the Company’s best judgment at the time to the extent it is probable that a significant reversal of revenue recognized will not occur. All estimates of variable consideration are reassessed periodically. The total transaction price is allocated to the single performance obligation. While the Company recognizes transaction fee reversals as a reduction of net revenue, crypto asset losses related to those same transaction reversals are included in transaction expense.
Blockchain rewards
The Company generates revenues in crypto assets through various blockchain protocols. These blockchain protocols, or the participants that form the protocol networks, reward users for performing various activities on the blockchain, such as participating in proof-of-stake networks and other consensus algorithms. The Company considers itself the principal in transactions with the blockchain networks, and therefore presents such blockchain rewards earned on a gross basis. Blockchain rewards are primarily comprised of staking revenue in which the Company participates in networks with proof-of-stake consensus algorithms, through creating or validating blocks on the network using the staking validators that it controls. In exchange for participating in the consensus mechanism of these networks, the Company earns rewards in the form of the native token of the network. Each block creation or validation is a performance obligation. Revenue is recognized at the point when the block creation or validation is complete and the rewards are transferred into a digital wallet that the Company controls. Revenue is measured based on the number of tokens received and the fair value of the token at contract inception. Blockchain services offered as part of Coinbase Cloud’s blockchain infrastructure solutions are included in other subscription and services revenue.
Custodial fee revenue
The Company provides a dedicated secure cold storage solution to customers and earns a fee, which is based on a contractual percentage of the daily value of assets under custody. The fee is collected on a monthly basis. These contracts typically have one performance obligation which is provided and satisfied over the term of the contracts as customers simultaneously receive and consume the benefits of the services. The contract may be terminated by a customer at any time, without incurring a penalty. Customers are billed on the last day of the month during which services were provided, with the amounts being due within thirty days of receipt of the invoice. Accounts receivable from customers for custodial fee revenue, net of allowance, were $9.0 million and $22.4 million as of September 30, 2022 and December 31, 2021, respectively. The allowance recognized against these fees was not material for any of the periods presented.
Interest income and corporate interest and other income
The Company holds customer custodial cash and cash and cash equivalents at certain third-party banks which earn interest. The Company also earns interest income under a revenue sharing arrangement with the issuer of USDC and on loans issued to retail and institutional users. Interest income is calculated using the interest method and is not within the scope of Topic 606 – Revenue from Contracts with Customers. Interest earned on customer custodial cash, revenue sharing, and loans is included in interest income within subscription and services revenue. Interest earned on cash and cash equivalents is included in corporate interest and other income, within other revenue.
Other subscription and services revenue
Other subscription and services revenue primarily includes revenue from Coinbase Cloud, which includes staking application, delegation, and infrastructure services, Coinbase One, Learning Rewards, and other subscription licenses. Generally, revenue from other subscription and services contains one performance obligation, may have variable and non-cash consideration, and is recognized at a point in time or over the period that services are provided.
Other revenue
Other revenue includes the sale of crypto assets and corporate interest and other income. Periodically, as an accommodation to customers, the Company may fulfill customer transactions using the Company’s own crypto assets held for operating purposes. The Company has custody and control of the crypto assets prior to the sale to the customer and records revenue at the point in time when the sale to the customer is processed. Accordingly, the Company records the total value of the sale in other revenue and the cost of the crypto assets in other operating expense, net within the condensed consolidated statements of operations. The cost of crypto assets used in fulfilling customer transactions was $0.2 million and $68.6 million for the three months ended September 30, 2022 and September 30, 2021, respectively, and $0.5 million and $433.8 million for the nine months ended September 30, 2022 and September 30, 2021, respectively.
Related party transactions
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 $1.9 million and $7.7 million for the three months ended September 30, 2022 and September 30, 2021, respectively, and $9.5 million and $21.0 million for the nine months ended September 30, 2022 and September 30, 2021, respectively. As of September 30, 2022 and December 31, 2021, amounts receivable from related party customers were $3.0 million and $4.5 million, respectively. As of September 30, 2022, customer custodial cash liabilities due to related party customers were $34.6 million. As of December 31, 2021, customer custodial cash liabilities due to related party customers were immaterial.
Revenue by geographic location
In the table below are the revenues disaggregated by geography, based on domicile of the customers or booking location, as applicable (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
United States$501,963 $1,003,999 $2,125,010 $4,339,899 
Rest of the world(1)
88,376 307,909 440,090 1,001,082 
     Total revenue$590,339 $1,311,908 $2,565,100 $5,340,981 
__________________
(1)No other individual country accounted for more than 10% of total revenue.
v3.22.2.2
ACCOUNTS AND LOANS RECEIVABLE, NET OF ALLOWANCE
 9 Months Ended
Sep. 30, 2022
Receivables [Abstract]  
ACCOUNTS AND LOANS RECEIVABLE, NET OF ALLOWANCE ACCOUNTS AND LOANS RECEIVABLE, NET OF ALLOWANCE
Accounts and loans receivable, net of allowance consisted of the following (in thousands):
September 30,December 31,
20222021
In-transit customer receivables$42,552 $102,720 
Trade finance receivables7,512 1,865 
Custodial fee revenue receivable11,477 23,727 
Loans receivable(1)
116,601 218,461 
Interest and other receivables(2)
79,164 73,803 
Allowance for doubtful accounts(3)
(16,952)(24,551)
Total accounts and loans receivable, net of allowance$240,354 $396,025 
__________________
(1)The fair value of collateral held as security exceeded the outstanding loans receivable as of September 30, 2022 and December 31, 2021, so no allowance was recorded.
(2)Includes accounts receivables denominated in crypto assets of $11.0 million and $26.4 million as of September 30, 2022 and December 31, 2021, respectively. See Note 12. Derivatives for additional details.
(3)Includes provision for transaction losses of $4.2 million and $16.8 million as of September 30, 2022 and December 31, 2021, respectively.
Loans receivable
The Company issues loans to retail users and institutions. As of September 30, 2022 and December 31, 2021, the Company had issued loans with an outstanding balance of $116.6 million and $218.5 million, respectively. The related interest receivable on the loans as of September 30, 2022 and December 31, 2021, was $0.8 million and $1.3 million, respectively.
The amounts loaned are collateralized with the crypto assets held by the borrower in their crypto asset wallet on the Company’s platform. The Company does not have the right to use such collateral unless the borrower defaults on the loans. The Company’s credit exposure is significantly limited and no allowance was recorded against these loans receivable. Loans receivable are measured at amortized cost. The carrying value of the loans approximates their fair value. As of September 30, 2022 and December 31, 2021, there were no loans receivable past due.
ACCOUNTS AND LOANS RECEIVABLE, NET OF ALLOWANCE ACCOUNTS AND LOANS RECEIVABLE, NET OF ALLOWANCE
Accounts and loans receivable, net of allowance consisted of the following (in thousands):
September 30,December 31,
20222021
In-transit customer receivables$42,552 $102,720 
Trade finance receivables7,512 1,865 
Custodial fee revenue receivable11,477 23,727 
Loans receivable(1)
116,601 218,461 
Interest and other receivables(2)
79,164 73,803 
Allowance for doubtful accounts(3)
(16,952)(24,551)
Total accounts and loans receivable, net of allowance$240,354 $396,025 
__________________
(1)The fair value of collateral held as security exceeded the outstanding loans receivable as of September 30, 2022 and December 31, 2021, so no allowance was recorded.
(2)Includes accounts receivables denominated in crypto assets of $11.0 million and $26.4 million as of September 30, 2022 and December 31, 2021, respectively. See Note 12. Derivatives for additional details.
(3)Includes provision for transaction losses of $4.2 million and $16.8 million as of September 30, 2022 and December 31, 2021, respectively.
Loans receivable
The Company issues loans to retail users and institutions. As of September 30, 2022 and December 31, 2021, the Company had issued loans with an outstanding balance of $116.6 million and $218.5 million, respectively. The related interest receivable on the loans as of September 30, 2022 and December 31, 2021, was $0.8 million and $1.3 million, respectively.
The amounts loaned are collateralized with the crypto assets held by the borrower in their crypto asset wallet on the Company’s platform. The Company does not have the right to use such collateral unless the borrower defaults on the loans. The Company’s credit exposure is significantly limited and no allowance was recorded against these loans receivable. Loans receivable are measured at amortized cost. The carrying value of the loans approximates their fair value. As of September 30, 2022 and December 31, 2021, there were no loans receivable past due.
v3.22.2.2
GOODWILL, INTANGIBLE ASSETS, NET AND CRYPTO ASSETS HELD
 9 Months Ended
Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL, INTANGIBLE ASSETS, NET AND CRYPTO ASSETS HELD GOODWILL, INTANGIBLE ASSETS, NET AND CRYPTO ASSETS HELD
Goodwill
The following table reflects the changes in the carrying amount of goodwill (in thousands):
Nine Months Ended September 30, 2022Year Ended December 31, 2021
Balance, beginning of period$625,758 $77,212 
Additions due to business combinations454,417 548,546 
Measurement period adjustments(1)
(6,269)— 
Balance, end of period$1,073,906 $625,758 
__________________
(1)     The measurement period adjustments consisted of $4.1 million, $0.3 million and $1.9 million related to the Unbound acquisition, FairX acquisition and certain other acquisitions that were material when aggregated, respectively, and which were associated with the changes in deferred tax assets as a result of changes in estimates.

There was no impairment recognized against goodwill at the beginning or end of the periods presented.
Intangible assets, net
Intangible assets, net consisted of the following (in thousands, except years data):

As of September 30, 2022Gross Carrying AmountAccumulated AmortizationIntangible Assets, NetWeighted Average Remaining Useful Life (in Years)
Amortizing intangible assets
Acquired developed technology$128,292 $(71,147)$57,145 2.36
User base2,997 (1,870)1,127 1.00
Customer relationships86,691 (41,170)45,521 2.80
Non-compete agreement2,402 (1,521)881 1.84
Assembled workforce60,800 (35,699)25,101 0.69
Trade Relationships3,400 (756)2,644 2.34
In-process research and development(1)
2,100 — 2,100 N/A
Indefinite-lived intangible assets
Domain name250 — 250 N/A
Licenses26,900 — 26,900 N/A
Total$313,832 $(152,163)$161,669 
__________________
(1)Amortization begins once the technology is placed in service. IPR&D is expected to have a useful life of three years once placed in service.
As of December 31, 2021Gross Carrying AmountAccumulated AmortizationIntangible Assets, NetWeighted Average Remaining Useful Life (in Years)
Amortizing intangible assets
Acquired developed technology$100,908 $(34,865)$66,043 1.97
User base2,997 (1,020)1,977 1.75
Customer relationships79,491 (27,789)51,702 3.68
Non-compete agreement2,402 (1,161)1,241 2.58
Assembled workforce60,800 (8,324)52,476 1.43
In-process research and development(1)
3,000 — 3,000 N/A
Indefinite-lived intangible assets
Domain name250 — 250 N/A
Total$249,848 $(73,159)$176,689 
__________________
(1)Amortization begins once the technology is placed in service. IPR&D is expected to have a useful life of three years once placed in service.
Amortization expense of intangible assets was $27.7 million and $80.0 million for the three and nine months ended September 30, 2022, respectively. Amortization expense of intangible assets was $12.3 million and $27.5 million for the three and nine months ended September 30, 2021, respectively. The Company estimates that there is no significant residual value related to its amortizing intangible assets.
During the three and nine months ended September 30, 2022, the Company recorded impairment charges of $0.1 million and $4.5 million, respectively, related to its intangible assets, excluding crypto assets held. The Company did not have any impairment charges in the three and nine months ended September 30, 2021. Impairment expense is included in other operating expense, net in the condensed consolidated statements of operations.
The expected future amortization expense for intangible assets other than IPR&D as of September 30, 2022 is as follows (in thousands):
2022 (for the remainder of)$25,352 
202367,591 
202421,360 
202513,119 
20264,818 
Thereafter179 
Total expected future amortization expense$132,419 
Crypto assets held
Crypto assets held consisted of the following (in thousands):
September 30,December 31,
20222021
Recorded at impaired cost
Crypto assets held as investments$289,587 $209,415 
Crypto assets held for operating purposes(1)
123,514 357,093 
Total crypto assets held recorded at impaired cost413,101 566,508 
Recorded at fair value(2)
Crypto assets held as investments2,392 — 
Crypto assets borrowed207,580 421,685 
Total crypto assets held recorded at fair value209,972 421,685 
Total crypto assets held$623,073 $988,193 
__________________
(1)Crypto assets held as of September 30, 2022 and December 31, 2021 includes $3.3 million and $38.1 million, respectively, of crypto assets loaned to customers as these did not meet the criteria for derecognition.
(2)Recorded at fair value as these crypto assets are held as the hedged item in qualifying fair value hedges.

The Company recorded gross impairment charges of $25.9 million and $689.1 million during the three and nine months ended September 30, 2022, respectively, and $58.4 million and $234.0 million during the three and nine months ended September 30, 2021, respectively, due to the observed market price of crypto assets decreasing below the carrying value during the respective periods. The Company partially recovered impairments recorded during the respective periods through subsequent crypto asset sales and disposals. Impairment expense is included in other operating expense, net in the condensed consolidated statements of operations.
See Note 12. Derivatives, for additional details regarding crypto assets held designated as hedged items in fair value hedges. See Note 13. Fair Value Measurements, for additional details regarding the carrying value of the Company’s crypto assets held.
v3.22.2.2
CUSTOMER ASSETS AND LIABILITIES
 9 Months Ended
Sep. 30, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
CUSTOMER ASSETS AND LIABILITIES CUSTOMER ASSETS AND LIABILITIES
The Company includes customer custodial funds in the condensed consolidated balance sheets as customer custodial cash and includes customer safeguarding assets in the condensed consolidated balance sheets as customer crypto assets, with a corresponding offset in customer crypto liabilities. Custodial funds due to customers are included in the condensed consolidated balance sheets as customer custodial cash liabilities.
The following table presents customers’ cash and crypto positions (in thousands):
September 30,December 31,
20222021
Customer custodial cash$6,591,105 $10,526,233 
Customer crypto assets95,113,124 — 
Total customer assets$101,704,229 $10,526,233 
Customer custodial cash liabilities$6,357,657 $10,480,612 
Customer crypto liabilities95,113,124 — 
Total customer liabilities$101,470,781 $10,480,612 
The Company safeguards crypto assets for customers in digital wallets and portions of cryptographic keys necessary to access crypto assets on the Company’s platform. The Company safeguards these assets and/or keys and is obligated to safeguard them from loss, theft, or other misuse. The Company records customer crypto assets as well as corresponding customer crypto liabilities, in accordance with recently adopted guidance, SAB 121. The Company maintains a record of all assets in digital wallets held on the Company’s platform as well as the full or a portion of private keys including backup keys, which are maintained on behalf of customers. For crypto assets that are not maintained on the Company’s platform and for which the Company does not maintain a private key or the ability to recover a customer’s private key, these balances are not recorded, as there is no related safeguarding obligation in accordance with SAB 121. The Company records the assets and liabilities, on the initial recognition and at each reporting date, at the fair value of the crypto assets which it safeguards for its customers.

The Company has committed to securely store all crypto assets and cryptographic keys (or portions thereof) it holds on behalf of customers, and the value of these assets have been recorded as customer crypto liabilities and corresponding customer crypto assets. As such, the Company may be liable to its customers for losses arising from theft or loss of private keys. The Company has no reason to believe it will incur any expense associated with such potential liability because (i) it has no known or historical experience of claims to use as a basis of measurement, (ii) it accounts for and continually verifies the amount of crypto assets on its platform, and (iii) it has established security around private key management to minimize the risk of theft or loss. The Company has adopted a number of measures to safeguard crypto assets it secures including, but not limited to, holding customer crypto assets on a 1:1 basis at all times and strategically storing custodied assets offline using Coinbase’s cold storage process. The Company also does not reuse or rehypothecate customer crypto assets nor grant security interests in customer crypto assets, in each case unless required by law or expressly agreed to by the customer. Any loss or theft would impact the measurement of the customer crypto assets. During the nine months ended September 30, 2022, no losses have been incurred in connection with customer crypto assets.
The following table sets forth the fair value of customer crypto assets, as shown in the condensed consolidated balance sheets, as customer crypto assets and customer crypto liabilities, as of September 30, 2022 (in billions):
Fair Value
Percentage of Total(1)
Bitcoin$39.9 42.0 %
Ethereum24.1 25.3 %
Other crypto assets31.1 32.7 %
Total customer crypto assets$95.1 100.0 %
__________________
(1)As of September 30, 2022, no assets other than Bitcoin and Ethereum individually represented more than 5% of total customer crypto assets.

See Note 13. Fair Value Measurements, for additional details regarding the customer crypto assets and customer crypto liabilities.
v3.22.2.2
PREPAID EXPENSES AND OTHER ASSETS
 9 Months Ended
Sep. 30, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
PREPAID EXPENSES AND OTHER ASSETS PREPAID EXPENSES AND OTHER ASSETS
Prepaid expenses and other current assets, and other non-current assets consisted of the following (in thousands):
September 30,December 31,
20222021
Prepaid expenses and other current assets
Prepaid expenses$91,366 $123,246 
Deposits2,524 9,658 
Fair value adjustments related to foreign currency forward contracts(1)
22,935 — 
Cash collateral posted against foreign currency forward contracts(1)
145,000 — 
Other15,219 2,945 
Total prepaid expenses and other current assets$277,044 $135,849 
Other non-current assets
Strategic investments$357,042 $363,950 
Deferred tax assets1,014,736 573,547 
Deposits10,542 13,347 
Other41 1,463 
Total other non-current assets$1,382,361 $952,307 
__________________
(1)See Note 12. Derivatives for additional details.
Strategic investments
The Company makes strategic investments in various companies and technologies through Coinbase Ventures. Strategic investments primarily include equity investments in privately held companies without readily determinable fair values where the Company (1) holds less than 20% ownership in the entity, and (2) does not exercise significant influence, and accordingly, these investments are recorded at cost and adjusted for observable transactions for same or similar investments of the same issuer (referred to as the measurement alternative) and impairment. The changes in the carry value of strategic investments accounted for under the measurement alternative are presented below (in thousands):
Nine Months Ended September 30,
20222021
Carrying amount, beginning of period$352,431 $26,146 
Net additions(1)
57,058 242,196 
Upward adjustments879 3,084 
Previously held interest in Bison Trails (see Note 4)— (2,000)
Impairments and downward adjustments(70,631)(50)
Carrying amount, end of period(2)
$339,737 $269,376 
__________________
(1)Net additions include additions from purchases and reductions due to exits of securities and reclassifications due to changes to capital structure.
(2)Excludes $17.3 million and $10.5 million as of September 30, 2022 and September 30, 2021, respectively, of strategic investments that are not accounted for under the measurement alternative.

Upward adjustments, impairments and downward adjustments from remeasurement of investments are included in other expense, net in the condensed consolidated statements of operations. As of September 30, 2022, cumulative upward adjustments were $4.8 million and cumulative impairments and downward adjustments were $71.5 million. As of December 31, 2021, cumulative upward adjustments and cumulative impairments and downward adjustments were $4.6 million and $0.5 million, respectively.
During the nine months ended September 30, 2022 and September 30, 2021, the Company invested an aggregate of $14.4 million and $150.0 million, respectively, in investees in which certain related parties of the Company held an interest over 10%.
v3.22.2.2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
 9 Months Ended
Sep. 30, 2022
Payables and Accruals [Abstract]  
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
Accrued expenses and other current liabilities consisted of the following (in thousands):
September 30,December 31,
20222021
Accrued expenses$120,769 $195,810 
Accrued payroll and payroll related104,543 146,313 
Income taxes payable8,495 4,553 
Short-term borrowings512 20,060 
Other payables(1)
63,782 72,823 
Total accrued expenses and other current liabilities$298,101 $439,559 
__________________
(1)Includes other payables denominated in crypto assets of $13.1 million as of September 30, 2022 and an immaterial amount as of December 31, 2021. See Note 12. Derivatives for additional details.
Short-term borrowings include borrowings with open terms or amounts payable within the next 12 months or sooner at the option of the Company or the lender. The weighted average interest rate on these borrowings were 4.25% and 5.00% per annum as of September 30, 2022 and December 31, 2021, respectively. During the nine months ended September 30, 2022, the Company repaid an aggregate of $170.0 million of short-term borrowings, including borrowings which were secured by Bitcoin with a value equal to 200% of the outstanding principal.
v3.22.2.2
INDEBTEDNESS
 9 Months Ended
Sep. 30, 2022
Debt Disclosure [Abstract]  
INDEBTEDNESS INDEBTEDNESS
The components of indebtedness were as follows as of September 30, 2022 (in thousands, except percentages):
IndebtednessEffective Interest RatePrincipal AmountUnamortized Debt Discount and Issuance CostsNet Carrying Amount
0.50% 2026 Convertible Notes due on June 1, 2026
0.98 %$1,437,500 $(24,903)$1,412,597 
3.38% 2028 Senior Notes due on October 1, 2028
3.57 %1,000,000 (10,413)989,587 
3.63% 2031 Senior Notes due on October 1, 2031
3.77 %1,000,000 (10,947)989,053 
Total$3,437,500 $(46,263)$3,391,237 
The components of indebtedness were as follows as of December 31, 2021 (in thousands, except percentages):
IndebtednessEffective Interest RatePrincipal AmountUnamortized Debt Discount and Issuance CostsNet Carrying Amount
0.50% 2026 Convertible Notes due on June 1, 2026
0.98 %$1,437,500 $(29,436)$1,408,064 
3.38% 2028 Senior Notes due on October 1, 2028
3.57 %1,000,000 (11,565)988,435 
3.63% 2031 Senior Notes due on October 1, 2031
3.77 %1,000,000 (11,704)988,296 
Total$3,437,500 $(52,705)$3,384,795 
Convertible Senior Notes
In May 2021, the Company issued an aggregate principal amount of $1.44 billion of convertible senior notes due in 2026 (the “2026 Convertible Notes”) pursuant to an indenture, dated May 18, 2021 (the “Convertible Notes Indenture”), between the Company and U.S. Bank National Association, as trustee. The 2026 Convertible Notes were offered and sold in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”).
Senior Notes
In September 2021, the Company completed the issuance of an aggregate principal amount of $1.0 billion of senior notes due on October 1, 2028 (the “2028 Senior Notes”) and an aggregate principal amount of $1.0 billion of senior notes due on October 1, 2031 (the “2031 Senior Notes” and together with the 2028 Senior Notes, the “Senior Notes”). The Senior Notes were issued within the United States only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act, and outside the United States to non-U.S. persons pursuant to Regulation S under the Securities Act.
The indenture governing the Senior Notes contains customary covenants that restrict the ability of the Company and certain of its subsidiaries to incur debt and liens. The Company is not aware of any instances of non-compliance with the covenants as of September 30, 2022.
Interest
The following table summarizes the interest expense for the 2026 Convertible Notes, the 2028 Senior Notes and the 2031 Senior Notes (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
Coupon interest$19,296 $5,300 $57,937 $5,300 
Amortization of debt discount and issuance costs2,204 1,672 6,442 2,420 
Total$21,500 $6,972 $64,379 $7,720 
Debt discounts and debt issuance costs are amortized to interest expense using the effective interest method over the contractual term of the respective note.
v3.22.2.2
DERIVATIVES
 9 Months Ended
Sep. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVES DERIVATIVES
The following outlines the Company’s derivatives and the related hedge accounting designation, as applicable.
Type of DerivativeDescription of DerivativeLocation of Host Contract and Derivative on Balance Sheets
Crypto asset borrowings(1)
The Company borrowed crypto assets that resulted in the obligation to deliver a fixed amount of crypto assets in the future.
Crypto asset borrowings
Accounts receivable denominated in crypto assetsThe Company provided services for which, under the contract, the customer pays in crypto assets. The amount of crypto assets are fixed at the time of invoicing. The right to receive fixed amounts of crypto assets consists of a receivable host contract and an embedded forward contract to purchase crypto assets.
Accounts and loans receivable, net of allowance
Other payables denominated in crypto assetsThe Company entered into arrangements that result in the obligation to deliver a fixed amount of crypto assets in the future.Accrued expenses and other current liabilities
Crypto asset futures(1)
The Company entered into short positions on futures contracts to minimize the exposure on the change in the fair value price of crypto assets held.
Accounts and loans receivable, net of allowance
Foreign currency forward contractsThe Company entered into foreign currency forward contracts, with maturities of 12 months or less, to offset the foreign currency exchange risk of its assets and liabilities denominated in foreign currencies. These contracts are not designated as hedging instruments and reduce, but do not entirely eliminate, the impact of foreign currency exchange rate movements on the Company’s assets and liabilities.Prepaid expenses and other current assets/ Accrued expenses and other current liabilities
__________________
(1)     For risk management purposes, the Company applies hedge accounting using these derivative instruments in qualifying fair value hedges to primarily hedge the fair value exposure of crypto asset prices.
Impact of derivatives on the condensed consolidated balance sheets
The following table summarizes the notional amounts of derivative instruments outstanding, measured in U.S. dollar equivalents (in thousands):
September 30,December 31,
20222021
Designated as hedging instrument
Crypto asset borrowings with embedded derivatives
$210,075 $669,445 
Crypto asset futures(1)
771 — 
Not designated as hedging instrument
Accounts receivable denominated in crypto assets16,748 17,415 
Other payables denominated in crypto assets13,627 — 
Crypto asset futures(1)
994 — 
Foreign currency forward contracts(1)
1,100,000 — 
__________________
(1)    Derivative transactions are measured in terms of the notional amount; however, this amount is not recorded on the condensed consolidated balance sheets and is not, when viewed in isolation, a meaningful measure of the risk profile of the derivative instruments. The notional amount is generally not exchanged, but is used only as the underlying basis on which the value of exchange payments or settlement under these contracts are determined.

The following tables summarize information on derivative assets and liabilities that are reflected in the Company’s condensed consolidated balance sheets, by accounting designation (in thousands):
Gross Derivative AssetsGross Derivative Liabilities
September 30, 2022Not Designated as HedgesDesignated as HedgesTotal Derivative AssetsNot Designated as HedgesDesignated as HedgesTotal Derivative Liabilities
Crypto asset borrowings with embedded derivatives(1)
$— $3,580 $3,580 $— $3,183 $3,183 
Accounts receivable denominated in crypto assets— — — 5,791 — 5,791 
Other payables denominated in crypto assets4,261 — 4,261 3,705 — 3,705 
Foreign currency forward contracts22,935 — 22,935 — — — 
Total fair value of derivative assets and liabilities$27,196 $3,580 $30,776 $9,496 $3,183 $12,679 
__________________
(1)    During the nine months ended September 30, 2022, the fee on these borrowings ranged from 0.0% to 7.5%. During the nine months ended September 30, 2021, the fee on these borrowings ranged from 0.0% to 3.0%. During the three and nine months ended September 30, 2022, the Company incurred $0.9 million and $3.9 million, respectively, of borrowing fees in crypto assets. During the three and nine months ended September 30, 2021, the Company incurred $2.3 million and $9.5 million, respectively, of borrowing fees in crypto assets. Borrowing fees are included in other operating expense, net in the condensed consolidated statements of operations.

Gross Derivative AssetsGross Derivative Liabilities
December 31, 2021Not Designated as HedgesDesignated as HedgesTotal Derivative AssetsNot Designated as HedgesDesignated as HedgesTotal Derivative Liabilities
Crypto asset borrowings with embedded derivatives$— $336,396 $336,396 $— $93,616 $93,616 
Accounts receivable denominated in crypto assets9,033 — 9,033 — — — 
Total fair value of derivative assets and liabilities$9,033 $336,396 $345,429 $— $93,616 $93,616 
Master netting agreement - Right of set-off
Under a master netting agreement to the Company’s foreign currency forward contracts, subject to applicable requirements, the Company is permitted to net settle transactions of the same type with a single net amount payable by one party to the other. However, the Company has elected to present the derivative assets and derivative liabilities on a gross basis on the condensed consolidated balance sheets. As of September 30, 2022, the forward contracts had an aggregate gross asset balance of $22.9 million and no amounts were offset. The Company has entered into a collateral security agreement that provides initial margin to be posted to the counterparty. Interest income earned on the collateral is recorded as corporate interest and other income. The following table provides the collateral posted (in thousands):
September 30,December 31,
20222021
Cash collateral posted(1)
$145,000 $— 
__________________
(1)    Right to reclaim cash collateral related to derivatives recognized in prepaid expenses and other current assets in the condensed consolidated balance sheets.
Impact of derivatives on the condensed consolidated statements of operations
Gains (losses) on derivative instruments recognized in the Company’s condensed consolidated statements of operations were as follows (in thousands):
Three Months Ended September 30, 2022Three Months Ended September 30, 2021
DerivativesHedged ItemsIncome Statement ImpactDerivativesHedged ItemsIncome Statement Impact
Designated as fair value hedging instruments
Crypto asset borrowings with embedded derivatives(1)
$(211,110)$207,112 $(3,998)$(75,999)$75,143 $(856)
Crypto asset futures(1)
225 (77)148 — — — 
Not designated as hedging instruments
Accounts receivable denominated in crypto assets(1)
(4,213)— (4,213)— — — 
Other payables denominated in crypto assets(1)
(2,367)— (2,367)— — — 
Crypto asset futures(1)
(566)— (566)— — — 
Foreign currency forward contracts(2)
22,935 — 22,935 — — — 
Total$(195,096)$207,035 $11,939 $(75,999)$75,143 $(856)
Nine Months Ended September 30, 2022Nine Months Ended September 30, 2021
DerivativesHedged ItemsIncome Statement ImpactDerivativesHedged ItemsIncome Statement Impact
Designated as fair value hedging instruments
Crypto asset borrowings with embedded derivatives(1)
$148,959 $(154,228)$(5,269)$105,558 $(93,973)$11,585 
Crypto asset futures(1)
13,237 (12,339)898 — — — 
Not designated as hedging instruments
Crypto asset borrowings with embedded derivatives(1)
6,626 — 6,626 — — — 
Accounts receivable denominated in crypto assets(1)
(14,476)— (14,476)— — — 
Other payables denominated in crypto assets(1)
143 — 143 — — — 
Crypto asset futures(1)
(1,077)— (1,077)— — — 
Foreign currency forward contracts(2)
22,935 — 22,935 — — — 
Total$176,347 $(166,567)$9,780 $105,558 $(93,973)$11,585 
__________________
(1)Changes in fair value are recognized in other operating expense, net in the condensed consolidated statements of operations.
(2)Changes in fair value are recognized in other expense, net, which partially offset gains and losses due to the remeasurement of certain foreign currency denominated assets and liabilities which are also recognized in other expense, net in the condensed consolidated statements of operations.
The following amounts were recorded in the condensed consolidated balance sheets related to certain cumulative fair value hedge basis adjustments that are expected to reverse through the condensed consolidated statements of operations in future periods as an adjustment to other operating expense, net (in thousands):
Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Items
September 30, 2022Carrying Amount of the Hedged ItemsActive Hedging RelationshipsDiscontinued Hedging RelationshipsTotal
Crypto assets held$209,972 $(1,025)$448 $(577)
Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Items
December 31, 2021Carrying Amount of the Hedged ItemsActive Hedging RelationshipsDiscontinued Hedging RelationshipsTotal
Crypto assets held$421,685 $(240,771)$— $(240,771)
v3.22.2.2
FAIR VALUE MEASUREMENTS
 9 Months Ended
Sep. 30, 2022
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
The following table sets forth by level, within the fair value hierarchy, the Company’s assets and liabilities measured and recorded at fair value on a recurring basis (in thousands):
September 30, 2022
Level 1Level 2Level 3Total
Assets
Cash equivalents(1)
$2,282,077 $— $— $2,282,077 
Customer custodial cash(2)
1,226,646 — — 1,226,646 
Crypto assets held(3)
209,972 — — 209,972 
Derivative assets(4)
— 30,776 — 30,776 
Customer crypto assets— 95,113,124 — 95,113,124 
Total assets$3,718,695 $95,143,900 $— $98,862,595 
Liabilities
Derivative liabilities(4)
$— $12,679 $— $12,679 
Contingent consideration arrangement— — 4,213 4,213 
Customer crypto liabilities— 95,113,124 — 95,113,124 
Total liabilities$— $95,125,803 $4,213 $95,130,016 
December 31, 2021
Level 1Level 2Level 3Total
Assets
Cash equivalents(1)
$4,813,621 $— $— $4,813,621 
Customer custodial cash(2)
3,566,072 — — 3,566,072 
Crypto assets held(3)
— 421,685 — 421,685 
Derivative assets(4)
— 345,429 — 345,429 
Total assets$8,379,693 $767,114 $— $9,146,807 
Liabilities
Derivative liabilities(4)
$— $93,616 $— $93,616 
Contingent consideration arrangement— — 14,828 14,828 
Total liabilities$— $93,616 $14,828 $108,444 
__________________
(1)Represents money market funds. Excludes $2.6 billion of corporate cash held in deposit at banks and $167.8 million held at venues, which were not measured and recorded at fair value as of September 30, 2022. Excludes $2.1 billion of corporate cash held in deposit at banks and $168.9 million held at venues, which were not measured and recorded at fair value as of December 31, 2021.
(2)Represents money market funds. Excludes customer custodial cash of $5.4 billion and $7.0 billion held in deposit at financial institutions and not measured and recorded at fair value as of September 30, 2022 and December 31, 2021, respectively.
(3)Includes crypto assets held that have been designated as hedged items in fair value hedges and excludes crypto assets of $413.1 million and $566.5 million held at cost as of September 30, 2022 and December 31, 2021, respectively.
(4)See Note 12. Derivatives for additional details.

The Company did not make any transfers into or out of Level 3 of the fair value hierarchy during the nine months ended September 30, 2022 and the year ended December 31, 2021.
Customer crypto assets and liabilities represent the Company’s obligation to safeguard customers’ crypto assets. Accordingly, the Company has valued the assets and liabilities using quoted market prices for the underlying crypto assets which is based on Level 2 inputs.
Assets and liabilities measured and recorded at fair value on a non-recurring basis
The Company’s non-financial assets, such as goodwill, intangible assets, property and equipment, and crypto assets held but not designated in hedging relationships are adjusted to fair value when an impairment charge is recognized. The Company’s strategic investments are also measured at fair value on a non-recurring basis. Such fair value measurements are based predominantly on Level 3 inputs. The carrying value of the Company’s strategic investments is adjusted based on an Option-Pricing Model that uses publicly available market data of comparable companies and other unobservable inputs including expected volatility, expected time to liquidity, adjustments for other company-specific developments, and the rights and obligations of the securities the Company holds. Fair value of crypto assets held are predominantly based on Level 1 inputs.
Assets and liabilities not measured and recorded at fair value
The Company’s financial instruments, including certain cash and cash equivalents, restricted cash, certain customer custodial cash, USDC, customer custodial cash liabilities, short-term borrowings and loans receivable are carried at amortized cost, which approximates their fair value. If these financial instruments were recorded at fair value, they would be based on Level 1 inputs, except for short-term borrowings and loans receivable which would be based on Level 2 and Level 3 inputs, respectively.
The Company estimates the fair value of its 2026 Convertible Notes and Senior Notes based on quoted prices in markets that are not active, which is considered a Level 2 valuation input. As of September 30, 2022, the estimated fair value of the 2026 Convertible Notes and Senior Notes were $951.5 million and $1.17 billion, respectively.
v3.22.2.2
COMMON STOCK
 9 Months Ended
Sep. 30, 2022
Equity [Abstract]  
COMMON STOCK COMMON STOCK
Effective April 1, 2021, the Company amended and restated its certificate of incorporation to authorize 10,000,000,000 shares of Class A common stock, 500,000,000 shares of Class B common stock, 500,000,000 shares of undesignated common stock, and 500,000,000 shares of undesignated preferred stock. Shares of Class A common stock and Class B common stock will be treated equally, identically and ratably, on a per share basis, with respect to dividends that may be declared by the Company’s board of directors. Holders of Class A common stock are entitled to one vote per share, and holders of Class B common stock are entitled to 20 votes per share. Holders of Class A common stock and Class B common stock generally vote together as a single class on all matters (including the election of directors) submitted to a vote of the stockholders of the Company. Upon a liquidation, dissolution or winding-up of the Company, the assets legally available for distribution to stockholders would be distributed ratably among the holders of Class A common stock and Class B common stock and any participating preferred stock or new series of common stock outstanding at that time, subject to prior satisfaction of all outstanding debt and liabilities and the preferential rights of and the payment of liquidation preferences, if any, on any outstanding shares of preferred stock or new series of common stock. Shares of Class B common stock are convertible at any time at the option of the holder into shares of Class A common stock on a one-to-one basis. In addition, each share of Class B common stock will automatically convert into a share of Class A common stock upon a sale or transfer (other than with respect to certain estate planning and other transfers). Further, upon certain events specified in the restated certificate of incorporation, all outstanding shares of Class B common stock will convert automatically into shares of Class A common stock.
The Company has reserved shares of Class A common stock and Class B common stock for issuance for the following purposes (in thousands):
September 30,December 31,
20222021
Class A common stock
Options issued and outstanding under the 2013 Amended and Restated Stock Plan (the “2013 Plan”)1,036 1,569 
Options issued and outstanding under the 2019 Equity Incentive Plan (the “2019 Plan”)26,365 29,311 
RSUs issued and outstanding under the 2019 Plan3,004 5,851 
Options issued and outstanding under the 2021 Equity Incentive Plan (the “2021 Plan”) 922 — 
RSUs issued and outstanding under the 2021 Plan3,690 1,402 
Shares available for future issuance under the 2021 Plan43,794 35,856 
Shares available for future issuance under the 2021 ESPP6,941 5,125 
Replacement options issued and outstanding from the Tagomi acquisition1 4 
Replacement options issued and outstanding from the Bison Trails acquisition152 223 
RSUs issued and outstanding from other acquisitions160 229 
Shares available for future issuance of warrants2,296 2,296 
Total Class A common stock shares reserved88,361 81,866 
Class B common stock
Options issued and outstanding under the 2013 Plan4,935 6,101 
Total Class B common stock shares reserved4,935 6,101 
v3.22.2.2
STOCK-BASED COMPENSATION
 9 Months Ended
Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION
Stock options
Activity of options outstanding are as follows (in thousands, except per share and years data):
Options OutstandingWeighted Average Exercise Price per ShareWeighted Average Remaining Contractual Life (Years)Aggregate Intrinsic Value
Balance at January 1, 202237,208 $18.60 7.83$8,698,078 
Issued937 177.79 
Exercised(3,012)13.59 
Forfeited and cancelled(1,722)22.79 
Balance at September 30, 202233,411 23.30 7.191,481,640 
Vested and exercisable at September 30, 202218,506 18.19 6.70882,457 
Vested and expected to vest at September 30, 202227,277 23.26 7.041,229,963 
During the three and nine months ended September 30, 2022, the Company granted stock options for the purchase of 143,751 and 937,247 shares of the Company’s Class A common stock with a weighted-average grant date fair value of $42.69 and $83.25 per share, respectively, to certain employees of the Company. The stock options vest over three years at a rate of 1/12 per quarter.
As of September 30, 2022, there was total unrecognized compensation cost of $159.7 million related to unvested stock options. These costs are expected to be recognized over a weighted-average period of approximately 2.4 years.
The assumptions used under the Black-Scholes-Merton Option-Pricing Model and the weighted average calculated value of the options granted to employees were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
Dividend yield0.0 %N/A0.0 %0.0 %
Expected volatility76.1 %N/A59.3 %44.0 %
Expected term (in years)5.8N/A5.84.8
Risk-free interest rate3.0 %N/A2.1 %0.5 %
As of September 30, 2022, there were 213,757 shares of Class A common stock subject to repurchase related to stock options exercised early and not yet vested, but that are expected to vest. As of September 30, 2022, the Company recorded a liability related to these shares subject to repurchase in the amount of $4.3 million, which is included within accrued expenses and other current liabilities in the accompanying condensed consolidated balance sheets.
Chief Executive Officer performance award
During the three and nine months ended September 30, 2022, stock-based compensation expense of $1.0 million and $2.9 million, respectively, was recognized related to this award. During the three and nine months ended September 30, 2021, stock-based compensation expense of $22.2 million and $28.5 million was recognized related to this award, respectively.
Restricted stock units
The Company’s RSUs 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.
Activity of RSUs outstanding are as follows (in thousands, except per share data):
Number of SharesWeighted-Average Grant Date Fair Value per Share
Balance at January 1, 20227,482 $157.22 
Granted7,860 144.69 
Vested(6,906)153.57 
Forfeited and cancelled(1,582)164.86 
Balance at September 30, 20226,854 144.64 
For RSUs granted during the three months and nine months ended September 30, 2022, the closing price of the Company’s Class A common stock as reported on The Nasdaq Global Select Market on the grant date was used as the fair value.
As of September 30, 2022, there was total unrecognized compensation cost of $841.3 million related to unvested RSUs. These costs are expected to be recognized over a weighted-average period of approximately 1.9 years.
Restricted common stock
As part of the Company’s acquisitions, the Company has issued shares of restricted Class A common stock. Vesting of this restricted Class A common stock is dependent on a service-based vesting condition that is generally satisfied over three years. The Company has the right to repurchase shares at par value for which the vesting condition is not satisfied. Activity of restricted Class A common stock is as follows (in thousands, except per share data):
Number of SharesWeighted-Average Grant Date Fair Value per Share
Balance at January 1, 20222,014 $137.57 
Granted323 137.05 
Vested(925)129.72 
Forfeited and cancelled— — 
Balance at September 30, 20221,412 143.33 
As of September 30, 2022, there was total unrecognized compensation cost of $163.1 million related to unvested restricted Class A common stock. These costs are expected to be recognized over a weighted-average period of approximately 1.6 years.
Employee Stock Purchase Plan
The ESPP allows eligible employees the option to purchase shares of the Company's Class A common stock at a 15% discount, over a series of offering periods through accumulated payroll deductions over the period. The ESPP also includes a look-back provision for the purchase price if the stock price on the purchase date is lower than the stock price on the offering date. The Company recognizes stock-based compensation expenses related to purchase rights issued pursuant to its ESPP on a straight-line basis over the offering period, which is 24 months. The fair value of purchase rights under the ESPP are estimated on the date of grant using the Black-Scholes-Merton Option-Pricing Model.
The grant date of the initial offering period was May 3, 2021, and that offering period will end on April 30, 2023. As of September 30, 2022, the Company recorded a liability of $8.6 million related to the accumulated payroll deductions, which are refundable to employees who withdraw from the ESPP. This amount is included within accrued expenses and other current liabilities in the accompanying condensed consolidated balance sheets.
Stock-based compensation expense
Stock-based compensation is included in the following components of expenses on the accompanying condensed consolidated statements of operations (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
Technology and development$275,817 $176,785 $793,573 $381,030 
Sales and marketing18,461 10,095 52,813 20,299 
General and administrative97,163 77,314 288,692 156,828 
Total$391,441 $264,194 $1,135,078 $558,157 
During the three and nine months ended September 30, 2022, $26.3 million and $97.7 million of stock-based compensation expense was included in capitalized software, respectively. During the three and nine months ended September 30, 2021, $0.7 million and $1.5 million of stock-based compensation expense was included in capitalized software, respectively.
v3.22.2.2
INCOME TAXES
 9 Months Ended
Sep. 30, 2022
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The Company calculates the tax provision for interim periods using an estimated annual effective tax rate applied to year-to-date ordinary income and adjusts for discrete items in the quarter. In each quarter, the estimate of the annual effective tax rate is updated and an adjustment is made in the year-to-date provision. The annual effective tax rate is subject to fluctuation due to factors including changing assumptions on forecasted annual pretax income, certain book and tax differences, valuation allowances against deferred tax assets, or changes in or interpretation of tax laws.
The Company’s effective tax rate (“ETR”) for the three months ended September 30, 2022 and September 30, 2021 was 15.4% and (49.9)%, respectively. The ETR of 15.4% for the three months ended September 30, 2022 was lower than the U.S. statutory rate of 21.0% primarily due to lower deductible stock compensation expense during the quarter.
The Company’s ETR for the nine months ended September 30, 2022 and September 30, 2021 was 17.1% and (30.3)%, respectively. The ETR of 17.1% for the nine months ended September 30, 2022 was lower than the U.S. statutory rate of 21.0% primarily due to a valuation allowance on deferred tax assets associated with impairment charges and non-deductible compensation, offset by a tax benefit for U.S. state taxes and U.S. federal research and development credits.
v3.22.2.2
NET (LOSS) INCOME PER SHARE
 9 Months Ended
Sep. 30, 2022
Earnings Per Share [Abstract]  
NET (LOSS) INCOME PER SHARE NET (LOSS) INCOME PER SHARE
The computation of net (loss) income per share is as follows (in thousands, except per share amounts):
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
Basic net (loss) income per share:
Numerator
Net (loss) income$(544,635)$406,100 $(2,067,948)$2,783,912 
Less: Income allocated to participating securities— (3,757)— (542,122)
Net (loss) income attributable to common stockholders, basic$(544,635)$402,343 $(2,067,948)$2,241,790 
Denominator
Weighted-average shares of common stock used to compute net (loss) income per share attributable to common stockholders, basic223,916 209,604 220,816 165,045 
Net (loss) income per share attributable to common stockholders, basic$(2.43)$1.92 $(9.37)$13.58 
Diluted net (loss) income per share:
Numerator
Net (loss) income$(544,635)$406,100 $(2,067,948)$2,783,912 
Less: Income allocated to participating securities— (3,167)— (448,463)
Add: Interest on convertible notes, net of tax— 3,087 — 3,638 
Less: Fair value gain on contingent consideration arrangement, net of tax — (680)(5,395)(680)
Net (loss) income attributable to common stockholders, diluted$(544,635)$405,340 $(2,073,343)$2,338,407 
Denominator
Weighted-average shares of common stock used to compute net (loss) income per share attributable to common stockholders, basic223,916 209,604 220,816 165,045 
Weighted-average effect of potentially dilutive securities:
Stock options— 33,122 — 38,419 
RSUs— 3,924 — 3,604 
Restricted common stock— 5 — 3 
Warrants— — — 97 
Convertible notes— 3,880 — 1,883 
Contingent consideration— 1 40 1 
Weighted-average shares of common stock used to compute net (loss) income per share attributable to common stockholders, diluted223,916 250,536 220,856 209,052 
Net (loss) income per share attributable to common stockholders, diluted$(2.43)$1.62 $(9.39)$11.19 
Certain shares of restricted Class A common stock granted as consideration in acquisitions and the Company’s convertible preferred stock outstanding during 2021 are participating securities. These participating securities do not contractually require the holders of such shares to participate in the Company’s losses.
The rights, including the liquidation and dividend rights, of the holders of Class A common stock and Class B common stock are identical, except with respect to voting. As a result, the undistributed earnings are allocated on a proportionate basis and the resulting income (loss) per share will, therefore, be the same for both Class A common stock and Class B common stock on an individual or combined basis.
The following potentially dilutive shares were not included in the calculation of diluted shares outstanding as the effect would have been anti-dilutive (in thousands):
Three Months Ended September 30Nine Months Ended September 30
2022 202120222021
Stock options33,411 6,134 33,411 6,134 
RSUs6,854 107 6,854 107 
Convertible notes3,880 — 3,880 — 
Restricted common stock1,740 65 1,740 65 
ESPP1,030 284 1,030 284 
Contingent consideration76 — — — 
Total46,991 6,590 46,915 6,590 
v3.22.2.2
COMMITMENTS AND CONTINGENCIES
 9 Months Ended
Sep. 30, 2022
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 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. Among other relief requested, the plaintiffs seek injunctive relief, unspecified damages, attorneys’ fees and costs. The Company and other defendants dispute the claims in this case and intend to vigorously defend against them. 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.
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.
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, is currently 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. The Company is cooperating fully and has undertaken initial remedial measures. Resolution of this matter, including as a result of any mutually agreed upon settlement, may result in fines and additional remedial measures. At this time, the outcome of this matter remains uncertain and the Company cannot estimate the reasonably possible range of outcomes on its business or financial statements.
The Company has received investigative subpoenas and requests from the SEC 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. Based on the ongoing nature of these matters, the outcomes remain uncertain and the Company cannot estimate the potential impact, if any, on its business or financial statements at this time.
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.
v3.22.2.2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
 9 Months Ended
Sep. 30, 2022
Accounting Policies [Abstract]  
Basis of presentation and principles of consolidation
Basis of presentation and principles of consolidation
The accompanying condensed consolidated financial statements of the Company are unaudited. These unaudited condensed consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”) on the same basis as the audited consolidated financial statements, and in management’s opinion, reflect all adjustments, consisting only of normal, recurring adjustments, that are necessary for the fair statement of the Company’s condensed consolidated financial statements for the periods presented. The unaudited condensed consolidated results of operations for the three and nine months ended September 30, 2022 are not necessarily indicative of the results to be expected for the full year or any other period.
These condensed consolidated financial statements and accompanying notes should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s annual report on Form 10-K for the year ended December 31, 2021 filed with the Securities and Exchange Commission (the “SEC”) on February 25, 2022 (the “Annual Report”).
These condensed consolidated financial statements include the accounts of the Company and its subsidiaries. The Company’s subsidiaries are entities in which the Company holds, directly or indirectly, more than 50% of the voting rights, or where it exercises control. Certain subsidiaries of the Company have a basis of presentation different from GAAP. For the purposes of these unaudited condensed consolidated financial statements, the basis of presentation of such subsidiaries is converted to GAAP. All intercompany accounts and transactions have been eliminated in consolidation.
There were no changes to the significant accounting policies or recent accounting pronouncements that were disclosed in Note 2. Summary of Significant Accounting Policies to the audited consolidated financial statements included in the Annual Report, other than as discussed below.
Reclassifications
Reclassifications
Certain prior period amounts have been reclassified in order to conform with the current period presentation. These reclassifications have no impact on the Company’s previously reported consolidated net income.
Use of estimates
Use of estimates
The preparation of the condensed consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions in the Company’s condensed consolidated financial statements and notes thereto.
Significant estimates and assumptions include the determination of the recognition, measurement, and valuation of current and deferred income taxes; the fair value of stock-based awards issued; the useful lives of long-lived assets; the impairment of long-lived assets; the valuation of privately-held strategic investments, including impairments; the Company’s incremental borrowing rate; the fair value of customer crypto assets and liabilities; the fair value of assets acquired and liabilities assumed in business combinations, including contingent consideration arrangements; the fair value of derivatives and related hedges; the fair value of long-term debt; assessing the likelihood of adverse outcomes from claims and disputes; and loss provisions.
Actual results and outcomes may differ from management’s estimates and assumptions due to risks and uncertainties. To the extent that there are material differences between these estimates and actual results, the Company’s condensed consolidated financial statements will be affected. The Company bases its estimates on historical experience and on various other assumptions that are believed to be reasonable, the result of which forms the basis for making judgments about the carrying values of assets and liabilities.
Customer custodial cash and customer cash liabilities
Customer custodial cash and customer custodial cash liabilities
Customer custodial cash represents restricted cash and cash equivalents maintained in segregated Company bank accounts that are held for the exclusive benefit of customers. Customer custodial cash liabilities represent cash deposits held by customers in their fiat wallets and unsettled deposits and withdrawals. The Company restricts the use of the assets underlying the customer custodial cash to meet regulatory requirements and classifies the assets as current based on their purpose and availability to fulfill the Company’s direct obligation under customer custodial cash liabilities.
Certain jurisdictions where the Company operates require the Company to hold eligible liquid assets, as defined by applicable regulatory requirements and commercial law in these jurisdictions, equal to at least 100% of the aggregate amount of all customer custodial cash liabilities. Depending on the jurisdiction, eligible liquid assets can include cash and cash equivalents, customer custodial cash, and in-transit customer receivables. As of September 30, 2022 and December 31, 2021, the Company’s eligible liquid assets were greater than the aggregate amount of customer custodial cash liabilities.
Concentration of credit risk
Concentration of credit risk
The Company’s cash and cash equivalents, restricted cash, customer custodial cash, and accounts and loans receivable are potentially subject to concentration of credit risk. Cash and cash equivalents, restricted cash, and customer custodial cash are placed with financial institutions which are of high credit quality. The Company invests cash and cash equivalents, and customer custodial accounts primarily in highly liquid, highly rated instruments which are uninsured. The Company may also have deposit balances with financial institutions which exceed the Federal Deposit Insurance Corporation insurance limit of $250,000. The Company also holds cash at crypto trading venues and performs a regular assessment of these crypto trading venues as part of its risk management process.
The Company held $368.1 million and $100.1 million of USD Coin (“USDC”) as of September 30, 2022 and December 31, 2021, respectively. The issuer of USDC reported that, as of September 30, 2022, underlying reserves were held in cash and short-duration U.S. Treasuries within segregated accounts for the benefit of USDC holders.
As of September 30, 2022 and December 31, 2021, the Company had one customer and no customers, respectively, who accounted for more than 10% of the Company’s accounts and loans receivable, net. As of September 30, 2022 and December 31, 2021, the Company had no payment processors or bank partners representing more than 10% of accounts and loans receivable, net.During the three and nine months ended September 30, 2022 and September 30, 2021, no customer accounted for more than 10% of total revenue.
Derivatives contracts
Derivative contracts
Derivative contracts derive their value from underlying asset prices, other inputs or a combination of these factors. Derivative contracts are recognized as either assets or liabilities in the condensed consolidated balance sheets at fair value, with changes in fair value recognized in other operating expense, net.
The Company enters into arrangements that result in obtaining the right to receive or obligation to deliver a fixed amount of crypto assets in the future. These are hybrid instruments, consisting of a debt host contract that is initially measured at the fair value of the underlying crypto assets and is subsequently carried at amortized cost, and an embedded forward feature based on the changes in the fair value of the underlying crypto asset. The embedded forward is bifurcated from the host contract, and is subsequently measured at fair value.
The Company also enters into foreign exchange forward contracts that act as economic hedges against the impact of changes in Euro on the Company’s intercompany transactions. The Company records changes in fair value of the forward contracts as part of other expense, net in the consolidated statements of operations.
Derivatives designated as hedges
The Company applies hedge accounting to certain derivatives executed for risk management purposes. To qualify for hedge accounting, a derivative must be highly effective at reducing the risk associated with the exposure being hedged. The Company uses fair value hedges primarily to hedge the fair value exposure of crypto asset prices. For qualifying fair value hedges, the changes in the fair value of the derivative and the fair value of the hedged item are recognized in current-period earnings in other operating expense, net in the condensed consolidated statements of operations. Derivative amounts affecting earnings are recognized in the same line item as the earnings effect of the hedged item.
Customer crypto assets and liabilities
Customer crypto assets and liabilities
Customer crypto assets and liabilities represent the Company’s obligation to safeguard customers’ crypto assets in digital wallets on the Company’s platform. The Company safeguards these assets for customers and is obligated to safeguard them from loss, theft, or other misuse. The Company recognizes customer crypto liabilities and corresponding customer crypto assets, on initial recognition and at each reporting date, at fair value of the crypto assets. Any loss, theft, or other misuse would impact the measurement of customer crypto assets.
Recent accounting pronouncements
Recent accounting pronouncements
Recently adopted accounting pronouncements
On October 28, 2021, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2021-08, Accounting for Contract Assets and Contract Liabilities from Contracts with Customers (“ASU 2021-08”). ASU 2021-08 amends Accounting Standards Codification 805 (“ASC 805”) to require acquiring entities to apply Topic 606 - Revenue from Contracts with Customers to recognize and measure contract assets and contract liabilities in a business combination. The Company early adopted the standard on January 1, 2022. The adoption of the standard did not have a material impact on the Company’s condensed consolidated financial statements.
On March 31, 2022, the SEC issued Staff Accounting Bulletin No. 121 (“SAB 121”). SAB 121 sets out interpretive guidance from the staff of the SEC regarding the accounting for obligations to safeguard crypto assets that an entity holds for its customers. Safeguarding is defined as taking actions to secure customer crypto assets and the associated cryptographic key information and protecting them from loss, theft, or other misuse. The guidance requires an entity to recognize a liability for the obligation to safeguard the users’ assets, and recognize an associated asset for the crypto assets safeguarded. Both the liability and asset should be measured initially and subsequently at the fair value of the crypto assets being safeguarded. The guidance also requires additional disclosures related to the nature and amount of crypto assets that the entity is responsible for holding for its customers, with separate disclosure for each significant crypto asset, and the vulnerabilities the entity has due to any concentration in such activities. The Company has adopted this guidance as of June 30, 2022 with retrospective application as of January 1, 2022. The balances as of January 1, 2022 for the customer crypto assets and customer crypto liabilities were both $267.6 billion.
Accounting pronouncements pending adoption
On June 30, 2022, FASB issued Accounting Standards Update No. 2022-03, Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions (“ASU 2022-03”). ASU 2022-03 clarifies that a contractual sale restriction prohibiting the sale of an equity security is a characteristic of the reporting entity holding the equity security and is not included in the equity security's unit of account. The standard requires specific disclosures related to equity securities that are subject to contractual sale restrictions, including (1) the fair value of such equity securities reflected in the balance sheet, (2) the nature and remaining duration of the corresponding restrictions, and (3) any circumstances that could cause a lapse in the restrictions. The new standard is effective for the Company for its fiscal year beginning January 1, 2024, with early adoption permitted. The Company is currently evaluating the impact of adopting the standard on the Company’s consolidated financial statements.
Revenue recognition
Revenue recognition
The Company determines revenue recognition from contracts with customers through the following steps:
•identification of the contract, or contracts, with the customer;
•identification of the performance obligations in the contract;
•determination of the transaction price;
•allocation of the transaction price to the performance obligations in the contract; and
•recognition of the revenue when, or as, the Company satisfies a performance obligation.
Revenue is recognized when control of the promised goods or services is transferred to the customers, in an amount that reflects the consideration the Company expects to be entitled to in exchange for those goods or services. The Company primarily generates revenue through transaction fees charged on the platform.
Transaction revenue
Retail transaction revenue represents transaction fees earned from customers that are primarily individuals, while institutional transaction revenue represents transaction fees earned from institutional customers, such as hedge funds, family offices, principal trading firms, and financial institutions on the institutional platform. Institutional clients can trade via the Company’s trading platform or utilize Coinbase Prime services depending on their needs. High-frequency trading firms, such as market makers and principal traders, benefit from lower latency by connecting through the trading platform, while corporations and family offices can access an integrated suite of investment services through Coinbase Prime.
The Company’s service is comprised of a single performance obligation to provide a crypto asset matching service when customers buy, sell, or convert crypto assets on the platform. That is, the Company is an agent in transactions between customers and presents revenue for the fees earned on a net basis.
Judgment is required in determining whether the Company is the principal or the agent in transactions between customers. The Company evaluates the presentation of revenue on a gross or net basis based on whether it controls the crypto asset provided before it is transferred to the customer (gross) or whether it acts as an agent by arranging for other customers on the platform to provide the crypto asset to the customer (net). The Company does not control the crypto asset being provided before it is transferred to the buyer, does not have inventory risk related to the crypto asset, and is not responsible for the fulfillment of the crypto asset. The Company also does not set the price for the crypto asset as the price is a market rate established by users of the platform. As a result, the Company acts as an agent in facilitating the ability for a customer to purchase crypto assets from another customer.
The Company considers its performance obligation satisfied, and recognizes revenue, at the point in time the transaction is processed. Contracts with customers are usually open-ended and can be terminated by either party without a termination penalty. Therefore, contracts are defined at the transaction level and do not extend beyond the service already provided.
The Company charges a fee at the transaction level. The transaction price, represented by the trading fee, is calculated based on volume and varies depending on payment type and the value of the transaction. Crypto asset purchase or sale transactions executed by a customer on the Company’s platform is based on tiered pricing that is driven primarily by transaction volume processed for a specific historical period. The Company has concluded that this volume-based pricing approach does not constitute a future material right since the discount is within a range typically offered to a class of customers with similar volume. The transaction fee is collected from the customer at the time the transaction is executed. In certain instances, the transaction fee can be collected in crypto assets, with revenue measured based on the amount of crypto assets received and the fair value of the crypto assets at the time of the transaction.
The transaction price includes estimates for reductions in revenue from transaction fee reversals that may not be recovered from customers. Such reversals occur when the customer disputes a transaction processed on their credit card or their bank account for a variety of reasons and seeks to have the charge reversed after the Company has processed the transaction. These amounts are estimated based upon the most likely amount of consideration to which the Company will be entitled. All estimates are based on historical experience and the Company’s best judgment at the time to the extent it is probable that a significant reversal of revenue recognized will not occur. All estimates of variable consideration are reassessed periodically. The total transaction price is allocated to the single performance obligation. While the Company recognizes transaction fee reversals as a reduction of net revenue, crypto asset losses related to those same transaction reversals are included in transaction expense.
Blockchain rewards
The Company generates revenues in crypto assets through various blockchain protocols. These blockchain protocols, or the participants that form the protocol networks, reward users for performing various activities on the blockchain, such as participating in proof-of-stake networks and other consensus algorithms. The Company considers itself the principal in transactions with the blockchain networks, and therefore presents such blockchain rewards earned on a gross basis. Blockchain rewards are primarily comprised of staking revenue in which the Company participates in networks with proof-of-stake consensus algorithms, through creating or validating blocks on the network using the staking validators that it controls. In exchange for participating in the consensus mechanism of these networks, the Company earns rewards in the form of the native token of the network. Each block creation or validation is a performance obligation. Revenue is recognized at the point when the block creation or validation is complete and the rewards are transferred into a digital wallet that the Company controls. Revenue is measured based on the number of tokens received and the fair value of the token at contract inception. Blockchain services offered as part of Coinbase Cloud’s blockchain infrastructure solutions are included in other subscription and services revenue.
Custodial fee revenue
The Company provides a dedicated secure cold storage solution to customers and earns a fee, which is based on a contractual percentage of the daily value of assets under custody. The fee is collected on a monthly basis. These contracts typically have one performance obligation which is provided and satisfied over the term of the contracts as customers simultaneously receive and consume the benefits of the services. The contract may be terminated by a customer at any time, without incurring a penalty. Customers are billed on the last day of the month during which services were provided, with the amounts being due within thirty days of receipt of the invoice.
Interest income and corporate interest and other income
The Company holds customer custodial cash and cash and cash equivalents at certain third-party banks which earn interest. The Company also earns interest income under a revenue sharing arrangement with the issuer of USDC and on loans issued to retail and institutional users. Interest income is calculated using the interest method and is not within the scope of Topic 606 – Revenue from Contracts with Customers. Interest earned on customer custodial cash, revenue sharing, and loans is included in interest income within subscription and services revenue. Interest earned on cash and cash equivalents is included in corporate interest and other income, within other revenue.
Other subscription and services revenue
Other subscription and services revenue primarily includes revenue from Coinbase Cloud, which includes staking application, delegation, and infrastructure services, Coinbase One, Learning Rewards, and other subscription licenses. Generally, revenue from other subscription and services contains one performance obligation, may have variable and non-cash consideration, and is recognized at a point in time or over the period that services are provided.
Other revenueOther revenue includes the sale of crypto assets and corporate interest and other income. Periodically, as an accommodation to customers, the Company may fulfill customer transactions using the Company’s own crypto assets held for operating purposes. The Company has custody and control of the crypto assets prior to the sale to the customer and records revenue at the point in time when the sale to the customer is processed. Accordingly, the Company records the total value of the sale in other revenue and the cost of the crypto assets in other operating expense, net within the condensed consolidated statements of operations.Related party transactionsCertain of the Company’s directors, executive officers, and principal owners, including immediate family members, are users of the Company’s platform.
Loans receivable The Company’s credit exposure is significantly limited and no allowance was recorded against these loans receivable. Loans receivable are measured at amortized cost.
v3.22.2.2
RESTRUCTURING (Tables)
 9 Months Ended
Sep. 30, 2022
Restructuring and Related Activities [Abstract]  
Restructuring and Related Costs
The following expenses were recognized within restructuring expenses in the condensed consolidated statements of operations during the three and nine months ended September 30, 2022 (in thousands). The Company does not expect to incur any additional charges in connection with this restructuring.
Three Months Ended September 30, 2022Nine Months Ended September 30, 2022Cumulative Costs Incurred to Date
Separation pay$— $39,259 $39,259 
Other personnel costs(1)
(1,232)1,962 1,962 
Total$(1,232)$41,221 $41,221 
__________________
(1)The negative adjustment of $1.2 million during the three months ended September 30, 2022 is due to the release of accruals for certain other personnel costs recorded as of June 30, 2022 which were not utilized.
Schedule of Restructuring Reserve by Type of Cost
The following table summarizes the balance of the restructuring reserve and the changes in the reserve as of and for the nine months ended September 30, 2022 (in thousands):
Expenses IncurredPaymentsAdjustment to Other Personnel CostsAccrued Balance as of September 30, 2022
Separation pay$39,259 $(37,940)$— $1,319 
Other personnel costs3,194 (1,480)(1,232)482 
Total$42,453 $(39,420)$(1,232)$1,801 
v3.22.2.2
ACQUISITIONS (Tables)
 9 Months Ended
Sep. 30, 2022
Business Combination and Asset Acquisition [Abstract]  
Schedule of business acquisitions by acquisition
The total consideration transferred in the acquisition was $258.0 million, consisting of the following (in thousands):
Cash$151,424 
Cash payable126 
Class A common stock of the Company103,977 
RSUs for shares of the Company’s Class A common stock2,457 
Total purchase consideration$257,984 
The total consideration transferred in the acquisition was $275.1 million, consisting of the following (in thousands):
Cash$56,726 
Cash payable10,442 
Class A common stock of the Company - issued174,229 
Class A common stock of the Company - to be issued33,693 
Total purchase consideration$275,090 
The total consideration transferred in the acquisition was $457.3 million, consisting of the following (in thousands):
Class A common stock of the Company$389,314 
Previously held interest on acquisition date10,863 
Cash28,726 
Replacement of Bison Trails options28,365 
Total purchase consideration$457,268 
The aggregate total preliminary consideration transferred in these acquisitions was $135.7 million, consisting of the following (in thousands):
Class A common stock of the Company - issued$51,760 
Class A common stock of the Company - to be issued39,940 
Cash27,795 
Cash payable412 
Contingent consideration arrangement15,752 
Aggregate total purchase consideration$135,659 
Schedule of recognized identified assets acquired and liabilities assumed The following table summarizes the preliminary fair values of assets acquired and liabilities assumed as of the date of acquisition (in thousands):
Cash and cash equivalents$10,560 
Restricted cash573 
Accounts and loans receivable, net of allowance4,981 
Prepaid expenses and other current assets4,182 
Lease right-of-use assets1,059 
Property and equipment, net1,248 
Goodwill222,732 
Intangible assets, net28,500 
Other non-current assets3,476 
Total assets277,311 
Accounts payable719 
Accrued expenses and other current liabilities11,325 
Lease liabilities1,059 
Other non-current liabilities6,224 
Total liabilities19,327 
Net assets acquired$257,984 
The following table summarizes the preliminary fair values of assets acquired and liabilities assumed as of the date of acquisition (in thousands):
Cash and cash equivalents$10,867 
Accounts and loans receivable, net of allowance411 
Prepaid expenses and other current assets20 
Intangible assets, net41,000 
Goodwill231,685 
Other non-current assets8,295 
Total assets292,278 
Accounts payable472 
Accrued expenses and other current liabilities5,796 
Other non-current liabilities10,920 
Total liabilities17,188 
Net assets acquired$275,090 
The following table summarizes the estimated fair values of assets acquired and liabilities assumed using a cost-based approach (in thousands):
Cash and cash equivalents$12,201 
Crypto assets held5,177 
Accounts and loans receivable, net of allowance2,323 
Prepaid expenses and other current assets122 
Intangible assets, net39,100 
Goodwill404,167 
Other non-current assets1,221 
Lease right-of-use assets808 
Total assets465,119 
Accounts payable526 
Accrued expenses and other current liabilities1,920 
Lease liabilities808 
Other non-current liabilities4,597 
Total liabilities7,851 
Net assets acquired$457,268 
The following table summarizes the aggregate estimated fair values of assets acquired and liabilities assumed using a cost-based approach (in thousands):
Cash and cash equivalents$4,915 
Accounts and loans receivable, net of allowance57 
Prepaid expenses and other current assets209 
Intangible assets, net46,100 
Goodwill86,041 
Total assets137,322 
Accounts payable65 
Accrued expenses and other current liabilities649 
Other non-current liabilities949 
Total liabilities1,663 
Net assets acquired$135,659 
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)
Developed technology$15,700 
1 - 5
In-process research and development ("IPR&D")2,500 N/A
Customer relationships10,300 2
The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in thousands, except for years data):
Fair ValueUseful Life at Acquisition (in Years)
DCM License$26,900 Indefinite
Developed technology10,700 5
Trading relationships3,400 3
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)
Developed technology$36,000 3
IPR&D1,200 N/A
User base1,900 3
The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the dates of acquisition (in thousands, except for years data):
Fair ValueUseful Life at Acquisition (in Years)
Developed technology$33,700 2.7
User base1,000 2.5
In process research and development1,600 N/A
Customer relationships9,800 5
v3.22.2.2
REVENUE (Tables)
 9 Months Ended
Sep. 30, 2022
Revenue from Contract with Customer [Abstract]  
Schedule of disaggregated revenue by source
The following table presents revenue of the Company disaggregated by revenue source (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
Net revenue
Transaction revenue
Retail, net$346,091  $1,021,967 $1,928,145  $4,305,088 
Institutional, net19,777 67,689 105,973 255,529 
Total transaction revenue365,868 1,089,656 2,034,118 4,560,617 
Subscription and services revenue
Blockchain rewards62,759 77,039 213,064 120,712 
Custodial fee revenue14,532 31,468 68,404 86,616 
Interest income101,778 8,389 144,746 18,190 
Other subscription and services revenue(1)
31,438 28,184 83,537 78,592 
Total subscription and services revenue210,507 145,080 509,751 304,110 
Total net revenue576,375 1,234,736 2,543,869 4,864,727 
Other revenue
Crypto asset sales revenue8 76,742 625 475,065 
Corporate interest and other income13,956 430 20,606 1,189 
Total other revenue13,964 77,172 21,231 476,254 
Total revenue$590,339 $1,311,908 $2,565,100 $5,340,981 
__________________
(1)During the third quarter of 2022, the Company rebranded the “Earn” campaign to the “Learning Rewards” campaign. $7.4 million and $15.8 million of Learning Rewards revenue is included within other subscription and services revenue for the three and nine months ended September 30, 2022, respectively. $15.2 million and $43.2 million of Learning Rewards revenue has been reclassified from its own line item into other subscription and services revenue for the three and nine months ended September 30, 2021, respectively, to conform to the 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 or booking location, as applicable (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
United States$501,963 $1,003,999 $2,125,010 $4,339,899 
Rest of the world(1)
88,376 307,909 440,090 1,001,082 
     Total revenue$590,339 $1,311,908 $2,565,100 $5,340,981 
__________________
(1)No other individual country accounted for more than 10% of total revenue.
v3.22.2.2
ACCOUNTS AND LOANS RECEIVABLE, NET OF ALLOWANCE (Tables)
 9 Months Ended
Sep. 30, 2022
Receivables [Abstract]  
Schedule of accounts receivable, net of allowance
Accounts and loans receivable, net of allowance consisted of the following (in thousands):
September 30,December 31,
20222021
In-transit customer receivables$42,552 $102,720 
Trade finance receivables7,512 1,865 
Custodial fee revenue receivable11,477 23,727 
Loans receivable(1)
116,601 218,461 
Interest and other receivables(2)
79,164 73,803 
Allowance for doubtful accounts(3)
(16,952)(24,551)
Total accounts and loans receivable, net of allowance$240,354 $396,025 
__________________
(1)The fair value of collateral held as security exceeded the outstanding loans receivable as of September 30, 2022 and December 31, 2021, so no allowance was recorded.
(2)Includes accounts receivables denominated in crypto assets of $11.0 million and $26.4 million as of September 30, 2022 and December 31, 2021, respectively. See Note 12. Derivatives for additional details.
(3)Includes provision for transaction losses of $4.2 million and $16.8 million as of September 30, 2022 and December 31, 2021, respectively.
v3.22.2.2
GOODWILL, INTANGIBLE ASSETS, NET AND CRYPTO ASSETS HELD (Tables)
 9 Months Ended
Sep. 30, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of goodwill
The following table reflects the changes in the carrying amount of goodwill (in thousands):
Nine Months Ended September 30, 2022Year Ended December 31, 2021
Balance, beginning of period$625,758 $77,212 
Additions due to business combinations454,417 548,546 
Measurement period adjustments(1)
(6,269)— 
Balance, end of period$1,073,906 $625,758 
__________________
(1)     The measurement period adjustments consisted of $4.1 million, $0.3 million and $1.9 million related to the Unbound acquisition, FairX acquisition and certain other acquisitions that were material when aggregated, respectively, and which were associated with the changes in deferred tax assets as a result of changes in estimates.
Schedule of finite-lived intangible assets
Intangible assets, net consisted of the following (in thousands, except years data):

As of September 30, 2022Gross Carrying AmountAccumulated AmortizationIntangible Assets, NetWeighted Average Remaining Useful Life (in Years)
Amortizing intangible assets
Acquired developed technology$128,292 $(71,147)$57,145 2.36
User base2,997 (1,870)1,127 1.00
Customer relationships86,691 (41,170)45,521 2.80
Non-compete agreement2,402 (1,521)881 1.84
Assembled workforce60,800 (35,699)25,101 0.69
Trade Relationships3,400 (756)2,644 2.34
In-process research and development(1)
2,100 — 2,100 N/A
Indefinite-lived intangible assets
Domain name250 — 250 N/A
Licenses26,900 — 26,900 N/A
Total$313,832 $(152,163)$161,669 
__________________
(1)Amortization begins once the technology is placed in service. IPR&D is expected to have a useful life of three years once placed in service.
As of December 31, 2021Gross Carrying AmountAccumulated AmortizationIntangible Assets, NetWeighted Average Remaining Useful Life (in Years)
Amortizing intangible assets
Acquired developed technology$100,908 $(34,865)$66,043 1.97
User base2,997 (1,020)1,977 1.75
Customer relationships79,491 (27,789)51,702 3.68
Non-compete agreement2,402 (1,161)1,241 2.58
Assembled workforce60,800 (8,324)52,476 1.43
In-process research and development(1)
3,000 — 3,000 N/A
Indefinite-lived intangible assets
Domain name250 — 250 N/A
Total$249,848 $(73,159)$176,689 
__________________
(1)Amortization begins once the technology is placed in service. IPR&D is expected to have a useful life of three years once placed in service.
Crypto assets held consisted of the following (in thousands):
September 30,December 31,
20222021
Recorded at impaired cost
Crypto assets held as investments$289,587 $209,415 
Crypto assets held for operating purposes(1)
123,514 357,093 
Total crypto assets held recorded at impaired cost413,101 566,508 
Recorded at fair value(2)
Crypto assets held as investments2,392 — 
Crypto assets borrowed207,580 421,685 
Total crypto assets held recorded at fair value209,972 421,685 
Total crypto assets held$623,073 $988,193 
__________________
(1)Crypto assets held as of September 30, 2022 and December 31, 2021 includes $3.3 million and $38.1 million, respectively, of crypto assets loaned to customers as these did not meet the criteria for derecognition.
(2)Recorded at fair value as these crypto assets are held as the hedged item in qualifying fair value hedges.
Schedule of indefinite-lived intangible assets
Intangible assets, net consisted of the following (in thousands, except years data):

As of September 30, 2022Gross Carrying AmountAccumulated AmortizationIntangible Assets, NetWeighted Average Remaining Useful Life (in Years)
Amortizing intangible assets
Acquired developed technology$128,292 $(71,147)$57,145 2.36
User base2,997 (1,870)1,127 1.00
Customer relationships86,691 (41,170)45,521 2.80
Non-compete agreement2,402 (1,521)881 1.84
Assembled workforce60,800 (35,699)25,101 0.69
Trade Relationships3,400 (756)2,644 2.34
In-process research and development(1)
2,100 — 2,100 N/A
Indefinite-lived intangible assets
Domain name250 — 250 N/A
Licenses26,900 — 26,900 N/A
Total$313,832 $(152,163)$161,669 
__________________
(1)Amortization begins once the technology is placed in service. IPR&D is expected to have a useful life of three years once placed in service.
As of December 31, 2021Gross Carrying AmountAccumulated AmortizationIntangible Assets, NetWeighted Average Remaining Useful Life (in Years)
Amortizing intangible assets
Acquired developed technology$100,908 $(34,865)$66,043 1.97
User base2,997 (1,020)1,977 1.75
Customer relationships79,491 (27,789)51,702 3.68
Non-compete agreement2,402 (1,161)1,241 2.58
Assembled workforce60,800 (8,324)52,476 1.43
In-process research and development(1)
3,000 — 3,000 N/A
Indefinite-lived intangible assets
Domain name250 — 250 N/A
Total$249,848 $(73,159)$176,689 
__________________
(1)Amortization begins once the technology is placed in service. IPR&D is expected to have a useful life of three years once placed in service.
Schedule of finite-lived intangible assets, future amortization expense
The expected future amortization expense for intangible assets other than IPR&D as of September 30, 2022 is as follows (in thousands):
2022 (for the remainder of)$25,352 
202367,591 
202421,360 
202513,119 
20264,818 
Thereafter179 
Total expected future amortization expense$132,419 
v3.22.2.2
CUSTOMER ASSETS AND LIABILITIES (Tables)
 9 Months Ended
Sep. 30, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Schedule of Customers' Cash and Crypto Positions
The following table presents customers’ cash and crypto positions (in thousands):
September 30,December 31,
20222021
Customer custodial cash$6,591,105 $10,526,233 
Customer crypto assets95,113,124 — 
Total customer assets$101,704,229 $10,526,233 
Customer custodial cash liabilities$6,357,657 $10,480,612 
Customer crypto liabilities95,113,124 — 
Total customer liabilities$101,470,781 $10,480,612 
Schedule of Crypto Safeguarding Indemnification Asset and Crypto Asset Safeguarding Liability
The following table sets forth the fair value of customer crypto assets, as shown in the condensed consolidated balance sheets, as customer crypto assets and customer crypto liabilities, as of September 30, 2022 (in billions):
Fair Value
Percentage of Total(1)
Bitcoin$39.9 42.0 %
Ethereum24.1 25.3 %
Other crypto assets31.1 32.7 %
Total customer crypto assets$95.1 100.0 %
__________________
(1)As of September 30, 2022, no assets other than Bitcoin and Ethereum individually represented more than 5% of total customer crypto assets.
v3.22.2.2
PREPAID EXPENSES AND OTHER ASSETS (Tables)
 9 Months Ended
Sep. 30, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Schedule of prepaid expenses and other current and non-current assets
Prepaid expenses and other current assets, and other non-current assets consisted of the following (in thousands):
September 30,December 31,
20222021
Prepaid expenses and other current assets
Prepaid expenses$91,366 $123,246 
Deposits2,524 9,658 
Fair value adjustments related to foreign currency forward contracts(1)
22,935 — 
Cash collateral posted against foreign currency forward contracts(1)
145,000 — 
Other15,219 2,945 
Total prepaid expenses and other current assets$277,044 $135,849 
Other non-current assets
Strategic investments$357,042 $363,950 
Deferred tax assets1,014,736 573,547 
Deposits10,542 13,347 
Other41 1,463 
Total other non-current assets$1,382,361 $952,307 
__________________
(1)See Note 12. Derivatives for additional details.
Schedule of other investments accounted for under the measurement alternative The changes in the carry value of strategic investments accounted for under the measurement alternative are presented below (in thousands):
Nine Months Ended September 30,
20222021
Carrying amount, beginning of period$352,431 $26,146 
Net additions(1)
57,058 242,196 
Upward adjustments879 3,084 
Previously held interest in Bison Trails (see Note 4)— (2,000)
Impairments and downward adjustments(70,631)(50)
Carrying amount, end of period(2)
$339,737 $269,376 
__________________
(1)Net additions include additions from purchases and reductions due to exits of securities and reclassifications due to changes to capital structure.
(2)Excludes $17.3 million and $10.5 million as of September 30, 2022 and September 30, 2021, respectively, of strategic investments that are not accounted for under the measurement alternative.
v3.22.2.2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)
 9 Months Ended
Sep. 30, 2022
Payables and Accruals [Abstract]  
Schedule of accounts payable and accrued expenses
Accrued expenses and other current liabilities consisted of the following (in thousands):
September 30,December 31,
20222021
Accrued expenses$120,769 $195,810 
Accrued payroll and payroll related104,543 146,313 
Income taxes payable8,495 4,553 
Short-term borrowings512 20,060 
Other payables(1)
63,782 72,823 
Total accrued expenses and other current liabilities$298,101 $439,559 
__________________
(1)Includes other payables denominated in crypto assets of $13.1 million as of September 30, 2022 and an immaterial amount as of December 31, 2021. See Note 12. Derivatives for additional details.
v3.22.2.2
INDEBTEDNESS (Tables)
 9 Months Ended
Sep. 30, 2022
Debt Disclosure [Abstract]  
Schedule of Long-Term Debt Instruments
The components of indebtedness were as follows as of September 30, 2022 (in thousands, except percentages):
IndebtednessEffective Interest RatePrincipal AmountUnamortized Debt Discount and Issuance CostsNet Carrying Amount
0.50% 2026 Convertible Notes due on June 1, 2026
0.98 %$1,437,500 $(24,903)$1,412,597 
3.38% 2028 Senior Notes due on October 1, 2028
3.57 %1,000,000 (10,413)989,587 
3.63% 2031 Senior Notes due on October 1, 2031
3.77 %1,000,000 (10,947)989,053 
Total$3,437,500 $(46,263)$3,391,237 
The components of indebtedness were as follows as of December 31, 2021 (in thousands, except percentages):
IndebtednessEffective Interest RatePrincipal AmountUnamortized Debt Discount and Issuance CostsNet Carrying Amount
0.50% 2026 Convertible Notes due on June 1, 2026
0.98 %$1,437,500 $(29,436)$1,408,064 
3.38% 2028 Senior Notes due on October 1, 2028
3.57 %1,000,000 (11,565)988,435 
3.63% 2031 Senior Notes due on October 1, 2031
3.77 %1,000,000 (11,704)988,296 
Total$3,437,500 $(52,705)$3,384,795 
Interest Expense Disclosure
The following table summarizes the interest expense for the 2026 Convertible Notes, the 2028 Senior Notes and the 2031 Senior Notes (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
Coupon interest$19,296 $5,300 $57,937 $5,300 
Amortization of debt discount and issuance costs2,204 1,672 6,442 2,420 
Total$21,500 $6,972 $64,379 $7,720 
v3.22.2.2
DERIVATIVES (Tables)
 9 Months Ended
Sep. 30, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Description of derivatives and related hedge accounting designation
The following outlines the Company’s derivatives and the related hedge accounting designation, as applicable.
Type of DerivativeDescription of DerivativeLocation of Host Contract and Derivative on Balance Sheets
Crypto asset borrowings(1)
The Company borrowed crypto assets that resulted in the obligation to deliver a fixed amount of crypto assets in the future.
Crypto asset borrowings
Accounts receivable denominated in crypto assetsThe Company provided services for which, under the contract, the customer pays in crypto assets. The amount of crypto assets are fixed at the time of invoicing. The right to receive fixed amounts of crypto assets consists of a receivable host contract and an embedded forward contract to purchase crypto assets.
Accounts and loans receivable, net of allowance
Other payables denominated in crypto assetsThe Company entered into arrangements that result in the obligation to deliver a fixed amount of crypto assets in the future.Accrued expenses and other current liabilities
Crypto asset futures(1)
The Company entered into short positions on futures contracts to minimize the exposure on the change in the fair value price of crypto assets held.
Accounts and loans receivable, net of allowance
Foreign currency forward contractsThe Company entered into foreign currency forward contracts, with maturities of 12 months or less, to offset the foreign currency exchange risk of its assets and liabilities denominated in foreign currencies. These contracts are not designated as hedging instruments and reduce, but do not entirely eliminate, the impact of foreign currency exchange rate movements on the Company’s assets and liabilities.Prepaid expenses and other current assets/ Accrued expenses and other current liabilities
__________________
(1)     For risk management purposes, the Company applies hedge accounting using these derivative instruments in qualifying fair value hedges to primarily hedge the fair value exposure of crypto asset prices.
Schedule of the notional amount of derivative contracts outstanding
The following table summarizes the notional amounts of derivative instruments outstanding, measured in U.S. dollar equivalents (in thousands):
September 30,December 31,
20222021
Designated as hedging instrument
Crypto asset borrowings with embedded derivatives
$210,075 $669,445 
Crypto asset futures(1)
771 — 
Not designated as hedging instrument
Accounts receivable denominated in crypto assets16,748 17,415 
Other payables denominated in crypto assets13,627 — 
Crypto asset futures(1)
994 — 
Foreign currency forward contracts(1)
1,100,000 — 
__________________
(1)    Derivative transactions are measured in terms of the notional amount; however, this amount is not recorded on the condensed consolidated balance sheets and is not, when viewed in isolation, a meaningful measure of the risk profile of the derivative instruments. The notional amount is generally not exchanged, but is used only as the underlying basis on which the value of exchange payments or settlement under these contracts are determined.
The following tables summarize information on derivative assets and liabilities that are reflected in the Company’s condensed consolidated balance sheets, by accounting designation (in thousands):
Gross Derivative AssetsGross Derivative Liabilities
September 30, 2022Not Designated as HedgesDesignated as HedgesTotal Derivative AssetsNot Designated as HedgesDesignated as HedgesTotal Derivative Liabilities
Crypto asset borrowings with embedded derivatives(1)
$— $3,580 $3,580 $— $3,183 $3,183 
Accounts receivable denominated in crypto assets— — — 5,791 — 5,791 
Other payables denominated in crypto assets4,261 — 4,261 3,705 — 3,705 
Foreign currency forward contracts22,935 — 22,935 — — — 
Total fair value of derivative assets and liabilities$27,196 $3,580 $30,776 $9,496 $3,183 $12,679 
__________________
(1)    During the nine months ended September 30, 2022, the fee on these borrowings ranged from 0.0% to 7.5%. During the nine months ended September 30, 2021, the fee on these borrowings ranged from 0.0% to 3.0%. During the three and nine months ended September 30, 2022, the Company incurred $0.9 million and $3.9 million, respectively, of borrowing fees in crypto assets. During the three and nine months ended September 30, 2021, the Company incurred $2.3 million and $9.5 million, respectively, of borrowing fees in crypto assets. Borrowing fees are included in other operating expense, net in the condensed consolidated statements of operations.

Gross Derivative AssetsGross Derivative Liabilities
December 31, 2021Not Designated as HedgesDesignated as HedgesTotal Derivative AssetsNot Designated as HedgesDesignated as HedgesTotal Derivative Liabilities
Crypto asset borrowings with embedded derivatives$— $336,396 $336,396 $— $93,616 $93,616 
Accounts receivable denominated in crypto assets9,033 — 9,033 — — — 
Total fair value of derivative assets and liabilities$9,033 $336,396 $345,429 $— $93,616 $93,616 
The following amounts were recorded in the condensed consolidated balance sheets related to certain cumulative fair value hedge basis adjustments that are expected to reverse through the condensed consolidated statements of operations in future periods as an adjustment to other operating expense, net (in thousands):
Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Items
September 30, 2022Carrying Amount of the Hedged ItemsActive Hedging RelationshipsDiscontinued Hedging RelationshipsTotal
Crypto assets held$209,972 $(1,025)$448 $(577)
Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Items
December 31, 2021Carrying Amount of the Hedged ItemsActive Hedging RelationshipsDiscontinued Hedging RelationshipsTotal
Crypto assets held$421,685 $(240,771)$— $(240,771)
Offsetting assets The following table provides the collateral posted (in thousands):
September 30,December 31,
20222021
Cash collateral posted(1)
$145,000 $— 
__________________
(1)    Right to reclaim cash collateral related to derivatives recognized in prepaid expenses and other current assets in the condensed consolidated balance sheets.
Offsetting liabilities The following table provides the collateral posted (in thousands):
September 30,December 31,
20222021
Cash collateral posted(1)
$145,000 $— 
__________________
(1)    Right to reclaim cash collateral related to derivatives recognized in prepaid expenses and other current assets in the condensed consolidated balance sheets.
Schedule of gains (losses) recorded in income
Gains (losses) on derivative instruments recognized in the Company’s condensed consolidated statements of operations were as follows (in thousands):
Three Months Ended September 30, 2022Three Months Ended September 30, 2021
DerivativesHedged ItemsIncome Statement ImpactDerivativesHedged ItemsIncome Statement Impact
Designated as fair value hedging instruments
Crypto asset borrowings with embedded derivatives(1)
$(211,110)$207,112 $(3,998)$(75,999)$75,143 $(856)
Crypto asset futures(1)
225 (77)148 — — — 
Not designated as hedging instruments
Accounts receivable denominated in crypto assets(1)
(4,213)— (4,213)— — — 
Other payables denominated in crypto assets(1)
(2,367)— (2,367)— — — 
Crypto asset futures(1)
(566)— (566)— — — 
Foreign currency forward contracts(2)
22,935 — 22,935 — — — 
Total$(195,096)$207,035 $11,939 $(75,999)$75,143 $(856)
Nine Months Ended September 30, 2022Nine Months Ended September 30, 2021
DerivativesHedged ItemsIncome Statement ImpactDerivativesHedged ItemsIncome Statement Impact
Designated as fair value hedging instruments
Crypto asset borrowings with embedded derivatives(1)
$148,959 $(154,228)$(5,269)$105,558 $(93,973)$11,585 
Crypto asset futures(1)
13,237 (12,339)898 — — — 
Not designated as hedging instruments
Crypto asset borrowings with embedded derivatives(1)
6,626 — 6,626 — — — 
Accounts receivable denominated in crypto assets(1)
(14,476)— (14,476)— — — 
Other payables denominated in crypto assets(1)
143 — 143 — — — 
Crypto asset futures(1)
(1,077)— (1,077)— — — 
Foreign currency forward contracts(2)
22,935 — 22,935 — — — 
Total$176,347 $(166,567)$9,780 $105,558 $(93,973)$11,585 
__________________
(1)Changes in fair value are recognized in other operating expense, net in the condensed consolidated statements of operations.
(2)Changes in fair value are recognized in other expense, net, which partially offset gains and losses due to the remeasurement of certain foreign currency denominated assets and liabilities which are also recognized in other expense, net in the condensed consolidated statements of operations.
v3.22.2.2
FAIR VALUE MEASUREMENTS (Tables)
 9 Months Ended
Sep. 30, 2022
Fair Value Disclosures [Abstract]  
Schedule of fair value of assets and liabilities
The following table sets forth by level, within the fair value hierarchy, the Company’s assets and liabilities measured and recorded at fair value on a recurring basis (in thousands):
September 30, 2022
Level 1Level 2Level 3Total
Assets
Cash equivalents(1)
$2,282,077 $— $— $2,282,077 
Customer custodial cash(2)
1,226,646 — — 1,226,646 
Crypto assets held(3)
209,972 — — 209,972 
Derivative assets(4)
— 30,776 — 30,776 
Customer crypto assets— 95,113,124 — 95,113,124 
Total assets$3,718,695 $95,143,900 $— $98,862,595 
Liabilities
Derivative liabilities(4)
$— $12,679 $— $12,679 
Contingent consideration arrangement— — 4,213 4,213 
Customer crypto liabilities— 95,113,124 — 95,113,124 
Total liabilities$— $95,125,803 $4,213 $95,130,016 
December 31, 2021
Level 1Level 2Level 3Total
Assets
Cash equivalents(1)
$4,813,621 $— $— $4,813,621 
Customer custodial cash(2)
3,566,072 — — 3,566,072 
Crypto assets held(3)
— 421,685 — 421,685 
Derivative assets(4)
— 345,429 — 345,429 
Total assets$8,379,693 $767,114 $— $9,146,807 
Liabilities
Derivative liabilities(4)
$— $93,616 $— $93,616 
Contingent consideration arrangement— — 14,828 14,828 
Total liabilities$— $93,616 $14,828 $108,444 
__________________
(1)Represents money market funds. Excludes $2.6 billion of corporate cash held in deposit at banks and $167.8 million held at venues, which were not measured and recorded at fair value as of September 30, 2022. Excludes $2.1 billion of corporate cash held in deposit at banks and $168.9 million held at venues, which were not measured and recorded at fair value as of December 31, 2021.
(2)Represents money market funds. Excludes customer custodial cash of $5.4 billion and $7.0 billion held in deposit at financial institutions and not measured and recorded at fair value as of September 30, 2022 and December 31, 2021, respectively.
(3)Includes crypto assets held that have been designated as hedged items in fair value hedges and excludes crypto assets of $413.1 million and $566.5 million held at cost as of September 30, 2022 and December 31, 2021, respectively.
(4)See Note 12. Derivatives for additional details.
v3.22.2.2
COMMON STOCK (Tables)
 9 Months Ended
Sep. 30, 2022
Equity [Abstract]  
Schedule of common stock reserved for issuance
The Company has reserved shares of Class A common stock and Class B common stock for issuance for the following purposes (in thousands):
September 30,December 31,
20222021
Class A common stock
Options issued and outstanding under the 2013 Amended and Restated Stock Plan (the “2013 Plan”)1,036 1,569 
Options issued and outstanding under the 2019 Equity Incentive Plan (the “2019 Plan”)26,365 29,311 
RSUs issued and outstanding under the 2019 Plan3,004 5,851 
Options issued and outstanding under the 2021 Equity Incentive Plan (the “2021 Plan”) 922 — 
RSUs issued and outstanding under the 2021 Plan3,690 1,402 
Shares available for future issuance under the 2021 Plan43,794 35,856 
Shares available for future issuance under the 2021 ESPP6,941 5,125 
Replacement options issued and outstanding from the Tagomi acquisition1 4 
Replacement options issued and outstanding from the Bison Trails acquisition152 223 
RSUs issued and outstanding from other acquisitions160 229 
Shares available for future issuance of warrants2,296 2,296 
Total Class A common stock shares reserved88,361 81,866 
Class B common stock
Options issued and outstanding under the 2013 Plan4,935 6,101 
Total Class B common stock shares reserved4,935 6,101 
v3.22.2.2
STOCK-BASED COMPENSATION (Tables)
 9 Months Ended
Sep. 30, 2022
Share-Based Payment Arrangement [Abstract]  
Schedule of activity of options outstanding
Activity of options outstanding are as follows (in thousands, except per share and years data):
Options OutstandingWeighted Average Exercise Price per ShareWeighted Average Remaining Contractual Life (Years)Aggregate Intrinsic Value
Balance at January 1, 202237,208 $18.60 7.83$8,698,078 
Issued937 177.79 
Exercised(3,012)13.59 
Forfeited and cancelled(1,722)22.79 
Balance at September 30, 202233,411 23.30 7.191,481,640 
Vested and exercisable at September 30, 202218,506 18.19 6.70882,457 
Vested and expected to vest at September 30, 202227,277 23.26 7.041,229,963 
Schedule of share-based payment award, options, valuation assumptions
The assumptions used under the Black-Scholes-Merton Option-Pricing Model and the weighted average calculated value of the options granted to employees were as follows:
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
Dividend yield0.0 %N/A0.0 %0.0 %
Expected volatility76.1 %N/A59.3 %44.0 %
Expected term (in years)5.8N/A5.84.8
Risk-free interest rate3.0 %N/A2.1 %0.5 %
Schedule of activity of RSUs outstanding
Activity of RSUs outstanding are as follows (in thousands, except per share data):
Number of SharesWeighted-Average Grant Date Fair Value per Share
Balance at January 1, 20227,482 $157.22 
Granted7,860 144.69 
Vested(6,906)153.57 
Forfeited and cancelled(1,582)164.86 
Balance at September 30, 20226,854 144.64 
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, 20222,014 $137.57 
Granted323 137.05 
Vested(925)129.72 
Forfeited and cancelled— — 
Balance at September 30, 20221,412 143.33 
Schedule of stock based compensation
Stock-based compensation is included in the following components of expenses on the accompanying condensed consolidated statements of operations (in thousands):
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
Technology and development$275,817 $176,785 $793,573 $381,030 
Sales and marketing18,461 10,095 52,813 20,299 
General and administrative97,163 77,314 288,692 156,828 
Total$391,441 $264,194 $1,135,078 $558,157 
v3.22.2.2
NET (LOSS) INCOME PER SHARE (Tables)
 9 Months Ended
Sep. 30, 2022
Earnings Per Share [Abstract]  
Schedule of computation of net (loss) income per share
The computation of net (loss) income per share is as follows (in thousands, except per share amounts):
Three Months Ended September 30,Nine Months Ended September 30,
2022202120222021
Basic net (loss) income per share:
Numerator
Net (loss) income$(544,635)$406,100 $(2,067,948)$2,783,912 
Less: Income allocated to participating securities— (3,757)— (542,122)
Net (loss) income attributable to common stockholders, basic$(544,635)$402,343 $(2,067,948)$2,241,790 
Denominator
Weighted-average shares of common stock used to compute net (loss) income per share attributable to common stockholders, basic223,916 209,604 220,816 165,045 
Net (loss) income per share attributable to common stockholders, basic$(2.43)$1.92 $(9.37)$13.58 
Diluted net (loss) income per share:
Numerator
Net (loss) income$(544,635)$406,100 $(2,067,948)$2,783,912 
Less: Income allocated to participating securities— (3,167)— (448,463)
Add: Interest on convertible notes, net of tax— 3,087 — 3,638 
Less: Fair value gain on contingent consideration arrangement, net of tax — (680)(5,395)(680)
Net (loss) income attributable to common stockholders, diluted$(544,635)$405,340 $(2,073,343)$2,338,407 
Denominator
Weighted-average shares of common stock used to compute net (loss) income per share attributable to common stockholders, basic223,916 209,604 220,816 165,045 
Weighted-average effect of potentially dilutive securities:
Stock options— 33,122 — 38,419 
RSUs— 3,924 — 3,604 
Restricted common stock— 5 — 3 
Warrants— — — 97 
Convertible notes— 3,880 — 1,883 
Contingent consideration— 1 40 1 
Weighted-average shares of common stock used to compute net (loss) income per share attributable to common stockholders, diluted223,916 250,536 220,856 209,052 
Net (loss) income per share attributable to common stockholders, diluted$(2.43)$1.62 $(9.39)$11.19 
Schedule of potentially dilutive shares
The following potentially dilutive shares were not included in the calculation of diluted shares outstanding as the effect would have been anti-dilutive (in thousands):
Three Months Ended September 30Nine Months Ended September 30
2022 202120222021
Stock options33,411 6,134 33,411 6,134 
RSUs6,854 107 6,854 107 
Convertible notes3,880 — 3,880 — 
Restricted common stock1,740 65 1,740 65 
ESPP1,030 284 1,030 284 
Contingent consideration76 — — — 
Total46,991 6,590 46,915 6,590 
v3.22.2.2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2022
Jan. 01, 2022
Dec. 31, 2021
Concentration Risk [Line Items]      
USDC held $ 368,121   $ 100,096
Customer crypto assets 95,113,124 [1] $ 267,600,000 0 [1]
Customer crypto liabilities $ 95,113,124 [2] $ 267,600,000 $ 0 [2]
Accounts Receivable | Customer Concentration Risk | One Customer      
Concentration Risk [Line Items]      
Concentration risk, percentage (more than) 10.00%    
[1] Safeguarding assets
[2] Safeguarding liabilities
v3.22.2.2
RESTRUCTURING - Narrative (Details)
 1 Months Ended
Jun. 30, 2022
employee
Restructuring and Related Activities [Abstract]  
Number of positions eliminated, period percent 18.00%
Number of positions eliminated 1,100
v3.22.2.2
RESTRUCTURING - Schedule of Restructuring Expenses (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Restructuring Cost and Reserve [Line Items]        
Restructuring charges $ (1,232) $ 0 $ 41,221 $ 0
Cumulative Costs Incurred to Date 41,221   41,221  
Separation pay        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges 0   39,259  
Cumulative Costs Incurred to Date 39,259   39,259  
Other personnel costs        
Restructuring Cost and Reserve [Line Items]        
Restructuring charges (1,232)   1,962  
Cumulative Costs Incurred to Date $ 1,962   $ 1,962  
v3.22.2.2
RESTRUCTURING - Schedule of Restructuring Reserve and Changes in Balance (Details)
$ in Thousands
 9 Months Ended
Sep. 30, 2022
USD ($)
Restructuring Reserve [Roll Forward]  
Expenses Incurred $ 42,453
Payments (39,420)
Adjustment to Other Personnel Costs (1,232)
Accrued Balance as of September 30, 2022 1,801
Separation pay  
Restructuring Reserve [Roll Forward]  
Expenses Incurred 39,259
Payments (37,940)
Adjustment to Other Personnel Costs 0
Accrued Balance as of September 30, 2022 1,319
Other personnel costs  
Restructuring Reserve [Roll Forward]  
Expenses Incurred 3,194
Payments (1,480)
Adjustment to Other Personnel Costs (1,232)
Accrued Balance as of September 30, 2022 $ 482
v3.22.2.2
ACQUISITIONS - Narrative (Details)
$ in Thousands
 9 Months Ended 12 Months Ended
Feb. 01, 2022
USD ($)
shares
Jan. 04, 2022
USD ($)
shares
Feb. 08, 2021
USD ($)
shares
Sep. 30, 2022
USD ($)
Sep. 30, 2021
USD ($)
businessCombination
tranche
shares
Dec. 31, 2021
USD ($)
Dec. 31, 2020
USD ($)
Business Acquisition [Line Items]              
Measurement period adjustments       $ 6,269   $ 0  
Goodwill       1,073,906   $ 625,758 $ 77,212
Unbound Security, Inc.              
Business Acquisition [Line Items]              
Business combination, provisional information, initial accounting incomplete, adjustment, other noncurrent assets       4,100      
Measurement period adjustments       4,100      
Total purchase consideration   $ 257,984          
Cash subject to an indemnity holdback   $ 21,700          
Holdback release term   18 months          
Total acquisition costs   $ 3,000          
Goodwill   $ 222,732          
Unbound Security, Inc. | Class A common stock              
Business Acquisition [Line Items]              
Number of shares to subject to indemnity holdback (in shares) | shares   85,324          
FairXchange, Inc.              
Business Acquisition [Line Items]              
Business combination, provisional information, initial accounting incomplete, adjustment, other noncurrent assets       300      
Measurement period adjustments       300      
Total purchase consideration $ 275,090            
Cash subject to an indemnity holdback $ 4,700            
Holdback release term 15 months            
Goodwill $ 231,685            
FairXchange, Inc. | Class A common stock              
Business Acquisition [Line Items]              
Number of shares to subject to indemnity holdback (in shares) | shares 83,035            
FairXchange, Inc. | Common Stock, Not Subject to Indemnity Holdback | Class A common stock              
Business Acquisition [Line Items]              
Number of shares included in purchase consideration (in shares) | shares 170,397            
FairXchange, Inc. | General and administrative              
Business Acquisition [Line Items]              
Total acquisition costs $ 1,100            
Bison Trails Co.              
Business Acquisition [Line Items]              
Total purchase consideration     $ 457,268        
Holdback release term     18 months        
Total acquisition costs     $ 3,700        
Gain on remeasurement     8,800        
Goodwill     $ 404,167        
Bison Trails Co. | Class A common stock              
Business Acquisition [Line Items]              
Number of shares to subject to indemnity holdback (in shares) | shares     496,434        
Other Acquisitions              
Business Acquisition [Line Items]              
Business combination, provisional information, initial accounting incomplete, adjustment, other noncurrent assets       1,900      
Measurement period adjustments       $ 1,900      
Total purchase consideration         $ 135,700    
Number of businesses acquired | businessCombination         3    
Contingent consideration arrangement, number of tranches | tranche         2    
Goodwill         $ 86,041    
Goodwill, expected to be deductible         $ 77,100    
Other Acquisitions | Contingent Consideration Tranche One              
Business Acquisition [Line Items]              
Contingent consideration arrangement, settlement term         1 year    
Other Acquisitions | Contingent Consideration Tranche Two              
Business Acquisition [Line Items]              
Contingent consideration arrangement, settlement term         2 years    
Other Acquisitions | Class A common stock | Contingent Consideration Tranche One              
Business Acquisition [Line Items]              
Number of shares to be issued for contingent consideration (in shares) | shares         75,534    
Other Acquisitions | Class A common stock | Contingent Consideration Tranche Two              
Business Acquisition [Line Items]              
Number of shares to be issued for contingent consideration (in shares) | shares         75,534    
Other Acquisitions | Common Stock, Not Subject to Indemnity Holdback | Class A common stock              
Business Acquisition [Line Items]              
Number of shares included in purchase consideration (in shares) | shares         160,840    
Issuance term for shares included in purchase consideration         6 months    
Other Acquisitions | Common Stock, Subject to indemnity Holdback | Class A common stock              
Business Acquisition [Line Items]              
Number of shares included in purchase consideration (in shares) | shares         39,663    
Other Acquisitions | Common Stock, Subject to indemnity Holdback | Class A common stock | Minimum              
Business Acquisition [Line Items]              
Issuance term for shares included in purchase consideration         15 months    
Other Acquisitions | Common Stock, Subject to indemnity Holdback | Class A common stock | Maximum              
Business Acquisition [Line Items]              
Issuance term for shares included in purchase consideration         18 months    
Other Acquisitions | General and administrative              
Business Acquisition [Line Items]              
Total acquisition costs         $ 3,500    
Other Acquisitions | Technology and development              
Business Acquisition [Line Items]              
Total acquisition costs         $ 3,200    
v3.22.2.2
ACQUISITIONS - Schedule of Unbound purchase consideration (Details) - Unbound Security, Inc.
$ in Thousands
Jan. 04, 2022
USD ($)
Business Acquisition [Line Items]  
Cash $ 151,424
Cash payable 126
Total purchase consideration 257,984
Class A common stock  
Business Acquisition [Line Items]  
Equity interests issued and issuable 103,977
RSUs  
Business Acquisition [Line Items]  
Equity interests issued and issuable $ 2,457
v3.22.2.2
ACQUISITIONS - Schedule of Unbound net assets acquired (Details) - USD ($)
$ in Thousands
Sep. 30, 2022
Jan. 04, 2022
Dec. 31, 2021
Dec. 31, 2020
Business Acquisition [Line Items]        
Goodwill $ 1,073,906   $ 625,758 $ 77,212
Unbound Security, Inc.        
Business Acquisition [Line Items]        
Cash and cash equivalents   $ 10,560    
Restricted cash   573    
Accounts and loans receivable, net of allowance   4,981    
Prepaid expenses and other current assets   4,182    
Lease right-of-use assets   1,059    
Property and equipment, net   1,248    
Goodwill   222,732    
Intangible assets, net   28,500    
Other non-current assets   3,476    
Total assets   277,311    
Accounts payable   719    
Accrued expenses and other current liabilities   11,325    
Lease liabilities   1,059    
Other non-current liabilities   6,224    
Total liabilities   19,327    
Net assets acquired   $ 257,984    
v3.22.2.2
ACQUISITIONS - Schedule of Unbound finite-lived intangible assets acquired (Details) - Unbound Security, Inc.
$ in Thousands
Jan. 04, 2022
USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]  
Intangible assets, net $ 28,500
Developed technology  
Acquired Finite-Lived Intangible Assets [Line Items]  
Intangible assets, net $ 15,700
Developed technology | Minimum  
Acquired Finite-Lived Intangible Assets [Line Items]  
Useful Life at Acquisition (in Years) 1 year
Developed technology | Maximum  
Acquired Finite-Lived Intangible Assets [Line Items]  
Useful Life at Acquisition (in Years) 5 years
IPR&D  
Acquired Finite-Lived Intangible Assets [Line Items]  
Intangible assets, net $ 2,500
Customer relationships  
Acquired Finite-Lived Intangible Assets [Line Items]  
Intangible assets, net $ 10,300
Useful Life at Acquisition (in Years) 2 years
v3.22.2.2
ACQUISITIONS - Schedule of FairXchange purchase consideration (Details) - FairXchange, Inc.
$ in Thousands
Feb. 01, 2022
USD ($)
Business Acquisition [Line Items]  
Cash $ 56,726
Cash payable 10,442
Total purchase consideration 275,090
Common Stock Issued | Class A common stock  
Business Acquisition [Line Items]  
Class A common stock of the Company 174,229
Common Stock to be Issued | Class A common stock  
Business Acquisition [Line Items]  
Class A common stock of the Company $ 33,693
v3.22.2.2
ACQUISITIONS - Schedule of FairXchange net assets acquired (Details) - USD ($)
$ in Thousands
Sep. 30, 2022
Feb. 01, 2022
Dec. 31, 2021
Dec. 31, 2020
Business Acquisition [Line Items]        
Goodwill $ 1,073,906   $ 625,758 $ 77,212
FairXchange, Inc.        
Business Acquisition [Line Items]        
Cash and cash equivalents   $ 10,867    
Accounts and loans receivable, net of allowance   411    
Prepaid expenses and other current assets   20    
Intangible assets, net   41,000    
Goodwill   231,685    
Other non-current assets   8,295    
Total assets   292,278    
Accounts payable   472    
Accrued expenses and other current liabilities   5,796    
Other non-current liabilities   10,920    
Total liabilities   17,188    
Net assets acquired   $ 275,090    
v3.22.2.2
ACQUISITIONS - Schedule of FairXchange finite-lived intangible assets acquired (Details) - FairXchange, Inc.
$ in Thousands
Feb. 01, 2022
USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]  
Intangible assets, net $ 41,000
DCM License  
Acquired Finite-Lived Intangible Assets [Line Items]  
Intangible assets, net 26,900
Developed technology  
Acquired Finite-Lived Intangible Assets [Line Items]  
Intangible assets, net $ 10,700
Useful Life at Acquisition (in Years) 5 years
Trading relationships  
Acquired Finite-Lived Intangible Assets [Line Items]  
Intangible assets, net $ 3,400
Useful Life at Acquisition (in Years) 3 years
v3.22.2.2
ACQUISITIONS - Schedule of Bison Trails purchase consideration (Details) - Bison Trails Co.
$ in Thousands
Feb. 08, 2021
USD ($)
Business Acquisition [Line Items]  
Class A common stock of the Company $ 389,314
Previously held interest on acquisition date 10,863
Cash 28,726
Replacement of Bison Trails options 28,365
Total purchase consideration $ 457,268
v3.22.2.2
ACQUISITIONS - Schedule of Bison Trails net assets acquired (Details) - USD ($)
$ in Thousands
Sep. 30, 2022
Dec. 31, 2021
Feb. 08, 2021
Dec. 31, 2020
Business Acquisition [Line Items]        
Goodwill $ 1,073,906 $ 625,758   $ 77,212
Bison Trails Co.        
Business Acquisition [Line Items]        
Cash and cash equivalents     $ 12,201  
Crypto assets held     5,177  
Accounts and loans receivable, net of allowance     2,323  
Prepaid expenses and other current assets     122  
Intangible assets, net     39,100  
Goodwill     404,167  
Other non-current assets     1,221  
Lease right-of-use assets     808  
Total assets     465,119  
Accounts payable     526  
Accrued expenses and other current liabilities     1,920  
Lease liabilities     808  
Other non-current liabilities     4,597  
Total liabilities     7,851  
Net assets acquired     $ 457,268  
v3.22.2.2
ACQUISITIONS - Schedule of Bison Trails finite-lived intangible assets acquired (Details) - Bison Trails Co.
$ in Thousands
Feb. 08, 2021
USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]  
Intangible assets, net $ 39,100
IPR&D  
Acquired Finite-Lived Intangible Assets [Line Items]  
Intangible assets, net 1,200
Developed technology  
Acquired Finite-Lived Intangible Assets [Line Items]  
Intangible assets, net $ 36,000
Useful Life at Acquisition (in Years) 3 years
User base  
Acquired Finite-Lived Intangible Assets [Line Items]  
Intangible assets, net $ 1,900
Useful Life at Acquisition (in Years) 3 years
v3.22.2.2
ACQUISITIONS - Schedule of other acquisitions purchase consideration (Details) - Other Acquisitions
$ in Thousands
 9 Months Ended
Sep. 30, 2021
USD ($)
Business Acquisition [Line Items]  
Cash $ 27,795
Cash payable 412
Contingent consideration arrangement 15,752
Total purchase consideration 135,659
Common Stock Issued  
Business Acquisition [Line Items]  
Class A common stock of the Company 51,760
Common Stock to be Issued  
Business Acquisition [Line Items]  
Class A common stock of the Company $ 39,940
v3.22.2.2
ACQUISITIONS - Schedule of other acquisitions net assets acquired (Details) - USD ($)
$ in Thousands
Sep. 30, 2022
Dec. 31, 2021
Sep. 30, 2021
Dec. 31, 2020
Business Acquisition [Line Items]        
Goodwill $ 1,073,906 $ 625,758   $ 77,212
Other Acquisitions        
Business Acquisition [Line Items]        
Cash and cash equivalents     $ 4,915  
Accounts and loans receivable, net of allowance     57  
Prepaid expenses and other current assets     209  
Intangible assets, net     46,100  
Goodwill     86,041  
Total assets     137,322  
Accounts payable     65  
Accrued expenses and other current liabilities     649  
Other non-current liabilities     949  
Total liabilities     1,663  
Net assets acquired     $ 135,659  
v3.22.2.2
ACQUISITIONS - Schedule of other acquisitions finite-lived intangible assets acquired (Details) - Other Acquisitions
$ in Thousands
 9 Months Ended
Sep. 30, 2021
USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]  
Intangible assets, net $ 46,100
Developed technology  
Acquired Finite-Lived Intangible Assets [Line Items]  
Intangible assets, net $ 33,700
Useful Life at Acquisition (in Years) 2 years 8 months 12 days
User base  
Acquired Finite-Lived Intangible Assets [Line Items]  
Intangible assets, net $ 1,000
Useful Life at Acquisition (in Years) 2 years 6 months
IPR&D  
Acquired Finite-Lived Intangible Assets [Line Items]  
Intangible assets, net $ 1,600
Customer relationships  
Acquired Finite-Lived Intangible Assets [Line Items]  
Intangible assets, net $ 9,800
Useful Life at Acquisition (in Years) 5 years
v3.22.2.2
REVENUE - Schedule of revenue disaggregated by source (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Disaggregation of Revenue [Line Items]        
Interest income $ 101,778 $ 8,389 $ 144,746 $ 18,190
Total revenue 590,339 1,311,908 2,565,100 5,340,981
Net revenue        
Disaggregation of Revenue [Line Items]        
Total revenue 576,375 1,234,736 2,543,869 4,864,727
Transaction revenue        
Disaggregation of Revenue [Line Items]        
Revenue 365,868 1,089,656 2,034,118 4,560,617
Retail, net        
Disaggregation of Revenue [Line Items]        
Revenue 346,091 1,021,967 1,928,145 4,305,088
Institutional, net        
Disaggregation of Revenue [Line Items]        
Revenue 19,777 67,689 105,973 255,529
Subscription and services revenue        
Disaggregation of Revenue [Line Items]        
Revenue 210,507 145,080 509,751 304,110
Blockchain rewards        
Disaggregation of Revenue [Line Items]        
Revenue 62,759 77,039 213,064 120,712
Custodial fee revenue        
Disaggregation of Revenue [Line Items]        
Revenue 14,532 31,468 68,404 86,616
Other subscription and services revenue        
Disaggregation of Revenue [Line Items]        
Revenue 31,438 28,184 83,537 78,592
Learning Rewards        
Disaggregation of Revenue [Line Items]        
Revenue 7,400 15,200 15,800 43,200
Other revenue        
Disaggregation of Revenue [Line Items]        
Total revenue 13,964 77,172 21,231 476,254
Crypto asset sales revenue        
Disaggregation of Revenue [Line Items]        
Revenue 8 76,742 625 475,065
Corporate interest and other income        
Disaggregation of Revenue [Line Items]        
Corporate interest and other income $ 13,956 $ 430 $ 20,606 $ 1,189
v3.22.2.2
REVENUE - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Dec. 31, 2021
Disaggregation of Revenue [Line Items]          
Payment period     30 days    
Recognized revenue with related parties $ 1.9 $ 7.7 $ 9.5 $ 21.0  
Amounts receivable from related parties 3.0   3.0   $ 4.5
Due to related parties 34.6   34.6   0.0
Custodial fee revenue          
Disaggregation of Revenue [Line Items]          
Amounts receivable from customers, net of allowance 9.0   9.0   $ 22.4
Crypto asset sales revenue          
Disaggregation of Revenue [Line Items]          
Cost of crypto assets used in fulfilling customer transactions $ 0.2 $ 68.6 $ 0.5 $ 433.8  
v3.22.2.2
REVENUE - Schedule of revenue disaggregated by geographic area (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Disaggregation of Revenue [Line Items]        
Total revenue $ 590,339 $ 1,311,908 $ 2,565,100 $ 5,340,981
United States        
Disaggregation of Revenue [Line Items]        
Total revenue 501,963 1,003,999 2,125,010 4,339,899
Rest of the World        
Disaggregation of Revenue [Line Items]        
Total revenue $ 88,376 $ 307,909 $ 440,090 $ 1,001,082
v3.22.2.2
ACCOUNTS AND LOANS RECEIVABLE, NET OF ALLOWANCE - Schedule of accounts and loans receivable (Details) - USD ($)
Sep. 30, 2022
Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]    
In-transit customer receivables $ 42,552,000 $ 102,720,000
Trade finance receivables 7,512,000 1,865,000
Custodial fee revenue receivable 11,477,000 23,727,000
Loans receivable 116,601,000 218,461,000
Interest and other receivables 79,164,000 73,803,000
Allowance for doubtful accounts (16,952,000) (24,551,000)
Accounts and loans receivable, net of allowance 240,354,000 396,025,000
Loans receivable, allowance for credit loss, excluding accrued interest 0 0
Accounts receivable denominated in crypto assets    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Interest and other receivables 11,000,000 26,400,000
Unlikely to be Collected Financing Receivable    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Allowance for doubtful accounts $ (4,200,000) $ (16,800,000)
v3.22.2.2
ACCOUNTS AND LOANS RECEIVABLE, NET OF ALLOWANCE - Narrative (Details) - USD ($)
Sep. 30, 2022
Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Financing receivable, excluding accrued interest, after allowance for credit loss, current $ 116,600,000 $ 218,500,000
Interest receivable 800,000 1,300,000
Financing receivable, allowance for credit loss, excluding accrued interest, current 0  
Loans receivable 116,601,000 218,461,000
Financial Asset, Past Due    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans receivable $ 0 $ 0
v3.22.2.2
GOODWILL, INTANGIBLE ASSETS, NET AND CRYPTO ASSETS HELD - Schedule of goodwill (Details) - USD ($)
$ in Thousands
 9 Months Ended 12 Months Ended
Sep. 30, 2022
Dec. 31, 2021
Goodwill [Roll Forward]    
Balance, beginning of period $ 625,758 $ 77,212
Additions due to business combinations 454,417 548,546
Measurement period adjustments (6,269) 0
Balance, end of period 1,073,906 $ 625,758
Unbound Security, Inc.    
Goodwill [Roll Forward]    
Measurement period adjustments (4,100)  
FairXchange, Inc.    
Goodwill [Roll Forward]    
Measurement period adjustments (300)  
Other Acquisitions    
Goodwill [Roll Forward]    
Measurement period adjustments $ (1,900)  
v3.22.2.2
GOODWILL, INTANGIBLE ASSETS, NET AND CRYPTO ASSETS HELD - Narrative (Details) - USD ($)
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Dec. 31, 2021
Dec. 31, 2020
Indefinite-lived Intangible Assets [Line Items]            
Accumulated impairment $ 0   $ 0   $ 0 $ 0
Amortization expense of intangible assets 27,700,000 $ 12,300,000 80,000,000 $ 27,500,000    
Impairment of intangible assets (excluding goodwill and crypto assets held) 100,000 0 4,500,000 0    
Crypto asset impairment expense 25,900,000 $ 58,400,000 689,077,000 $ 234,023,000    
Crypto assets loaned to customers            
Indefinite-lived Intangible Assets [Line Items]            
Indefinite-lived intangible assets $ 3,300,000   $ 3,300,000   $ 38,100,000  
v3.22.2.2
GOODWILL, INTANGIBLE ASSETS, NET AND CRYPTO ASSETS HELD - Schedule of intangible assets (Details) - USD ($)
$ in Thousands
 9 Months Ended 12 Months Ended
Sep. 30, 2022
Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]    
Accumulated Amortization $ (152,163) $ (73,159)
Total expected future amortization expense 132,419  
Intangible Assets, Net (Excluding Goodwill) [Abstract]    
Total intangible assets, gross carrying amount 313,832 249,848
Total accumulated amortization (152,163) (73,159)
Intangible assets, net 161,669 176,689
Domain name    
Indefinite-lived Intangible Assets [Line Items]    
Indefinite-lived intangible assets 250 250
Licenses    
Indefinite-lived Intangible Assets [Line Items]    
Indefinite-lived intangible assets 26,900  
Acquired developed technology    
Finite-Lived Intangible Assets [Line Items]    
Intangible assets, gross carrying amount 128,292 100,908
Accumulated Amortization (71,147) (34,865)
Total expected future amortization expense $ 57,145 $ 66,043
Weighted Average Remaining Useful Life (in Years) 2 years 4 months 9 days 1 year 11 months 19 days
Intangible Assets, Net (Excluding Goodwill) [Abstract]    
Total accumulated amortization $ (71,147) $ (34,865)
User base    
Finite-Lived Intangible Assets [Line Items]    
Intangible assets, gross carrying amount 2,997 2,997
Accumulated Amortization (1,870) (1,020)
Total expected future amortization expense $ 1,127 $ 1,977
Weighted Average Remaining Useful Life (in Years) 1 year 1 year 9 months
Intangible Assets, Net (Excluding Goodwill) [Abstract]    
Total accumulated amortization $ (1,870) $ (1,020)
Customer relationships    
Finite-Lived Intangible Assets [Line Items]    
Intangible assets, gross carrying amount 86,691 79,491
Accumulated Amortization (41,170) (27,789)
Total expected future amortization expense $ 45,521 $ 51,702
Weighted Average Remaining Useful Life (in Years) 2 years 9 months 18 days 3 years 8 months 4 days
Intangible Assets, Net (Excluding Goodwill) [Abstract]    
Total accumulated amortization $ (41,170) $ (27,789)
Non-compete agreement    
Finite-Lived Intangible Assets [Line Items]    
Intangible assets, gross carrying amount 2,402 2,402
Accumulated Amortization (1,521) (1,161)
Total expected future amortization expense $ 881 $ 1,241
Weighted Average Remaining Useful Life (in Years) 1 year 10 months 2 days 2 years 6 months 29 days
Intangible Assets, Net (Excluding Goodwill) [Abstract]    
Total accumulated amortization $ (1,521) $ (1,161)
Assembled workforce    
Finite-Lived Intangible Assets [Line Items]    
Intangible assets, gross carrying amount 60,800 60,800
Accumulated Amortization (35,699) (8,324)
Total expected future amortization expense $ 25,101 $ 52,476
Weighted Average Remaining Useful Life (in Years) 8 months 8 days 1 year 5 months 4 days
Intangible Assets, Net (Excluding Goodwill) [Abstract]    
Total accumulated amortization $ (35,699) $ (8,324)
Trade Relationships    
Finite-Lived Intangible Assets [Line Items]    
Intangible assets, gross carrying amount 3,400  
Accumulated Amortization (756)  
Total expected future amortization expense $ 2,644  
Weighted Average Remaining Useful Life (in Years) 2 years 4 months 2 days  
Intangible Assets, Net (Excluding Goodwill) [Abstract]    
Total accumulated amortization $ (756)  
In process research and development    
Finite-Lived Intangible Assets [Line Items]    
Intangible assets, gross carrying amount 2,100 3,000
Total expected future amortization expense $ 2,100 $ 3,000
In process research and development | Pro Forma    
Finite-Lived Intangible Assets [Line Items]    
Finite-lived intangible asset useful life 3 years 3 years
v3.22.2.2
GOODWILL, INTANGIBLE ASSETS, NET AND CRYPTO ASSETS HELD - Schedule of future amortization expense (Details)
$ in Thousands
Sep. 30, 2022
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]  
2022 (for the remainder of) $ 25,352
2023 67,591
2024 21,360
2025 13,119
2026 4,818
Thereafter 179
Total expected future amortization expense $ 132,419
v3.22.2.2
GOODWILL, INTANGIBLE ASSETS, NET AND CRYPTO ASSETS HELD - Crypto assets held (Details) - USD ($)
$ in Thousands
Sep. 30, 2022
Dec. 31, 2021
Recorded at impaired cost    
Indefinite-lived Intangible Assets [Line Items]    
Indefinite-lived intangible assets $ 413,101 $ 566,508
Recorded at fair value    
Indefinite-lived Intangible Assets [Line Items]    
Indefinite-lived intangible assets 209,972 421,685
Total crypto assets held    
Indefinite-lived Intangible Assets [Line Items]    
Indefinite-lived intangible assets 623,073 988,193
Crypto assets held as investments | Recorded at impaired cost    
Indefinite-lived Intangible Assets [Line Items]    
Indefinite-lived intangible assets 289,587 209,415
Crypto assets held as investments | Recorded at fair value    
Indefinite-lived Intangible Assets [Line Items]    
Indefinite-lived intangible assets 2,392 0
Crypto assets held for operations purposes | Recorded at impaired cost    
Indefinite-lived Intangible Assets [Line Items]    
Indefinite-lived intangible assets 123,514 357,093
Crypto assets borrowed | Recorded at fair value    
Indefinite-lived Intangible Assets [Line Items]    
Indefinite-lived intangible assets $ 207,580 $ 421,685
v3.22.2.2
CUSTOMER ASSETS AND LIABILITIES (Schedule of Customers' Cash and Crypto Positions) (Details) - USD ($)
$ in Thousands
Sep. 30, 2022
Jan. 01, 2022
Dec. 31, 2021
Sep. 30, 2021
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]        
Customer custodial cash $ 6,591,105   $ 10,526,233 $ 8,956,966
Customer crypto assets 95,113,124 [1] $ 267,600,000 0 [1]  
Total customer assets 101,704,229   10,526,233  
Customer custodial cash liabilities 6,357,657   10,480,612  
Customer crypto liabilities 95,113,124 [2] $ 267,600,000 0 [2]  
Total customer liabilities $ 101,470,781   $ 10,480,612  
[1] Safeguarding assets
[2] Safeguarding liabilities
v3.22.2.2
CUSTOMER ASSETS AND LIABILITIES (Narrative) (Details)
 9 Months Ended
Sep. 30, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Crypto assets to cash ratio 1
v3.22.2.2
CUSTOMER ASSETS AND LIABILITIES (Fair Value of Customer Crypto Assets) (Details) - USD ($)
$ in Thousands
Sep. 30, 2022
Jan. 01, 2022
Dec. 31, 2021
 [1]
Cryptocurrency, by Type [Line Items]      
Customer crypto assets $ 95,113,124 [1] $ 267,600,000 $ 0
Percentage of total 100.00%    
Bitcoin      
Cryptocurrency, by Type [Line Items]      
Customer crypto assets $ 39,900,000    
Percentage of total 42.00%    
Ethereum      
Cryptocurrency, by Type [Line Items]      
Customer crypto assets $ 24,100,000    
Percentage of total 25.30%    
Other crypto assets      
Cryptocurrency, by Type [Line Items]      
Customer crypto assets $ 31,100,000    
Percentage of total 32.70%    
[1] Safeguarding assets
v3.22.2.2
PREPAID EXPENSES AND OTHER ASSETS - Schedule of prepaid expenses and other current and non-current assets (Details) - USD ($)
$ in Thousands
Sep. 30, 2022
Dec. 31, 2021
Prepaid expenses and other current assets    
Prepaid expenses $ 91,366 $ 123,246
Deposits 2,524 9,658
Fair value adjustments related to foreign currency forward contracts 22,935 0
Cash collateral posted against foreign currency forward contracts 145,000 0
Other 15,219 2,945
Total prepaid expenses and other current assets 277,044 135,849
Other non-current assets    
Strategic investments 357,042 363,950
Deferred tax assets 1,014,736 573,547
Deposits 10,542 13,347
Other 41 1,463
Total other non-current assets $ 1,382,361 $ 952,307
v3.22.2.2
PREPAID EXPENSES AND OTHER ASSETS - Schedule of other investments accounted for under the measurement alternative (Details) - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Dec. 31, 2021
Equity Securities without Readily Determinable Fair Value [Roll Forward]      
Carrying amount, beginning of period $ 352,431 $ 26,146  
Net additions 57,058 242,196  
Upward adjustments 879 3,084  
Previously held interest in Bison Trails (see Note 4) 0 (2,000)  
Impairments and downward adjustments (70,631) (50)  
Carrying amount, end of period 339,737 $ 269,376  
Strategic investments that are not accounted for under the measurement alternative $ 17,300   $ 10,500
v3.22.2.2
PREPAID EXPENSES AND OTHER ASSETS - Narrative (Details) - USD ($)
$ in Millions
 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Dec. 31, 2021
Schedule of Equity Method Investments [Line Items]      
Upward adjustments due to remeasurement of investments $ 4.8   $ 4.6
Impairments and downward adjustments due to remeasurement of investments 71.5   $ 0.5
Affiliated Entity      
Schedule of Equity Method Investments [Line Items]      
Purchase of preferred shares $ 14.4 $ 150.0  
v3.22.2.2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Schedule of accounts payable and accrued expenses (Details) - USD ($)
$ in Thousands
Sep. 30, 2022
Dec. 31, 2021
Payables and Accruals [Abstract]    
Accrued expenses $ 120,769 $ 195,810
Accrued payroll and payroll related 104,543 146,313
Income taxes payable 8,495 4,553
Short-term borrowings 512 20,060
Other payables 63,782 72,823
Total accrued expenses and other current liabilities 298,101 439,559
Other payables denominated in crypto assets $ 13,100 $ 0
v3.22.2.2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Narrative (Details) - USD ($)
$ in Thousands
 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Dec. 31, 2021
Short-term Debt [Line Items]      
Debt instrument, stated percentage 4.25%   5.00%
Repayment of short-term borrowings $ 170,000 $ 0  
Secured Debt | Debt Secured By Bitcoin      
Short-term Debt [Line Items]      
Debt instrument, collateral, value, percentage of outstanding principal amount 200.00%    
v3.22.2.2
INDEBTEDNESS - Schedule of Long Term Debt (Details) - USD ($)
$ in Thousands
Sep. 30, 2022
Dec. 31, 2021
Debt Instrument [Line Items]    
Debt instrument, stated percentage 4.25% 5.00%
Principal Amount $ 3,437,500 $ 3,437,500
Unamortized Debt Discount and Issuance Costs (46,263) (52,705)
Net Carrying Amount $ 3,391,237 $ 3,384,795
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 $ 1,437,500 $ 1,437,500
Unamortized Debt Discount and Issuance Costs (24,903) (29,436)
Net Carrying Amount $ 1,412,597 $ 1,408,064
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 (10,413) (11,565)
Net Carrying Amount $ 989,587 $ 988,435
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 $ 1,000,000 $ 1,000,000
Unamortized Debt Discount and Issuance Costs (10,947) (11,704)
Net Carrying Amount $ 989,053 $ 988,296
v3.22.2.2
INDEBTEDNESS - Narrative (Details) - USD ($)
$ in Millions
Sep. 30, 2021
May 31, 2021
Convertible Senior Notes due 2026 | Convertible notes    
Debt Instrument [Line Items]    
Face amount of debt   $ 1,440.0
2028 Senior Notes | Senior Notes    
Debt Instrument [Line Items]    
Face amount of debt $ 1,000.0  
2031 Senior Notes | Senior Notes    
Debt Instrument [Line Items]    
Face amount of debt $ 1,000.0  
v3.22.2.2
INDEBTEDNESS - Schedule of Interest Expense (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Debt Disclosure [Abstract]        
Coupon interest $ 19,296 $ 5,300 $ 57,937 $ 5,300
Amortization of debt discount and issuance costs 2,204 1,672 6,442 2,420
Total $ 21,500 $ 6,972 $ 64,379 $ 7,720
v3.22.2.2
DERIVATIVES - Schedule of notional amount of derivative contracts outstanding (Details) - USD ($)
$ in Thousands
Sep. 30, 2022
Dec. 31, 2021
Crypto asset borrowings with embedded derivatives | Designated as fair value hedging instruments    
Not designated as hedging instruments    
Notional amount of derivative contracts outstanding in native units $ 210,075 $ 669,445
Crypto asset futures | Designated as fair value hedging instruments    
Not designated as hedging instruments    
Notional amount of derivative contracts outstanding in native units 771 0
Crypto asset futures | Not designated as hedging instruments    
Not designated as hedging instruments    
Notional amount of derivative contracts outstanding in native units 994 0
Accounts receivable denominated in crypto assets | Not designated as hedging instruments    
Not designated as hedging instruments    
Notional amount of derivative contracts outstanding in native units 16,748 17,415
Other payables denominated in crypto assets | Not designated as hedging instruments    
Not designated as hedging instruments    
Notional amount of derivative contracts outstanding in native units 13,627 0
Foreign currency forward contracts | Not designated as hedging instruments    
Not designated as hedging instruments    
Notional amount of derivative contracts outstanding in native units $ 1,100,000 $ 0
v3.22.2.2
DERIVATIVES - Schedule of derivative assets and liabilities (Details) - USD ($)
$ in Thousands
Sep. 30, 2022
Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets $ 30,776 $ 345,429
Gross Derivative Liabilities 12,679 93,616
Crypto asset borrowings with embedded derivatives    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets 3,580 336,396
Gross Derivative Liabilities 3,183 93,616
Accounts receivable denominated in crypto assets    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets 0 9,033
Gross Derivative Liabilities 5,791 0
Other payables denominated in crypto assets    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets 4,261  
Gross Derivative Liabilities 3,705  
Foreign currency forward contracts    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets 22,935  
Gross Derivative Liabilities 0  
Not designated as hedging instruments    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets 27,196 9,033
Gross Derivative Liabilities 9,496 0
Not designated as hedging instruments | Crypto asset borrowings with embedded derivatives    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets 0 0
Gross Derivative Liabilities 0 0
Not designated as hedging instruments | Accounts receivable denominated in crypto assets    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets 0 9,033
Gross Derivative Liabilities 5,791 0
Not designated as hedging instruments | Other payables denominated in crypto assets    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets 4,261  
Gross Derivative Liabilities 3,705  
Not designated as hedging instruments | Foreign currency forward contracts    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets 22,935  
Gross Derivative Liabilities 0  
Designated as fair value hedging instruments    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets 3,580 336,396
Gross Derivative Liabilities 3,183 93,616
Designated as fair value hedging instruments | Crypto asset borrowings with embedded derivatives    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets 3,580 336,396
Gross Derivative Liabilities 3,183 93,616
Designated as fair value hedging instruments | Accounts receivable denominated in crypto assets    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets 0 0
Gross Derivative Liabilities 0 $ 0
Designated as fair value hedging instruments | Other payables denominated in crypto assets    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets 0  
Gross Derivative Liabilities 0  
Designated as fair value hedging instruments | Foreign currency forward contracts    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets 0  
Gross Derivative Liabilities $ 0  
v3.22.2.2
DERIVATIVES - Description of Derivatives and Related Hedge Accounting Designation (Details) - USD ($)
$ in Millions
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Not designated as hedging instruments        
Borrowing fees paid in crypto assets $ 0.9 $ 2.3 $ 3.9 $ 9.5
Minimum        
Not designated as hedging instruments        
Borrowing rate on derivatives 0.00% 0.00% 0.00% 0.00%
Maximum        
Not designated as hedging instruments        
Borrowing rate on derivatives 7.50% 3.00% 7.50% 3.00%
v3.22.2.2
DERIVATIVES - Schedule of collateral posted and received (Details) - USD ($)
$ in Thousands
Sep. 30, 2022
Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]    
Cash collateral posted $ 145,000 $ 0
v3.22.2.2
DERIVATIVES - Narrative (Details) - USD ($)
$ in Thousands
Sep. 30, 2022
Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]    
Fair value adjustments related to foreign currency forward contracts $ 22,935 $ 0
v3.22.2.2
DERIVATIVES - Schedule of gains (losses) recorded in income (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Not designated as hedging instruments        
Not designated as hedging instruments        
Derivatives $ (195,096) $ (75,999) $ 176,347 $ 105,558
Hedged Items 207,035 75,143 (166,567) (93,973)
Income Statement Impact 11,939 (856) 9,780 11,585
Crypto asset borrowings with embedded derivatives | Designated as fair value hedging instruments        
Not designated as hedging instruments        
Derivatives (211,110) (75,999) 148,959 105,558
Hedged Items 207,112 75,143 (154,228) (93,973)
Income Statement Impact (3,998) (856) (5,269) 11,585
Crypto asset borrowings with embedded derivatives | Not designated as hedging instruments        
Not designated as hedging instruments        
Derivatives     6,626 0
Hedged Items     0 0
Income Statement Impact     6,626 0
Crypto asset futures | Designated as fair value hedging instruments        
Not designated as hedging instruments        
Derivatives 225 0 13,237 0
Hedged Items (77) 0 (12,339) 0
Income Statement Impact 148 0 898 0
Crypto asset futures | Not designated as hedging instruments        
Not designated as hedging instruments        
Derivatives (566) 0 (1,077) 0
Hedged Items 0 0 0 0
Income Statement Impact (566) 0 (1,077) 0
Accounts receivable denominated in crypto assets | Not designated as hedging instruments        
Not designated as hedging instruments        
Derivatives (4,213) 0 (14,476) 0
Hedged Items 0 0 0 0
Income Statement Impact (4,213) 0 (14,476) 0
Other payables denominated in crypto assets | Not designated as hedging instruments        
Not designated as hedging instruments        
Derivatives (2,367) 0 143 0
Hedged Items 0 0 0 0
Income Statement Impact (2,367) 0 143 0
Foreign currency forward contracts | Not designated as hedging instruments        
Not designated as hedging instruments        
Derivatives 22,935 0 22,935 0
Hedged Items 0 0 0 0
Income Statement Impact $ 22,935 $ 0 $ 22,935 $ 0
v3.22.2.2
DERIVATIVES - Schedule of cumulative fair value hedge basis adjustments (Details) - USD ($)
$ in Thousands
Sep. 30, 2022
Dec. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]    
Carrying amount of the hedged items, Crypto assets held $ 209,972 $ 421,685
Cumulative amount of fair value hedging adjustments included in the carrying amount of hedged items, active hedging relationships, Crypto assets held (1,025) (240,771)
Cumulative amount of fair value hedging adjustments included in the carrying amount of hedged items, discontinued hedging relationships, Crypto assets held 448 0
Cumulative amount of fair value hedging adjustments included in the carrying amount of hedged items, total, Crypto assets held $ (577) $ (240,771)
v3.22.2.2
FAIR VALUE MEASUREMENTS (Details) - USD ($)
$ in Thousands
Sep. 30, 2022
Jan. 01, 2022
Dec. 31, 2021
Sep. 30, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Cash and cash equivalents $ 5,006,584   $ 7,123,478 $ 6,352,775
Derivative assets 30,776   345,429  
Customer crypto assets 95,113,124 [1] $ 267,600,000 0 [1]  
Derivative liabilities 12,679   93,616  
Customer crypto liabilities 95,113,124 [2] $ 267,600,000 0 [2]  
Customer custodial funds excluded from fair value assets 5,400,000   7,000,000  
Crypto assets held at cost excluded from fair value assets 413,100   566,500  
Held in Deposit at Financial Institutions        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Cash and cash equivalents 2,600,000   2,100,000  
Held in Deposit at Venues        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Cash and cash equivalents 167,800   168,900  
Fair Value, Recurring        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Cash and cash equivalents 2,282,077   4,813,621  
Customer custodial cash 1,226,646   3,566,072  
Crypto assets held 209,972   421,685  
Derivative assets 30,776   345,429  
Customer crypto assets 95,113,124      
Total assets 98,862,595   9,146,807  
Derivative liabilities 12,679   93,616  
Contingent consideration arrangement 4,213   14,828  
Customer crypto liabilities 95,113,124      
Total liabilities 95,130,016   108,444  
Level 1 | Fair Value, Recurring        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Cash and cash equivalents 2,282,077   4,813,621  
Customer custodial cash 1,226,646   3,566,072  
Crypto assets held 209,972   0  
Derivative assets 0   0  
Customer crypto assets 0      
Total assets 3,718,695   8,379,693  
Derivative liabilities 0   0  
Contingent consideration arrangement 0   0  
Customer crypto liabilities 0      
Total liabilities 0   0  
Level 2 | Fair Value, Recurring        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Cash and cash equivalents 0   0  
Customer custodial cash 0   0  
Crypto assets held 0   421,685  
Derivative assets 30,776   345,429  
Customer crypto assets 95,113,124      
Total assets 95,143,900   767,114  
Derivative liabilities 12,679   93,616  
Contingent consideration arrangement 0   0  
Customer crypto liabilities 95,113,124      
Total liabilities 95,125,803   93,616  
Level 3 | Fair Value, Recurring        
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]        
Cash and cash equivalents 0   0  
Customer custodial cash 0   0  
Crypto assets held 0   0  
Derivative assets 0   0  
Customer crypto assets 0      
Total assets 0   0  
Derivative liabilities 0   0  
Contingent consideration arrangement 4,213   14,828  
Customer crypto liabilities 0      
Total liabilities $ 4,213   $ 14,828  
[1] Safeguarding assets
[2] Safeguarding liabilities
v3.22.2.2
FAIR VALUE MEASUREMENTS - Narrative (Details) - Level 2
$ in Millions
Sep. 30, 2022
USD ($)
Convertible notes | Convertible Senior Notes due 2026  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Fair value of notes $ 951.5
Senior Notes | 2028 and 2031 Senior Notes  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Fair value of notes $ 1,170.0
v3.22.2.2
COMMON STOCK - Narrative (Details)
Apr. 01, 2021
vote
shares
Sep. 30, 2022
shares
Dec. 31, 2021
shares
Class A common stock      
Class of Stock [Line Items]      
Common stock, authorized (in shares) 10,000,000,000 10,000,000,000 10,000,000,000
Common stock, voting rights per share | vote 1    
Class B common stock      
Class of Stock [Line Items]      
Common stock, authorized (in shares) 500,000,000 500,000,000 500,000,000
Common stock, voting rights per share | vote 20    
Common stock, conversion ratio 1    
Undesignated common stock      
Class of Stock [Line Items]      
Common stock, authorized (in shares) 500,000,000    
Undesignated preferred stock      
Class of Stock [Line Items]      
Common stock, authorized (in shares) 500,000,000    
v3.22.2.2
COMMON STOCK - Schedule of shares reserved for future issuance (Details) - shares
shares in Thousands
Sep. 30, 2022
Dec. 31, 2021
Class A common stock    
Class of Stock [Line Items]    
Common stock reserved for future issuance (in shares) 88,361 81,866
Options issued and outstanding under the 2013 Amended and Restated Stock Plan (the “2013 Plan”)    
Class of Stock [Line Items]    
Common stock reserved for future issuance (in shares) 1,036 1,569
Options issued and outstanding under the 2019 Equity Incentive Plan (the “2019 Plan”)    
Class of Stock [Line Items]    
Common stock reserved for future issuance (in shares) 26,365 29,311
RSUs issued and outstanding under the 2019 Plan    
Class of Stock [Line Items]    
Common stock reserved for future issuance (in shares) 3,004 5,851
Options issued and outstanding under the 2021 Equity Incentive Plan (the “2021 Plan”)    
Class of Stock [Line Items]    
Common stock reserved for future issuance (in shares) 922 0
RSUs issued and outstanding under the 2021 Plan    
Class of Stock [Line Items]    
Common stock reserved for future issuance (in shares) 3,690 1,402
Shares available for future issuance under the 2021 Plan    
Class of Stock [Line Items]    
Common stock reserved for future issuance (in shares) 43,794 35,856
Shares available for future issuance under the 2021 ESPP    
Class of Stock [Line Items]    
Common stock reserved for future issuance (in shares) 6,941 5,125
Replacement options issued and outstanding from the Tagomi acquisition    
Class of Stock [Line Items]    
Common stock reserved for future issuance (in shares) 1 4
Replacement options issued and outstanding from the Bison Trails acquisition    
Class of Stock [Line Items]    
Common stock reserved for future issuance (in shares) 152 223
RSUs issued and outstanding from other acquisitions    
Class of Stock [Line Items]    
Common stock reserved for future issuance (in shares) 160 229
Shares available for future issuance of warrants    
Class of Stock [Line Items]    
Common stock reserved for future issuance (in shares) 2,296 2,296
Class B common stock    
Class of Stock [Line Items]    
Common stock reserved for future issuance (in shares) 4,935 6,101
Options issued and outstanding under the 2013 Plan    
Class of Stock [Line Items]    
Common stock reserved for future issuance (in shares) 4,935 6,101
v3.22.2.2
STOCK-BASED COMPENSATION - Schedule of stock option activity (Details)
$ / shares in Units, shares in Thousands, $ in Thousands
 9 Months Ended 12 Months Ended
Sep. 30, 2022
USD ($)
$ / shares
shares
Dec. 31, 2021
USD ($)
$ / shares
shares
Options Outstanding    
Beginning balance (in shares) | shares 37,208  
Issued (in shares) | shares 937  
Exercised (in shares) | shares (3,012)  
Forfeited and cancelled (in shares) | shares (1,722)  
Ending balance (in shares) | shares 33,411 37,208
Weighted Average Exercise Price per Share    
Options outstanding, weighted average exercise price per share - Beginning balance (in dollars per share) | $ / shares $ 18.60  
Options issued, weighted average exercise price per share (in dollars per share) | $ / shares 177.79  
Options exercised, weighted average exercise price per share (in dollars per share) | $ / shares 13.59  
Options forfeited and cancelled, weighted average exercise price per share (in dollars per share) | $ / shares 22.79  
Options outstanding, weighted average exercise price per share - Ending balance (in dollars per share) | $ / shares $ 23.30 $ 18.60
Stock Option Activity, Additional Disclosures    
Options outstanding, Weighted average remaining contractual term 7 years 2 months 8 days 7 years 9 months 29 days
Options outstanding, Aggregate intrinsic value | $ $ 1,481,640 $ 8,698,078
Options vested and exercisable, Number of options (in shares) | shares 18,506  
Options vested and exercisable , Weighted average exercise price per share (in dollars per share) | $ / shares $ 18.19  
Options vested and exercisable, Weighted average remaining contractual term 6 years 8 months 12 days  
Options vested and exercisable, Aggregate intrinsic value | $ $ 882,457  
Options vested and expected to vest, Number of options (in shares) | shares 27,277  
Options vested and expected to vest, Weighted average exercise price per share (in dollars per share) | $ / shares $ 23.26  
Options vested and expected to vest, Weighted average remaining contractual term 7 years 14 days  
Options vested and expected to vest, Aggregate intrinsic value | $ $ 1,229,963  
v3.22.2.2
STOCK-BASED COMPENSATION - Narrative (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Issued (in shares)     937,000  
Options issued, weighted average exercise price per share (in dollars per share)     $ 177.79  
Total unrecognized compensation cost related to unvested stock options $ 159,700   $ 159,700  
Stock based compensation expense 391,441 $ 264,194 1,135,078 $ 558,157
Share based payment arrangement, capitalized $ 26,300 700 $ 97,700 1,500
Class A common stock        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Issued (in shares) 143,751   937,247  
Options issued, weighted average exercise price per share (in dollars per share) $ 42.69   $ 83.25  
Stock options        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Stock based compensation vesting period     3 years  
Vesting rights, percentage     8.33%  
Unrecognized compensation cost, weighted-average period of recognition     2 years 4 months 24 days  
Number of shares subject to repurchase (in shares) 213,757   213,757  
Value of shares related to repurchase $ 4,300   $ 4,300  
Share-based Payment Arrangement | Chief Executive Officer        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Stock based compensation expense 1,000 $ 22,200 $ 2,900 $ 28,500
RSUs        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Unrecognized compensation cost, weighted-average period of recognition     1 year 10 months 24 days  
Total unrecognized compensation cost 841,300   $ 841,300  
RSUs | Minimum        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Stock based compensation vesting period     1 year  
RSUs | Maximum        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Stock based compensation vesting period     4 years  
Restricted common stock        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Stock based compensation vesting period     3 years  
Unrecognized compensation cost, weighted-average period of recognition     1 year 7 months 6 days  
Total unrecognized compensation cost 163,100   $ 163,100  
ESPP        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Stock plan offering period     24 months  
Accumulated payroll deductions $ 8,600   $ 8,600  
ESPP | Class A common stock        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Discount on purchase price of common stock     15.00%  
v3.22.2.2
STOCK-BASED COMPENSATION - Valuation Assumptions (Details) - Stock options
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2022
Sep. 30, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Dividend yield 0.00% 0.00% 0.00%
Expected volatility 76.10% 59.30% 44.00%
Expected term (in years) 5 years 9 months 18 days 5 years 9 months 18 days 4 years 9 months 18 days
Risk-free interest rate 3.00% 2.10% 0.50%
v3.22.2.2
STOCK-BASED COMPENSATION - Schedule of restricted stock unit and restricted stock activity (Details)
shares in Thousands
 9 Months Ended
Sep. 30, 2022
$ / shares
shares
RSUs  
Number of Shares  
Beginning balance (in shares) | shares 7,482
Granted (in shares) | shares 7,860
Vested (in shares) | shares (6,906)
Forfeited and cancelled (in shares) | shares (1,582)
Ending balance (in shares) | shares 6,854
Weighted-Average Grant Date Fair Value per Share  
Beginning balance, weighted-average grant date fair value per share (in dollars per share) | $ / shares $ 157.22
Granted, Weighted-average grant date fair value per share (in dollars per share) | $ / shares 144.69
Vested, Weighted-average grant date fair value per share (in dollars per share) | $ / shares 153.57
Forfeited and cancelled, Weighted-average grant date fair value per share (in dollars per share) | $ / shares 164.86
Ending balance, weighted-average grant date fair value per share (in dollars per share) | $ / shares $ 144.64
Restricted common stock  
Number of Shares  
Beginning balance (in shares) | shares 2,014
Granted (in shares) | shares 323
Vested (in shares) | shares (925)
Forfeited and cancelled (in shares) | shares 0
Ending balance (in shares) | shares 1,412
Weighted-Average Grant Date Fair Value per Share  
Beginning balance, weighted-average grant date fair value per share (in dollars per share) | $ / shares $ 137.57
Granted, Weighted-average grant date fair value per share (in dollars per share) | $ / shares 137.05
Vested, Weighted-average grant date fair value per share (in dollars per share) | $ / shares 129.72
Forfeited and cancelled, Weighted-average grant date fair value per share (in dollars per share) | $ / shares 0
Ending balance, weighted-average grant date fair value per share (in dollars per share) | $ / shares $ 143.33
v3.22.2.2
STOCK-BASED COMPENSATION - Schedule of stock based compensation (Details) - USD ($)
$ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Stock based compensation expense $ 391,441 $ 264,194 $ 1,135,078 $ 558,157
Technology and development        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Stock based compensation expense 275,817 176,785 793,573 381,030
Sales and marketing        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Stock based compensation expense 18,461 10,095 52,813 20,299
General and administrative        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Stock based compensation expense $ 97,163 $ 77,314 $ 288,692 $ 156,828
v3.22.2.2
INCOME TAXES (Details)
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Income Tax Disclosure [Abstract]        
Effective income tax rate 15.40% (49.90%) 17.10% (30.30%)
v3.22.2.2
NET (LOSS) INCOME PER SHARE - Schedule of net income per share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Numerator        
Net (loss) income $ (544,635) $ 406,100 $ (2,067,948) $ 2,783,912
Less: Income allocated to participating securities 0 (3,757) 0 (542,122)
Net (loss) income attributable to common stockholders, basic $ (544,635) $ 402,343 $ (2,067,948) $ 2,241,790
Denominator        
Weighted-average shares of common stock used to compute net (loss) income per share attributable to common stockholders, basic (in shares) 223,916 209,604 220,816 165,045
Net (loss) income per share attributable to common stockholders, basic (in dollars per share) $ (2.43) $ 1.92 $ (9.37) $ 13.58
Numerator        
Net (loss) income $ (544,635) $ 406,100 $ (2,067,948) $ 2,783,912
Less: Income allocated to participating securities 0 (3,167) 0 (448,463)
Add: Interest on convertible notes, net of tax 0 3,087 0 3,638
Less: Fair value gain on contingent consideration arrangement, net of tax 0 (680) (5,395) (680)
Net (loss) income attributable to common stockholders, diluted $ (544,635) $ 405,340 $ (2,073,343) $ 2,338,407
Denominator        
Weighted-average shares of common stock used to compute net (loss) income per share attributable to common stockholders, basic (in shares) 223,916 209,604 220,816 165,045
Weighted-average effect of potentially dilutive securities:        
Warrants (in shares) 0 0 0 97
Convertible notes (in shares) 0 3,880 0 1,883
Contingent consideration (in shares) 0 1 40 1
Weighted-average shares of common stock used to compute net (loss) income per share attributable to common stockholders, diluted (in shares) 223,916 250,536 220,856 209,052
Net (loss) income per share attributable to common stockholders, diluted (in dollars per share) $ (2.43) $ 1.62 $ (9.39) $ 11.19
Stock options        
Weighted-average effect of potentially dilutive securities:        
Share-based compensation plan (in shares) 0 33,122 0 38,419
RSUs        
Weighted-average effect of potentially dilutive securities:        
Share-based compensation plan (in shares) 0 3,924 0 3,604
Restricted common stock        
Weighted-average effect of potentially dilutive securities:        
Share-based compensation plan (in shares) 0 5 0 3
v3.22.2.2
NET (LOSS) INCOME PER SHARE - Schedule of potentially dilutive shares (Details) - shares
shares in Thousands
 3 Months Ended 9 Months Ended
Sep. 30, 2022
Sep. 30, 2021
Sep. 30, 2022
Sep. 30, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Number of shares excluded in the computation of diluted earnings per share 46,991 6,590 46,915 6,590
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 33,411 6,134 33,411 6,134
RSUs        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Number of shares excluded in the computation of diluted earnings per share 6,854 107 6,854 107
Convertible notes        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Number of shares excluded in the computation of diluted earnings per share 3,880 0 3,880 0
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 1,740 65 1,740 65
ESPP        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Number of shares excluded in the computation of diluted earnings per share 1,030 284 1,030 284
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 76 0 0 0
v3.22.2.2
COMMITMENTS AND CONTINGENCIES (Details)
 2 Months Ended
Aug. 31, 2021
class_action_case
Commitments and Contingencies Disclosure [Abstract]  
Number of purported securities class actions filed 3