COINBASE GLOBAL, INC., 10-Q filed on 5/14/2021
Quarterly Report
v3.21.1
Cover Page - shares
 3 Months Ended
Mar. 31, 2021
Apr. 30, 2021
Entity Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Mar. 31, 2021  
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, $0.00001 par value per share  
Trading Symbol COIN  
Security Exchange Name NASDAQ  
Entity Current Reporting Status No  
Entity Interactive Data Current Yes  
Entity Filer Category Non-accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Central Index Key 0001679788  
Amendment Flag false  
Document Fiscal Year Focus 2021  
Document Fiscal Period Focus Q1  
Current Fiscal Year End Date --12-31  
Class A common stock    
Entity Information [Line Items]    
Entity Common Stock, Shares Outstanding   141,790,421
Class B common stock    
Entity Information [Line Items]    
Entity Common Stock, Shares Outstanding   66,871,716
v3.21.1
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Current assets:    
Cash and cash equivalents $ 1,983,318 $ 1,061,850
Restricted cash 30,841 30,787
Customer custodial funds 6,291,776 3,763,392
USDC 102,118 48,938
Accounts and loans receivable, net of allowance 208,828 189,471
Prepaid expenses and other current assets 55,662 39,510
Total current assets 8,672,543 5,133,948
Crypto assets held 651,356 316,094
Lease right-of-use assets 110,791 100,845
Property and equipment, net 50,331 49,250
Goodwill 481,379 77,212
Intangible assets, net 93,032 60,825
Other non-current assets 141,680 117,240
Total assets 10,201,112 5,855,414
Current liabilities:    
Custodial funds due to customers 6,223,846 3,849,468
Accounts payable and accrued expenses 373,955 85,111
Crypto asset borrowings 543,820 271,303
Lease liabilities, current 29,695 25,270
Other current liabilities 84,832 15,703
Total current liabilities 7,256,148 4,246,855
Lease liabilities, non-current 88,519 82,508
Total liabilities 7,344,667 4,329,363
Commitments and contingencies (Note 16)
Convertible preferred stock, $0.00001 par value; 126,605 shares authorized; 112,407 and 112,878 shares issued and outstanding at March 31, 2021 and December 31, 2020, respectively; aggregate liquidation preference of $568,320 and $578,750 at March 31, 2021 and December 31, 2020, respectively 552,037 562,467
Stockholders’ equity    
Additional paid-in capital 804,523 231,024
Accumulated other comprehensive income 2,118 6,256
Retained earnings 1,497,767 726,304
Total stockholders’ equity 2,304,408 963,584
Total liabilities, convertible preferred stock, and stockholders’ equity 10,201,112 5,855,414
Class A common stock    
Stockholders’ equity    
Common stock 0 0
Class B common stock    
Stockholders’ equity    
Common stock $ 0 $ 0
v3.21.1
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Temporary equity, par value (in dollars per share) $ 0.00001 $ 0.00001
Shares Authorized (in shares) 126,605,000 126,605,000
Shares Issued (in shares) 112,407,000 112,878,000
Shares Outstanding (in shares) 112,407,000 112,878,000
Liquidation Preference $ 568,320 $ 578,750
Common stock, par value (in dollars per share) $ 0.00001  
Common stock, authorized (in shares) 490,413,936  
Class A common stock    
Common stock, par value (in dollars per share) $ 0.00001 $ 0.00001
Common stock, authorized (in shares) 282,000,000 267,640,000
Common stock, issued (in shares) 19,385,000 12,204,000
Common stock, outstanding (in shares) 19,385,000 12,204,000
Class B common stock    
Common stock, par value (in dollars per share) $ 0.00001 $ 0.00001
Common stock, authorized (in shares) 208,413,936 208,414,000
Common stock, issued (in shares) 66,281,000 60,904,000
Common stock, outstanding (in shares) 66,281,000 60,904,000
v3.21.1
Condensed Consolidated Statements of Operations - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Revenue:    
Revenue $ 1,801,112 $ 190,630
Operating expenses:    
Transaction expense 234,066 25,407
Technology and development 184,225 47,138
Sales and marketing 117,990 9,921
General and administrative 121,231 58,958
Other operating expense 155,887 10,431
Total operating expenses 813,399 151,855
Operating income 987,713 38,775
Other (income) expense, net (8,953) 3,866
Income before provision for income taxes 996,666 34,909
Provision for income taxes 225,203 2,936
Net income 771,463 31,973
Net income attributable to common stockholders:    
Basic 301,896 0
Diluted $ 387,719 $ 0
Net income per share attributable to common stockholders:    
Basic (in dollars per share) $ 3.80 $ 0
Diluted (in dollars per share) $ 3.05 $ 0
Weighted-average shares of common stock used to compute net income per share attributable to common stockholders:    
Basic (in shares) 79,373,000 66,957,000
Diluted (in shares) 126,996,000 66,957,000
Transaction and Subscription and services revenue    
Revenue:    
Revenue $ 1,596,981 $ 179,082
Other Crypto Sales    
Revenue:    
Revenue $ 204,131 $ 11,548
v3.21.1
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Statement of Comprehensive Income [Abstract]    
Net income $ 771,463 $ 31,973
Other comprehensive loss    
Translation adjustment, net of tax (4,138) (811)
Comprehensive income $ 767,325 $ 31,162
v3.21.1
Condensed Consolidated Statements of Changes in Convertible Preferred Stock and Stockholders' Equity - USD ($)
$ in Thousands
Total
Convertible Preferred Stock
Common Stock
Additional Paid-In Capital
Accumulated Other Comprehensive Income (Loss)
Retained Earnings
Beginning balance (in shares) at Dec. 31, 2019   114,959,000        
Beginning balance at Dec. 31, 2019   $ 564,697        
Ending balance (in shares) at Mar. 31, 2020   114,959,000        
Ending balance at Mar. 31, 2020   $ 564,697        
Beginning balance (in shares) at Dec. 31, 2019     66,994,000      
Beginning balance at Dec. 31, 2019 $ 497,086     $ 93,820 $ (721) $ 403,987
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Issuance of common stock upon exercise of stock options, net of repurchases (in shares)     58,000      
Issuance of common stock upon exercise of stock options, net of repurchases 485     485    
Stock-based compensation expense 9,180     9,180    
Comprehensive loss (811)       (811)  
Net income 31,973         31,973
Ending balance (in shares) at Mar. 31, 2020     67,052,000      
Ending balance at Mar. 31, 2020 $ 537,913     103,485 (1,532) 435,960
Beginning balance (in shares) at Dec. 31, 2020 112,878,000 112,878,000        
Beginning balance at Dec. 31, 2020 $ 562,467 $ 562,467        
Increase (Decrease) in Temporary Equity [Roll Forward]            
Conversion of preferred stock (in shares)   (471,000) 471,000      
Conversion of preferred stock $ 10,430 $ (10,430)   10,430    
Ending balance (in shares) at Mar. 31, 2021 112,407,000 112,407,000        
Ending balance at Mar. 31, 2021 $ 552,037 $ 552,037        
Beginning balance (in shares) at Dec. 31, 2020     73,108,000      
Beginning balance at Dec. 31, 2020 $ 963,584     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) 7,918,000   7,910,000      
Issuance of common stock upon exercise of stock options, net of repurchases $ 39,580     39,580    
Stock-based compensation expense 105,376     105,376    
Issuance of equity instruments as consideration in business combination (in shares)     3,584,000      
Issuance of equity instruments as consideration in business combination 417,680     417,680    
Conversion of preferred stock (in shares)   (471,000) 471,000      
Conversion of preferred stock 10,430 $ (10,430)   10,430    
Issuance of shares from exercise of warrants (in shares)     412,000      
Issuance of shares from exercise of warrants 433     433    
Issuance of common stock upon settlement of restricted stock units (RSUs) (in shares)     181,000      
Comprehensive loss (4,138)       (4,138)  
Net income 771,463         771,463
Ending balance (in shares) at Mar. 31, 2021     85,666,000      
Ending balance at Mar. 31, 2021 $ 2,304,408     $ 804,523 $ 2,118 $ 1,497,767
v3.21.1
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Cash flows from operating activities    
Net income $ 771,463 $ 31,973
Adjustments to reconcile net income to net cash provided by operating activities    
Depreciation and amortization 10,922 6,894
Impairment expense 841 268
Stock-based compensation expense 104,628 8,772
Provision for transaction losses and doubtful accounts 2,503 254
Loss on disposal of property and equipment 11 0
Deferred income taxes 36 7,637
Unrealized (gain) loss on foreign exchange (2,869) 4,409
Non-cash lease expense 9,050 5,818
Gain on investments (9,257) 0
Change in fair value of contingent consideration 0 (401)
Realized (gain) loss on crypto assets (32,769) 303
Crypto assets received as revenue (180,109) (10,711)
Crypto asset payments for expenses 154,989 2,781
Fair value adjustment on derivatives (2,800) 0
Changes in operating assets and liabilities:    
USDC (64,064) 38,874
Accounts and loans receivable (11,976) (12,783)
Income taxes, net 238,486 (12,726)
Other assets (34,587) 10,779
Custodial funds due to customers 2,355,138 386,668
Accounts payable and accrued expenses 45,180 6,952
Lease liabilities (8,568) (5,670)
Other liabilities 65,517 208
Net cash provided by operating activities 3,411,765 470,299
Cash flows from investing activities    
Purchase of property and equipment (18) (2,393)
Proceeds from sale of property and equipment 48 0
Capitalized internal-use software development costs (4,388) (1,926)
Business combination, net of cash acquired (16,525) 0
Purchase of investments (9,203) (2,248)
Purchase of crypto assets (553,012) (60,160)
Disposal of crypto assets 545,188 61,187
Net cash used in investing activities (37,910) (5,540)
Cash flows from financing activities    
Issuance of common stock upon exercise of stock options, net of repurchases 59,387 432
Issuance of shares from exercise of warrants 433 0
Net cash provided by financing activities 59,820 432
Net increase in cash, cash equivalents, and restricted cash 3,433,675 465,191
Effect of exchange rates on cash 16,231 (10,875)
Cash, cash equivalents, and restricted cash, beginning of period 4,856,029 1,784,417
Cash, cash equivalents, and restricted cash, end of period 8,305,935 2,238,733
Cash, cash equivalents, and restricted cash consisted of the following:    
Total cash, cash equivalents, and restricted cash 8,305,935 2,238,733
Supplemental disclosure of cash flow information    
Cash paid during the period for income taxes 0 550
Operating cash outflows for amounts included in the measurement of operating lease liabilities 7,490 7,123
Supplemental schedule of non-cash investing and financing activities    
Unsettled purchases of property and equipment 0 7,607
Right-of-use assets obtained in exchange for operating lease obligations 13,072 2,146
Purchase of crypto assets and investments with non-cash consideration 885 851
Crypto assets borrowed 9,158 0
Crypto assets borrowed repaid $ 16,437 $ 0
v3.21.1
NATURE OF OPERATIONS
 3 Months Ended
Mar. 31, 2021
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.
In May 2020, the Company became a remote-first company. Accordingly, the Company does not maintain a headquarters.
v3.21.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 3 Months Ended
Mar. 31, 2021
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 for the three months ended March 31, 2021 and March 31, 2020 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 results of operations and statements of cash flows for the three months ended March 31, 2021 and March 31, 2020. The unaudited condensed consolidated results of operations and cash flows for the three months ended March 31, 2021 and March 31, 2020 are not necessarily indicative of the results to be expected for the full year or any other period.
These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s final prospectus filed with the Securities and Exchange Commission pursuant to Rule 424(b) under the Securities Act of 1933, as amended, on April 14, 2021 (the “Prospectus”).
These accompanying unaudited 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.
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 Prospectus, other than as discussed below.
Use of estimates
The preparation of the consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions in the Company’s 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 intangible assets; the useful lives of property and equipment; the Company’s incremental borrowing rate; the fair value of assets acquired and liabilities assumed in business combinations; the fair value of derivatives and related hedges; 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 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.
Business combinations
The results of businesses acquired in a business combination are included in the Company’s consolidated financial statements from the date of the acquisition. Purchase accounting results in assets and liabilities of an acquired business being recorded at their estimated fair values on the acquisition date. Any excess consideration over the fair value of assets acquired and liabilities assumed is recognized as goodwill. Acquisition-related costs incurred by the Company are recognized as an expense in general and administrative expenses within the consolidated statements of operations.
The Company uses its best estimates and assumptions to assign fair value to the tangible and intangible assets acquired and liabilities assumed at the acquisition date. The Company’s estimates are inherently uncertain and subject to refinement.
During the measurement period, which may be up to one year from the acquisition date, and to the extent that the value was not previously finalized, the Company may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed, with the corresponding offset to goodwill. In addition, uncertain tax positions and tax-related valuation allowances are initially recorded in connection with a business combination as of the acquisition date. The Company continues to collect information about facts and circumstance that existed at the date of acquisition and reevaluates these estimates and assumptions quarterly and records any adjustments to the Company’s preliminary estimates to goodwill, provided that the Company is within the measurement period. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s consolidated statements of operations.
Accounts and loans receivable and allowance for doubtful accounts
Accounts and loans receivables are contractual rights to receive cash either on demand or on fixed or determinable dates, and are recognized as an asset on the Company’s balance sheet. Accounts and loans receivable consists of customer funds receivable, in-transit funds receivable, custodial fee revenue receivable, loans receivable, interest receivable, and other receivables.
Customer funds receivable, including in-transit funds receivable, represent settlements due for crypto assets delivered to customers and from third-party payment processors and banks for settled customer transactions. Customer funds receivable are typically received within one or two business days of the transaction date. The Company establishes withdrawal-based limits in order to mitigate potential losses by preventing customers from withdrawing the crypto asset to an external blockchain address until the payment settles.
Custodial fee revenue receivable represents the fee earned and receivable by the Company for providing a dedicated secure cold storage solution to customers. The fee is based on a contractual percentage of the daily value of assets under custody and is collected on a monthly basis. Such custodial fee revenue income is included in the net revenue in the consolidated statements of operations.
Loans receivable represent cash and USDC loans made to users. These loans are collateralized with crypto assets held by those users in their crypto asset wallet on the Company’s platform. Loans receivable are subsequently measured at amortized cost.
The Company recognizes an allowance for doubtful accounts for receivables based on expected credit losses. In determining expected credit losses, the Company considers historical loss experience, the aging of its receivable balance, and the fair value of any collateral held. For loans receivable, the Company applies the collateral maintenance provision practical expedient. The Company would recognize credit losses on these loans if there is a collateral shortfall and it is not reasonably expected that the borrower will replenish such a shortfall.
Concentration of credit risk
The Company’s cash, cash equivalents, restricted cash, customer custodial funds, and accounts and loans receivable are potentially subject to concentration of credit risk. Cash, cash equivalents, restricted cash, and customer custodial funds are placed with financial institutions which are of high credit quality. The Company invests cash, cash equivalents, and customer 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 $102.1 million and $48.9 million of USDC as of March 31, 2021 and December 31, 2020, respectively. The underlying U.S. dollars are held by the issuer at federally insured U.S. depository institutions and in approved investments on behalf of, and for the benefit of, holders of USDC.
As of March 31, 2021, no customer accounted for more than 10% of the Company’s accounts and loans receivable. As of December 31, 2020, two customers accounted for more than 10% of the Company’s accounts and loans receivable. One customer had fiat of $45.0 million transferred to their platform account prior to December 31, 2020, but the Company had not yet settled the transaction by collecting payment. The Company had extended $20.5 million of post trade credit to the second customer as of December 31, 2020. As these customers had transferred or were in the process of transferring funds to their portfolio equal to or in excess of the crypto assets purchased, the Company did not record an allowance for doubtful accounts.
As of March 31, 2021, the Company had two payment processors and one bank partner account representing 12%, 9% and 9% of accounts and loans receivable, respectively. As of December 31, 2020, the Company had one payment processor and two bank partner accounts representing 7%, 8%, and 7% of accounts and loans receivable, respectively. During the three months ended March 31, 2021 and March 31, 2020, no customer accounted for more than 10% of total revenue.
Recent accounting pronouncements
Recently adopted accounting pronouncements
On June 16, 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. ASU 2016-13 replaces the “incurred loss” approach with an “expected loss” model for instruments measured at amortized cost. For available-for-sale debt securities, entities will be required to record allowances rather than reduce the carrying amount, as they do today under the other-than-temporary impairment model. It also simplifies the accounting model for purchased credit-impaired debt securities and loans. The Company adopted the standard on January 1, 2021 using the modified retrospective approach. The adoption of the standard did not have a material impact on the Company’s condensed consolidated financial statements, as the Company’s receivables are either fully collateralized or are short term in nature and therefore less susceptible to risks and uncertainty of credit losses over extended periods of time.
On August 29, 2018, the FASB issued Accounting Standards Update No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40)—Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which aligns the accounting for implementation costs incurred in a hosting arrangement that is a service contract with the accounting for implementation costs incurred to develop or obtain internal-use software under ASC 350-40, in order to determine which costs to capitalize and recognize as an asset and which costs to expense. The Company adopted the standard on January 1, 2021 using the prospective transition approach. The adoption of the standard did not have a material impact on the Company’s condensed consolidated financial statements.
On December 18, 2019, the FASB issued Accounting Standards Update No. 2019-12, Income Taxes: Simplifying the Accounting for Income Taxes, as part of its overall simplification initiative to reduce the costs and complexity of applying accounting standards while maintaining or improving the usefulness of the information provided to users of financial statements. Among other things, the new guidance simplifies intraperiod tax allocation and reduces the complexity in accounting for income taxes with year-to-date losses in interim periods. The Company adopted the standard on January 1, 2021. The adoption of the standard did not have a material impact on the Company’s condensed consolidated financial statements.
v3.21.1
ACQUISITIONS
 3 Months Ended
Mar. 31, 2021
Business Combinations [Abstract]  
ACQUISITIONS ACQUISITIONS2021 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 crypto infrastructure products and services on multiple blockchains 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 Accounting Standards Codification 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 (income) expense, net in the condensed consolidated statement of operations for the three months ended March 31, 2021.
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 final allocation of purchase consideration to assets and liabilities remains in process as the Company continues to evaluate certain balances, estimates, and assumptions during the measurement period (up to one year from the acquisition date). Any changes in the fair value of the assets acquired and liabilities assumed during the measurement period may result in adjustments to goodwill.
The total preliminary consideration transferred in the acquisition was $457.3 million, consisting of the following (in thousands):
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. These shares will be released 18 months after the closing date of the transaction.
The results of operations and the provisional fair values of the assets acquired and liabilities assumed have been included in the condensed consolidated financial statements as of the date of acquisition. The following table summarizes the 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 assets39,100 
Goodwill404,167 
Other non-current assets1,221 
Lease right-of-use assets808 
Total assets$465,119 
Accounts payable and accrued expenses$2,446 
Lease liabilities808 
Other liabilities4,597 
Total liabilities$7,851 
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
In process research and development ("IPR&D")1,200 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 for developed technology and general and administrative for user base. Amortization of the IPR&D will be recognized in developed technology 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 consolidated statements of operations.
2020 Acquisitions
Tagomi
On July 31, 2020, the Company completed the acquisition of Tagomi Holdings, Inc. (“Tagomi”), by acquiring all issued and outstanding shares of common stock and stock options of Tagomi. Tagomi is an institutional brokerage for crypto assets and offers an end-to-end brokerage solution that caters to sophisticated traders and institutions. Tagomi operates an advanced trading platform which pools liquidity from multiple venues to offer efficient pricing, algorithmic trading, a suite of prime services (including delayed settlement and borrowing and lending of fiat currency and crypto assets), and a flexible account hierarchy and operational processes that meet the needs of institutional clients.
The total preliminary consideration transferred in the acquisition was $41.8 million, consisting of the following (in thousands):
Common stock of the Company$30,589 
Replacement of Tagomi options and warrants760 
Cash1,906 
Settlement of pre-existing receivable8,537 
Total purchase consideration$41,792 
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$13,777 
Customer custodial funds19,837 
Crypto assets held5,687 
Accounts and loans receivable, net of allowance5,795 
Prepaid expenses and other current assets633 
Intangible assets7,350 
Goodwill22,516 
Other non-current assets1,611 
Total assets$77,206 
Custodial funds due to customers$20,787 
Accounts payable and accrued expenses5,953 
Crypto borrowings8,674
Total liabilities$35,414 
Net assets acquired$41,792 
The excess of purchase consideration over the fair value of net tangible and identifiable intangible assets acquired was recorded as goodwill of $22.5 million, which is not deductible for tax purposes. The goodwill balance is primarily attributed to the 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 date of acquisition (in thousands, except for years data):
Fair ValueUseful Life at Acquisition (in years)
Developed technology$6,600 3
Customer relationships400 5
Licenses350 Indefinite
The developed technology, customer relationships, and licenses represents the estimated fair value of Tagomi’s trading platform, existing relationships with customers, and money transmitter licenses held, respectively. 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 consolidated statements of operations.
A related party of the Company was a prior equity holder of Tagomi, and as a result of the acquisition, was entitled to receive up to 264,527 shares of the Company’s Class A common stock.
The impact of this acquisition was considered immaterial to both the current and prior periods of the Company’s consolidated financial statements and pro forma financial information has not been provided.
v3.21.1
REVENUE
 3 Months Ended
Mar. 31, 2021
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 March 31,
20212020
Net revenue
Transaction revenue
Retail, net$1,455,171 $162,002 
Institutional85,409 9,989 
Total transaction revenue1,540,580 171,991 
Subscription and services revenue
Custodial fee revenue23,451 2,712 
Staking revenue10,294 1,449 
Earn campaign revenue11,111 — 
Interest income3,320 2,559 
Other subscription and services revenue8,225 371 
Total subscription and services revenue56,401 7,091 
Total net revenue$1,596,981 $179,082 
Other revenue
Crypto asset sales revenue$203,799 $9,860 
Corporate interest income332 1,688 
Total other revenue$204,131 $11,548 
Total revenue$1,801,112 $190,630 
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.
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 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 may vary 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 include tiered pricing, based primarily on transaction volume. The fee rate charged per transaction is adjusted up or down if the volume processed for a specific historical period meets established thresholds. 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 due to transaction reversals as a reduction of net revenue, crypto asset losses due to transaction reversals are included in transaction expense.
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. Amounts receivable from customers for custodial fee revenue, net of allowance, were $12.9 million and $4.4 million as of March 31, 2021 and December 31, 2020, respectively. The allowance recognized against these fees was not material for any of the periods presented.
Staking revenue
The Company participates in networks with proof-of-stake consensus algorithms, through creating or validating blocks on the network. 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 available for transfer. Revenue is measured based on the number of tokens received and the fair value of the token at the date of recognition.
Earn campaign revenue
The Company provides a platform for crypto asset issuers, the customer, to engage with the Company’s retail users and teach them about new crypto assets through the use of educational tools, videos, and tutorials. In exchange for completing a task, such as watching the video or downloading an application, retail users may be eligible to receive crypto assets from the crypto asset issuer. The Company is the agent with respect to the delivery of the crypto assets. The Company earns a commission from the crypto asset issuer based on the amount of crypto assets that are distributed to users.
Interest income and corporate interest income
The Company holds customer custodial funds and cash and cash equivalents at certain third-party banks which earn interest. Interest income is calculated using the interest method and is not within the scope of Topic 606 – Revenue from Contracts with Customers. Interest earned on customer custodial funds is included in interest income within subscription and services revenue. Interest earned on cash and cash equivalents is included in corporate interest income, within other revenue.
Other subscription and services revenue
Other subscription and services revenue primarily includes revenue from early stage services being offered by the Company, such as subscription license revenue. Generally, contracts with customers of early stage products contain one performance obligation, do not have variable consideration, and are satisfied 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 income. Periodically, as an accommodation to customers, the Company may fulfill customer transactions using the Company’s own crypto assets. 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 within the consolidated statements of operations. The cost of crypto assets used in fulfilling customer transactions was $186.3 million and $10.2 million for the three months ended March 31, 2021 and March 31, 2020, 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. Fees charged to these users are on terms no more favorable than terms generally available to an unaffiliated third party under the same or similar circumstances. The Company recognized revenue with related parties of $5.3 million and $0.6 million for the three months ended March 31, 2021 and March 31, 2020, respectively. As of each of March 31, 2021 and December 31, 2020, amounts receivable from related parties was $2.4 million and $0.6 million, respectively.
Revenue by geographic location
In the table below are the revenues disaggregated by geography, based on domicile of the client or booking location, as applicable (in thousands):
Three Months Ended March 31,
20212020
United States$1,465,436 $142,187 
Rest of the World(1)
335,676 48,443 
     Total revenue$1,801,112 $190,630 
__________________
(1)No other individual country accounted for more than 10% of total revenue
v3.21.1
ACCOUNTS AND LOANS RECEIVABLE
 3 Months Ended
Mar. 31, 2021
Receivables [Abstract]  
ACCOUNTS AND LOANS RECEIVABLE ACCOUNTS AND LOANS RECEIVABLE
Accounts and loans receivable, net of allowance consisted of the following (in thousands):
March 31,December 31,
20212020
Customer funds receivable$33,570 $67,926 
In-transit customer receivables87,416 90,571 
Custodial fee revenue receivable13,059 4,636 
Loans receivable(1)
53,046 6,790 
Interest and other receivables26,400 21,709 
Allowance for doubtful accounts(2)
(4,663)(2,161)
Total accounts and loans receivable, net of allowance$208,828 $189,471 
__________________
(1)The fair value of collateral held as security exceeded the outstanding loans receivable as of March 31, 2021 and December 31, 2020, so no allowance was recorded.
(2)Includes provision for transaction losses of $3.3 million and $1.3 million as of March 31, 2021 and December 31, 2020, respectively.

Loans receivable
As of March 31, 2021 and December 31, 2020, the Company had granted cash and USDC loans to consumer users with an outstanding balance of $53 million and $6.8 million, respectively. The related interest receivable on the above loans as of March 31, 2021 and December 31, 2020, was $0.2 million and $0.04 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 receivables. Loans receivables are measured at amortized cost. The carrying value of the loans approximates their fair value. As of March 31, 2021 and December 31, 2020, there were no loans receivables past due.
ACCOUNTS AND LOANS RECEIVABLE ACCOUNTS AND LOANS RECEIVABLE
Accounts and loans receivable, net of allowance consisted of the following (in thousands):
March 31,December 31,
20212020
Customer funds receivable$33,570 $67,926 
In-transit customer receivables87,416 90,571 
Custodial fee revenue receivable13,059 4,636 
Loans receivable(1)
53,046 6,790 
Interest and other receivables26,400 21,709 
Allowance for doubtful accounts(2)
(4,663)(2,161)
Total accounts and loans receivable, net of allowance$208,828 $189,471 
__________________
(1)The fair value of collateral held as security exceeded the outstanding loans receivable as of March 31, 2021 and December 31, 2020, so no allowance was recorded.
(2)Includes provision for transaction losses of $3.3 million and $1.3 million as of March 31, 2021 and December 31, 2020, respectively.

Loans receivable
As of March 31, 2021 and December 31, 2020, the Company had granted cash and USDC loans to consumer users with an outstanding balance of $53 million and $6.8 million, respectively. The related interest receivable on the above loans as of March 31, 2021 and December 31, 2020, was $0.2 million and $0.04 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 receivables. Loans receivables are measured at amortized cost. The carrying value of the loans approximates their fair value. As of March 31, 2021 and December 31, 2020, there were no loans receivables past due.
v3.21.1
GOODWILL AND INTANGIBLE ASSETS
 3 Months Ended
Mar. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND INTANGIBLE ASSETS GOODWILL AND INTANGIBLE ASSETS
Goodwill
The following table reflects the changes in the carrying amount of goodwill (in thousands):
Three Months Ended
 March 31,
Year Ended December 31,
20212020
Balance, beginning of period$77,212 $54,696 
Additions due to acquisitions404,167 22,516 
Balance, end of period$481,379 $77,212 
There was no accumulated impairment balance recognized against goodwill at the beginning or end of the periods.
Intangible assets
Intangible assets consisted of the following (in thousands, except years data):
As of March 31, 2021Gross Carrying AmountAccumulated AmortizationIntangible Assets, NetWeighted Average Remaining Useful Life (in years)
Amortizing intangible assets
Acquired developed technology$56,708 $(16,886)$39,822 2.37
User base1,900 (123)1,777 2.42
Customer relationships66,591 (18,559)48,032 4.33
Trade name30 (30)— 0
Non-compete agreement2,402 (801)1,601 3.34
In-process research and development(1)
1,200 — 1,200 N/A
Indefinite life intangible assets
Domain name250 — 250 N/A
Licenses350 — 350 N/A
Crypto assets held651,356 — 651,356 N/A
Total$780,787 $(36,399)$744,388 
__________________
(1)Amortization begins once the technology is placed in service. IPR&D is expected to have a useful life of 3 years.

As of December 31, 2020Gross Carrying AmountAccumulated AmortizationIntangible Assets, NetWeighted Average Remaining Useful Life (in years)
Amortizing intangible assets
Acquired developed technology$20,708 $(13,024)$7,684 2.09
Customer relationships66,591 (15,771)50,820 4.58
Trade name30 (30)— 0
Non-compete agreement2,402 (681)1,721 3.58
Indefinite life intangible assets
Domain name250 — 250 N/A
Licenses350 — 350 N/A
Crypto assets held316,094 — 316,094 N/A
Total$406,425 $(29,506)$376,919 
Amortization expense of intangible assets was $6.9 million and $3.9 million for the three months ended March 31, 2021 and March 31, 2020, respectively. The Company estimates that there is no significant residual value related to its intangible assets. Impairment expense was $0.8 million and $0.3 million during the three months ended March 31, 2021 and March 31, 2020, respectively.
The expected future amortization expense for intangible assets other than IPR&D as of March 31, 2021 is as follows (in thousands):
2021 (for the remainder of)$22,292 
202228,536 
202322,604 
202411,346 
20256,454 
Thereafter— 
Total amortization expense$91,232 
v3.21.1
PREPAID EXPENSES AND OTHER ASSETS
 3 Months Ended
Mar. 31, 2021
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):
March 31,December 31,
20212020
Prepaid expenses and other current assets
Prepaid expenses$33,092 $36,218 
Warrant to purchase crypto assets18,809 2,575 
Other3,761 717 
Total prepaid expenses and other current assets$55,662 $39,510 
Other non-current assets
Equity method investments$1,056 $2,000 
Strategic investments34,921 26,146 
Deferred tax assets16,175 20,807 
Deposits(1)
89,528 68,287 
Total other non-current assets$141,680 $117,240 
__________________
(1)     Deposits represent amounts maintained with payments processors and financial institutions as part of the Company’s regular business operations.

Equity method investments
The Company acquired a 50% interest in Centre Consortium LLC in August 2019. The Company has significant influence over the entity, but does not have power or control. The Company’s share of earnings and losses are included in other (income) expense, net in the consolidated statements of operations.
Strategic investments
The Company invests in various companies and technologies through Coinbase Ventures, the Company’s venture capital arm. The components of other investments accounted for under the measurement alternative included in the table above are presented below (in thousands):
March 31,December 31,
20212020
Carrying amount, beginning of period$26,146 $15,599 
Net additions9,438 9,687 
Upward adjustments1,387 1,307 
Previously held interest in Bison Trails (see Note 3)(2,000)— 
Impairments and downward adjustments(50)(447)
Carrying amount, end of period$34,921 $26,146 
Upward adjustments and impairments and downward adjustments from remeasurement of investments are included in other (income) expense, net in the consolidated statements of operations. As of March 31, 2021, cumulative upward adjustments and impairments and downward adjustments were $2.9 million and $2.6 million, respectively.
v3.21.1
ACCOUNTS PAYABLE AND ACCRUED EXPENSES
 3 Months Ended
Mar. 31, 2021
Payables and Accruals [Abstract]  
ACCOUNTS PAYABLE AND ACCRUED EXPENSES ACCOUNTS PAYABLE AND ACCRUED EXPENSES
Accounts payable and accrued expenses consisted of the following (in thousands):
March 31,December 31,
20212020
Accounts payable$15,858 $12,031 
Accrued expenses68,913 33,987 
Accrued payroll and payroll related32,010 23,403 
Income taxes payable244,291 5,805 
Other payables12,883 9,885 
Total accounts payable and accrued expenses$373,955 $85,111 
v3.21.1
DERIVATIVES
 3 Months Ended
Mar. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVES DERIVATIVES
Notional amount of derivative contracts
The following table summarizes the notional amount of derivative contracts outstanding, in native units.
March 31,December 31,
20212020
Crypto asset borrowings with embedded derivatives
9,105 BTC
9,305 BTC
5,000 ETH
3,000 ETH
1,500,000 XRP
Warrant to purchase crypto assets
800,000 UNI
800,000 UNI
588,235 DDX
The following tables summarize information on derivative assets and liabilities that are reflected in the Company’s consolidated balance sheets, by accounting designation (in thousands):
Gross derivative assetsGross derivative liabilities
March 31, 2021Not designated as hedgesDesignated as hedgesTotal derivative assetsNet derivative assetsNot designated as hedgesDesignated as hedgesTotal derivative liabilitiesNet derivative liabilities
Crypto borrowings with embedded derivatives$— $— $— $— $— $394,491 $394,491 $394,491 
Warrant to purchase crypto assets18,809 — 18,809 18,809 — — — — 
Total fair value of derivative assets and liabilities$18,809 $— $18,809 $18,809 $— $394,491 $394,491 $394,491 
Gross derivative assetsGross derivative liabilities
December 31, 2020Not designated as hedgesDesignated as hedgesTotal derivative assetsNet derivative assetsNot designated as hedgesDesignated as hedgesTotal derivative liabilitiesNet derivative liabilities
Crypto borrowings with embedded derivatives$— $— $— $— $12,696 $114,395 $127,091 $127,091 
Warrant to purchase crypto assets2,575 — 2,575 2,575 — — — — 
Total fair value of derivative assets and liabilities$2,575 $— $2,575 $2,575 $12,696 $114,395 $127,091 $127,091 
Fair value hedge gains and losses
The Company includes gains (losses) on the hedging derivative and the hedged item in other operating expenses within the consolidated statements of operations. The following tables present derivative instruments used in fair value hedge accounting relationships, as well as pre-tax gains (losses) recorded on such derivatives and the related hedged items (in thousands):
Gains (losses) recorded in income
Three months ended March 31, 2021DerivativesHedged itemsIncome statement impact
Crypto borrowings with embedded derivatives$(267,400)$258,124 $(9,276)
Gains (losses) recorded in income
Three months ended March 31, 2020DerivativesHedged itemsIncome statement impact
Crypto borrowings with embedded derivatives$— $— $— 
The following amounts were recorded in the consolidated balance sheets related to certain cumulative fair value hedge basis adjustments that are expected to reverse through the consolidated statements of operations in future periods as an adjustment to other operating expense (in thousands):
Cumulative amount of fair value hedging adjustments included in the carrying amount of hedged items
March 31, 2021Carrying amount of the hedged itemsActive hedging relationshipsDiscontinued hedging relationshipsTotal
Assets$518,225 $370,617 $— $370,617 
Liabilities— — — — 
Cumulative amount of fair value hedging adjustments included in the carrying amount of hedged items
December 31, 2020Carrying amount of the hedged itemsActive hedging relationshipsDiscontinued hedging relationshipsTotal
Assets$247,735 $113,102 $— $113,102 
Liabilities— — — — 
Crypto asset borrowings
The carrying value of the outstanding host contract as of March 31, 2021 and December 31, 2020 was $149.3 million and $144.2 million, respectively. The fair value of the embedded derivative liabilities as of March 31, 2021 and December 31, 2020 was $394.5 million and $127.1 million, respectively. The fee on these borrowings ranged from 1.7% to 7%. During the three months ended March 31, 2021 and March 31, 2020, the Company paid $4.3 million and zero of borrowing fees in crypto assets, respectively.
v3.21.1
FAIR VALUE MEASUREMENTS
 3 Months Ended
Mar. 31, 2021
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
The following table sets forth by level, within the fair value hierarchy, the Company’s assets and liabilities measured and recorded at fair value on a recurring basis (in thousands):
March 31, 2021December 31, 2020
Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets
Cash and cash equivalents(1)
$701,511 $— $— $701,511 $212,818 $— $— $212,818 
Customer custodial funds(2)
2,721,499 — — 2,721,499 1,171,274 — — 1,171,274 
Crypto assets held(3)
— 518,225 — 518,225 — 247,735 — 247,735 
Derivative assets(4)
— — 18,809 18,809 — — 2,575 2,575 
Total assets$3,423,010 $518,225 $18,809 $3,960,044 $1,384,092 $247,735 $2,575 $1,634,402 
Liabilities
Crypto asset borrowings(5)
$— $394,491 $— $394,491 $— $127,091 $— $127,091 
Total liabilities$— $394,491 $— $394,491 $— $127,091 $— $127,091 
__________________
(1)Excludes corporate cash of $1,281.8 million and $849.0 million held in deposit at financial institutions and crypto asset trading venues and not measured and recorded at fair value as of March 31, 2021 and December 31, 2020, respectively.
(2)Excludes customer custodial funds of $3,570.3 million and $2,592.1 million held in deposit at financial institutions and not measured and recorded at fair value as of March 31, 2021 and December 31, 2020, respectively.
(3)Includes crypto assets held that have been designated as hedged items in fair value hedges and excludes crypto assets of $133.1 million and $68.4 million held at cost as of March 31, 2021 and December 31, 2020, respectively.
(4)Represents warrants to purchase crypto assets, which are included in prepaid expenses and other current assets in the consolidated balance sheets.
(5)Excludes crypto asset borrowings of $149.3 million and $144.2 million, representing the host contract which is not measured and recorded at fair value as of March 31, 2021 and December 31, 2020, respectively.

The Company did not make any transfers between the levels of the fair value hierarchy during the three months ended March 31, 2021 and the year ended December 31, 2020.
Derivative asset
The following table presents a reconciliation of the derivative assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (in thousands):
Balance as of January 1, 2021$2,575
Fair value adjustment16,234
Balance as of March 31, 2021$18,809
The derivative assets balance is included in prepaid expenses and other current assets in the consolidated balance sheets. The derivative assets are solely represented by warrant agreements to purchase crypto assets from asset issuers. Upon exercise of the warrant, the underlying crypto assets are subject to transfer and sale restrictions, and vest over periods of between one to four years. The fair value of the warrants were based on the number of crypto assets to be received upon exercise, the fair value of the crypto asset, and a discount for lack of marketability due to the underlying restriction on the crypto assets. The discount for lack of marketability was estimated using the Finnerty and Asian put option models. The fair value adjustments are included in other operating expense in the consolidated statements of operations. The following significant unobservable inputs were used:
March 31, 2021
Discount rate
0.01% - 0.15%
Historical volatility of comparable crypto assets
105% - 175%
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. Such fair value measurements are based predominately on Level 3 inputs. Fair value of crypto assets held are predominantly based on Level 2 inputs.
Financial assets and liabilities not measured and recorded at fair value
The Company’s financial instruments, including cash, restricted cash, certain customer custodial funds, USDC, and custodial funds due to customers are classified as Level 1 and carried at amortized cost, which approximates their fair value. The loans receivable are classified as Level 3 and are carried at amortized cost, which approximates their fair value.
v3.21.1
CONVERTIBLE PREFERRED STOCK
 3 Months Ended
Mar. 31, 2021
Temporary Equity Disclosure [Abstract]  
CONVERTIBLE PREFERRED STOCK CONVERTIBLE PREFERRED STOCK
A summary of the Company’s authorized, issued, and outstanding shares of convertible preferred stock was as follows (in thousands, except per share data):
As of March 31, 2021
Shares AuthorizedShares Issued and OutstandingOriginal Issue Price per ShareLiquidation PreferenceCarrying Value
FF Preferred5,739 5,739 $— $— $11 
Series A30,929 27,232 0.19721 5,371 4,923 
Series B25,416 21,831 1.00676 21,978 19,228 
Series C32,542 31,620 2.76488 87,426 83,047 
Series D17,471 17,428 8.25390 143,850 135,383 
Series E14,508 8,557 36.19220 309,695 309,445 
126,605 112,407 $568,320 $552,037 
As of December 31, 2020
Shares AuthorizedShares Issued and OutstandingOriginal Issue Price per ShareLiquidation PreferenceCarrying Value
FF Preferred5,739 5,739 $— $— $11 
Series A30,929 27,349 0.19721 5,394 4,946 
Series B25,416 21,831 1.00676 21,978 19,228 
Series C32,542 31,656 2.76488 87,525 83,146 
Series D17,471 17,471 8.25390 144,205 135,738 
Series E14,508 8,832 36.19220 319,648 319,398 
126,605 112,878 $578,750 $562,467 
Since inception, the Company has incurred share issuance costs totaling approximately $0.8 million, which has been applied to reduce total proceeds.
The change in the number of outstanding shares of convertible preferred stock per class was as follows (in thousands):
Series FFSeries ASeries BSeries CSeries DSeries E
Balance at January 1, 20215,739 27,349 21,831 31,656 17,471 8,832 
Conversion to Class A common stock— (117)— (36)(43)(275)
Balance at March 31, 20215,739 27,232 21,831 31,620 17,428 8,557 
During the three months ended March 31, 2021 and year ended December 31, 2020, there were sales of convertible preferred stock between stockholders. Pursuant to the terms of sale of the convertible preferred stock, those preferred shares converted to Class A common stock. The Company did not sell any shares or receive any proceeds from the transactions.
v3.21.1
COMMON STOCK
 3 Months Ended
Mar. 31, 2021
Equity [Abstract]  
COMMON STOCK COMMON STOCK
Common stock
Effective October 1, 2018, the Company implemented a dual class voting structure pursuant to which it authorized the issuance of Class A common stock and Class B common stock. The Class B common stock has ten votes per share and the Class A common stock has one vote per share. The common stock outstanding prior to the implementation of the dual class voting structure was reclassified into Class B common stock. Generally, any subsequent sale or transfer of Class B common stock will result in the automatic conversion of such Class B common stock into Class A common stock (subject to certain customary exceptions). Generally, any subsequent sale or transfer of convertible preferred stock that is convertible into Class B common stock will result in convertible preferred stock becoming convertible into Class A common stock (subject to certain customary exceptions). The holders of shares of Class A common stock and Class B common stock, voting as a separate class, have a right to elect two members of the Company’s board of directors (the “Board”). Furthermore, holders of Class A common stock and Class B common stock, voting together with holders of convertible preferred stock (other than Series E convertible preferred stock) and Series FF preferred stock on an as-converted to common stock basis, are entitled to fill any remaining vacancies on the Board.
As of March 31, 2021, the Company was authorized to issue up to 490,413,936 shares of common stock with par value of $0.00001 per share, consisting of 282,000,000 shares of Class A common stock and 208,413,936 shares of Class B common stock. Holders of the Company’s common stock are entitled to dividends if and when declared by the Board.
The Company has reserved shares of Class A common stock and Class B common stock for issuance for the following purposes (in thousands):
March 31,December 31,
20212020
Class A common stock
Conversion of Series E convertible preferred stock8,557 8,832 
Options issued and outstanding under 2013 Plan2,831 3,550 
Options issued and outstanding under 2019 Plan34,940 37,232 
RSUs issued and outstanding under 2019 Plan7,515 3,766 
Shares available for future issuance under the 2019 Plan5,077 2,193 
Replacement options issued and outstanding from Tagomi acquisition18 32 
Replacement options issued and outstanding from Bison Trails acquisition355 — 
Exercise and conversion of outstanding warrant— 4 
Shares available for future issuance of warrants2,296 2,296 
Total Class A common stock shares reserved61,589 57,905 
Class B common stock
Conversion of FF Preferred and Series A, B, C, and D convertible preferred stock103,850 104,046 
Options issued and outstanding under 2013 Plan16,858 22,442 
Exercise and conversion of outstanding warrant— 408 
Total Class B common stock shares reserved120,708 126,896 
v3.21.1
STOCK-BASED COMPENSATION
 3 Months Ended
Mar. 31, 2021
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, 202163,256 $14.84 8.17$2,527,396 
Granted470 3.45 
Exercised(7,918)7.58 
Forfeited and cancelled(806)19.86 
Balance at March 31, 202155,002 15.72 8.1015,842,278 
Vested and exercisable at March 31, 202121,518 7.75 6.696,369,435 
Vested and expected to vest at March 31, 202145,708 14.15 7.8513,237,287 

As of March 31, 2021, there was total unrecognized compensation cost of $225.5 million related to unvested stock options. These costs are expected to be recognized over a weighted-average period of approximately 2.71 years.
As of March 31, 2021, there were 1,290,405 shares subject to repurchase related to stock options early exercised and not yet vested, but that are expected to vest. As of March 31, 2021, the Company recorded a liability related to these shares subject to repurchase in the amount of $24.2 million, which is included within other current liabilities in the accompanying consolidated balance sheets.
Restricted stock units
During December 2020, the Company began issuing restricted stock units (“RSUs”). These RSUs vest upon the satisfaction of a service-based condition. In general, the RSUs vest over a service period ranging from two to four years. Once vested, the RSUs are settled by delivery of Class A common stock.
Activity of RSUs outstanding under the Plan are as follows (in thousands, except per share data):
Number of sharesWeighted-
Average
Grant
Date Fair
Value Per Share
Balance at January 1, 20213,766 $54.80 
Granted3,960 211.92
Vested(204)54.80 
Forfeited and cancelled(41)188.60 
Balance at March 31, 20217,481 137.25 
For RSUs granted during the three months ended March 31, 2021, the fair value of the Class A common stock was determined using linear interpolation between the dates at which the Company obtained third-party valuations, for financial reporting purposes. This method was determined to be reasonable, as no single event was identified that caused the increase in the fair value of the common stock.
As of March 31, 2021, there was total unrecognized compensation cost of $956.2 million related to unvested RSUs. These costs are expected to be recognized over a weighted-average period of approximately 2.81 years.
Restricted common stock
As part of the acquisitions of Tagomi and Bison Trails, the Company issued restricted Class A common stock. Vesting of this restricted Class A common stock is dependent on a service-based vesting condition that is 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 are as follows (in thousands, except per share data):
Number of sharesWeighted-
Average
Grant
Date Fair
Value Per Share
Balance at January 1, 2021824 $23.46 
Granted1,319 171.85
Vested— — 
Forfeited and cancelled— — 
Balance at March 31, 20212,143 114.80 
As of March 31, 2021, there was total unrecognized compensation cost of $229.9 million related to unvested restricted Class A common stock. These costs are expected to be recognized over a weighted-average period of approximately 2.81 years.
Stock-based compensation expense
Stock based compensation is included in the following components of expenses on the accompanying consolidated statements of operations (in thousands):
Three Months Ended March 31,
20212020
Technology and development$73,256 $4,882 
Sales and marketing3,531 176 
General and administrative27,841 4,122 
Total$104,628 $9,180 
v3.21.1
INCOME TAXES
 3 Months Ended
Mar. 31, 2021
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The Company’s effective tax rate (“ETR”) for the three months ended March 31, 2021 and March 31, 2020 was 22.6% and 8.4%, respectively. The ETR of 22.6% for the three months ended March 31, 2021 was higher than the U.S. statutory rate of 21% due to (i) accrual for U.S. state taxes, (ii) the tax effect of non-deductible stock-based compensation, (iii) non-deductible costs related to the Company’s direct listing of its Class A common stock on the Nasdaq Global Select Market (the “Direct Listing”) capitalized for tax, offset by rate benefits due to (i) U.S. federal benefits from foreign derived intangible income, (ii) U.S. federal and California state research and development credits, and (iii) the tax effect of compensation expense on deductible stock option exercises at a fair market in excess of their historic book amortization.
The ETR of 22.6% for the three months ended March 31, 2021 was higher than the ETR of 8.4% for the three months ended March 31, 2020 primarily due to a material increase in pre-tax book income in relation to recurring permanent items.
v3.21.1
NET INCOME PER SHARE
 3 Months Ended
Mar. 31, 2021
Earnings Per Share [Abstract]  
NET INCOME PER SHARE NET INCOME PER SHARE
The computation of net income per share is as follows (in thousands, except per share amounts):
Three Months Ended March 31,
20212020
Basic net income per share:
Numerator
Net income$771,463 $31,973 
Less: Income allocated to participating securities(469,567)(31,973)
Net income attributable to common stockholders, basic$301,896 $— 
Denominator
Weighted-average shares of common stock used to compute net income per share attributable to common stockholders, basic79,373 66,957 
Net income per share attributable to common stockholders, basic$3.80 $— 
Diluted net income per share:
Numerator
Net income$771,463 $31,973 
Less: Income allocated to participating securities(383,744)(31,973)
Net income attributable to common stockholders - diluted$387,719 $— 
Denominator
Weighted-average shares of common stock used to compute net income per share attributable to common stockholders, basic79,373 66,957 
Weighted-average effect of potentially dilutive securities:
Stock options44,492 — 
RSUs2,841 — 
Warrants290 — 
Weighted-average shares of common stock used to compute net income per share attributable to common stockholders, diluted126,996 66,957 
Net income per share attributable to common stockholders, diluted$3.05 $— 
The Company’s convertible preferred stock and the restricted Class A common stock granted as consideration in the acquisitions of Tagomi and Bison Trails 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 the liquidation and dividend rights are identical for Class A common stock and Class B common stock, 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 March 31,
20212020
Employee stock options192 41,408 
RSUs2,331 — 
Warrants— 408 
Contingent consideration recognized in asset acquisition— 691 
Total2,523 42,507 
v3.21.1
COMMITMENTS AND CONTINGENCIES
 3 Months Ended
Mar. 31, 2021
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES
Crypto asset wallets
The Company has committed to securely store all crypto assets it holds on behalf of users. As such, the Company may be liable to its users for losses arising from theft or loss of user 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 within its control, and (iii) it has established security around custodial private keys to minimize the risk of theft or loss. Since the risk of loss is remote, the Company had not recorded a liability at March 31, 2021 or December 31, 2020.
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 holders of convertible preferred stock 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 Company has had no prior indemnification claims; (ii) due to the unique facts and circumstances involved in each particular agreement; and (iii) 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 proceedings
The Company is subject to various litigations, 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 consolidated financial statements.
In July 2017, the Enforcement Division of the Commodity Futures Trading Commission (“CFTC”) commenced an investigation that has covered topics including an 2017 Ethereum market event, trades made in 2017 by one of the Company’s then-current employees, the listing of Bitcoin Cash on the Company’s platform, and the design and operation of certain algorithmic functions related to liquidity management on the Company’s platform. In the first quarter of 2021, the parties negotiated a full and final settlement agreement, which did not have a material impact on the consolidated financial statements.
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 and the withholding of tax at source. Additional guidance may be issued by U.S. and non-U.S. governing bodies that may significantly differ from the Company's interpretation of the law, which could have unforeseen effects on our financial condition and results of operations, and as a result, the related impact on our financial condition and results of operations is not estimable.
v3.21.1
SUBSEQUENT EVENTS
 3 Months Ended
Mar. 31, 2021
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS SUBSEQUENT EVENTS
Employee Stock Purchase Plan
In February 2021, the Board approved and adopted the 2021 Employee Stock Purchase Plan ("ESPP"). The ESPP allows eligible employees the option to purchase shares of the Company's Class A common stock at a fifteen percent 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 shares issued pursuant to its ESPP on a straight-line basis over the offering period, which is twenty-four months. The ESPP went effective on the day the Company’s registration statement went effective, April 1, 2021.
Amended and restated certificate of incorporationOn April 1, 2021, the Company amended and restated its certificate of incorporation (the “restated 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 Board. Holders of Class A common stock are entitled to one vote per share, and holders of Class B common stock are entitled to twenty votes per share. 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.
Skew LTD
On April 29, 2021, the Company entered into an agreement to acquire all outstanding shares of common stock of Skew LTD (“Skew”). Skew is a leading institutional data visualization and analytics platform for crypto assets. The acquisition is expected to be complete in the second quarter of 2021.
San Francisco office closureIn May 2021, the Company decided to vacate its San Francisco office space by January 1, 2022.
v3.21.1
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
 3 Months Ended
Mar. 31, 2021
Accounting Policies [Abstract]  
Basis of presentation and principles of consolidation
Basis of presentation and principles of consolidation
The accompanying condensed consolidated financial statements for the three months ended March 31, 2021 and March 31, 2020 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 results of operations and statements of cash flows for the three months ended March 31, 2021 and March 31, 2020. The unaudited condensed consolidated results of operations and cash flows for the three months ended March 31, 2021 and March 31, 2020 are not necessarily indicative of the results to be expected for the full year or any other period.
These unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements and notes included in the Company’s final prospectus filed with the Securities and Exchange Commission pursuant to Rule 424(b) under the Securities Act of 1933, as amended, on April 14, 2021 (the “Prospectus”).
These accompanying unaudited 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.
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 Prospectus, other than as discussed below
Use of estimates
Use of estimates
The preparation of the consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions in the Company’s 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 intangible assets; the useful lives of property and equipment; the Company’s incremental borrowing rate; the fair value of assets acquired and liabilities assumed in business combinations; the fair value of derivatives and related hedges; 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 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
Business combinations
Business combinations
The results of businesses acquired in a business combination are included in the Company’s consolidated financial statements from the date of the acquisition. Purchase accounting results in assets and liabilities of an acquired business being recorded at their estimated fair values on the acquisition date. Any excess consideration over the fair value of assets acquired and liabilities assumed is recognized as goodwill. Acquisition-related costs incurred by the Company are recognized as an expense in general and administrative expenses within the consolidated statements of operations.
The Company uses its best estimates and assumptions to assign fair value to the tangible and intangible assets acquired and liabilities assumed at the acquisition date. The Company’s estimates are inherently uncertain and subject to refinement.
During the measurement period, which may be up to one year from the acquisition date, and to the extent that the value was not previously finalized, the Company may record adjustments to the fair value of these tangible and intangible assets acquired and liabilities assumed, with the corresponding offset to goodwill. In addition, uncertain tax positions and tax-related valuation allowances are initially recorded in connection with a business combination as of the acquisition date. The Company continues to collect information about facts and circumstance that existed at the date of acquisition and reevaluates these estimates and assumptions quarterly and records any adjustments to the Company’s preliminary estimates to goodwill, provided that the Company is within the measurement period. Upon the conclusion of the measurement period or final determination of the fair value of assets acquired or liabilities assumed, whichever comes first, any subsequent adjustments are recorded to the Company’s consolidated statements of operations.
Accounts and loans receivable and allowance for doubtful accounts
Accounts and loans receivable and allowance for doubtful accounts
Accounts and loans receivables are contractual rights to receive cash either on demand or on fixed or determinable dates, and are recognized as an asset on the Company’s balance sheet. Accounts and loans receivable consists of customer funds receivable, in-transit funds receivable, custodial fee revenue receivable, loans receivable, interest receivable, and other receivables.
Customer funds receivable, including in-transit funds receivable, represent settlements due for crypto assets delivered to customers and from third-party payment processors and banks for settled customer transactions. Customer funds receivable are typically received within one or two business days of the transaction date. The Company establishes withdrawal-based limits in order to mitigate potential losses by preventing customers from withdrawing the crypto asset to an external blockchain address until the payment settles.
Custodial fee revenue receivable represents the fee earned and receivable by the Company for providing a dedicated secure cold storage solution to customers. The fee is based on a contractual percentage of the daily value of assets under custody and is collected on a monthly basis. Such custodial fee revenue income is included in the net revenue in the consolidated statements of operations.
Loans receivable represent cash and USDC loans made to users. These loans are collateralized with crypto assets held by those users in their crypto asset wallet on the Company’s platform. Loans receivable are subsequently measured at amortized cost.
The Company recognizes an allowance for doubtful accounts for receivables based on expected credit losses. In determining expected credit losses, the Company considers historical loss experience, the aging of its receivable balance, and the fair value of any collateral held. For loans receivable, the Company applies the collateral maintenance provision practical expedient. The Company would recognize credit losses on these loans if there is a collateral shortfall and it is not reasonably expected that the borrower will replenish such a shortfall.
Concentration of credit risk
Concentration of credit risk
The Company’s cash, cash equivalents, restricted cash, customer custodial funds, and accounts and loans receivable are potentially subject to concentration of credit risk. Cash, cash equivalents, restricted cash, and customer custodial funds are placed with financial institutions which are of high credit quality. The Company invests cash, cash equivalents, and customer 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 $102.1 million and $48.9 million of USDC as of March 31, 2021 and December 31, 2020, respectively. The underlying U.S. dollars are held by the issuer at federally insured U.S. depository institutions and in approved investments on behalf of, and for the benefit of, holders of USDC.
As of March 31, 2021, no customer accounted for more than 10% of the Company’s accounts and loans receivable. As of December 31, 2020, two customers accounted for more than 10% of the Company’s accounts and loans receivable. One customer had fiat of $45.0 million transferred to their platform account prior to December 31, 2020, but the Company had not yet settled the transaction by collecting payment. The Company had extended $20.5 million of post trade credit to the second customer as of December 31, 2020. As these customers had transferred or were in the process of transferring funds to their portfolio equal to or in excess of the crypto assets purchased, the Company did not record an allowance for doubtful accounts.
As of March 31, 2021, the Company had two payment processors and one bank partner account representing 12%, 9% and 9% of accounts and loans receivable, respectively. As of December 31, 2020, the Company had one payment processor and two bank partner accounts representing 7%, 8%, and 7% of accounts and loans receivable, respectively. During the three months ended March 31, 2021 and March 31, 2020, no customer accounted for more than 10% of total revenue.
Recent accounting pronouncements
Recent accounting pronouncements
Recently adopted accounting pronouncements
On June 16, 2016, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2016-13, Financial Instruments - Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments (“ASU 2016-13”), which significantly changes how entities will measure credit losses for most financial assets and certain other instruments that are not measured at fair value through net income. ASU 2016-13 replaces the “incurred loss” approach with an “expected loss” model for instruments measured at amortized cost. For available-for-sale debt securities, entities will be required to record allowances rather than reduce the carrying amount, as they do today under the other-than-temporary impairment model. It also simplifies the accounting model for purchased credit-impaired debt securities and loans. The Company adopted the standard on January 1, 2021 using the modified retrospective approach. The adoption of the standard did not have a material impact on the Company’s condensed consolidated financial statements, as the Company’s receivables are either fully collateralized or are short term in nature and therefore less susceptible to risks and uncertainty of credit losses over extended periods of time.
On August 29, 2018, the FASB issued Accounting Standards Update No. 2018-15, Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40)—Customer’s Accounting for Implementation Costs Incurred in a Cloud Computing Arrangement That Is a Service Contract, which aligns the accounting for implementation costs incurred in a hosting arrangement that is a service contract with the accounting for implementation costs incurred to develop or obtain internal-use software under ASC 350-40, in order to determine which costs to capitalize and recognize as an asset and which costs to expense. The Company adopted the standard on January 1, 2021 using the prospective transition approach. The adoption of the standard did not have a material impact on the Company’s condensed consolidated financial statements.
On December 18, 2019, the FASB issued Accounting Standards Update No. 2019-12, Income Taxes: Simplifying the Accounting for Income Taxes, as part of its overall simplification initiative to reduce the costs and complexity of applying accounting standards while maintaining or improving the usefulness of the information provided to users of financial statements. Among other things, the new guidance simplifies intraperiod tax allocation and reduces the complexity in accounting for income taxes with year-to-date losses in interim periods. The Company adopted the standard on January 1, 2021. The adoption of the standard did not have a material impact on the Company’s condensed 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.
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 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 may vary 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 include tiered pricing, based primarily on transaction volume. The fee rate charged per transaction is adjusted up or down if the volume processed for a specific historical period meets established thresholds. 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 due to transaction reversals as a reduction of net revenue, crypto asset losses due to transaction reversals are included in transaction expense.
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.
Staking revenue
The Company participates in networks with proof-of-stake consensus algorithms, through creating or validating blocks on the network. 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 available for transfer. Revenue is measured based on the number of tokens received and the fair value of the token at the date of recognition.
Earn campaign revenue
The Company provides a platform for crypto asset issuers, the customer, to engage with the Company’s retail users and teach them about new crypto assets through the use of educational tools, videos, and tutorials. In exchange for completing a task, such as watching the video or downloading an application, retail users may be eligible to receive crypto assets from the crypto asset issuer. The Company is the agent with respect to the delivery of the crypto assets. The Company earns a commission from the crypto asset issuer based on the amount of crypto assets that are distributed to users.
Interest income and corporate interest income
The Company holds customer custodial funds and cash and cash equivalents at certain third-party banks which earn interest. Interest income is calculated using the interest method and is not within the scope of Topic 606 – Revenue from Contracts with Customers. Interest earned on customer custodial funds is included in interest income within subscription and services revenue. Interest earned on cash and cash equivalents is included in corporate interest income, within other revenue.
Other subscription and services revenue
Other subscription and services revenue primarily includes revenue from early stage services being offered by the Company, such as subscription license revenue. Generally, contracts with customers of early stage products contain one performance obligation, do not have variable consideration, and are satisfied 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 income. Periodically, as an accommodation to customers, the Company may fulfill customer transactions using the Company’s own crypto assets. 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 within the 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. Fees charged to these users are on terms no more favorable than terms generally available to an unaffiliated third party under the same or similar circumstances.
Loans receivable Loans receivableThe 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 receivables. Loans receivables are measured at amortized cost.
v3.21.1
ACQUISITIONS (Tables)
 3 Months Ended
Mar. 31, 2021
Business Combinations [Abstract]  
Schedule of business acquisitions by acquisition
The total preliminary consideration transferred in the acquisition was $457.3 million, consisting of the following (in thousands):
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 total preliminary consideration transferred in the acquisition was $41.8 million, consisting of the following (in thousands):
Common stock of the Company$30,589 
Replacement of Tagomi options and warrants760 
Cash1,906 
Settlement of pre-existing receivable8,537 
Total purchase consideration$41,792 
Schedule of recognized identified assets acquired and liabilities assumed 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 assets39,100 
Goodwill404,167 
Other non-current assets1,221 
Lease right-of-use assets808 
Total assets$465,119 
Accounts payable and accrued expenses$2,446 
Lease liabilities808 
Other liabilities4,597 
Total liabilities$7,851 
Net assets acquired$457,268 
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$13,777 
Customer custodial funds19,837 
Crypto assets held5,687 
Accounts and loans receivable, net of allowance5,795 
Prepaid expenses and other current assets633 
Intangible assets7,350 
Goodwill22,516 
Other non-current assets1,611 
Total assets$77,206 
Custodial funds due to customers$20,787 
Accounts payable and accrued expenses5,953 
Crypto borrowings8,674
Total liabilities$35,414 
Net assets acquired$41,792 
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$36,000 3
In process research and development ("IPR&D")1,200 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 date of acquisition (in thousands, except for years data):
Fair ValueUseful Life at Acquisition (in years)
Developed technology$6,600 3
Customer relationships400 5
Licenses350 Indefinite
v3.21.1
REVENUE (Tables)
 3 Months Ended
Mar. 31, 2021
Revenue from Contract with Customer [Abstract]  
Schedule of disaggregated revenue by source
The following table presents revenue of the Company disaggregated by revenue source (in thousands):
Three Months Ended March 31,
20212020
Net revenue
Transaction revenue
Retail, net$1,455,171 $162,002 
Institutional85,409 9,989 
Total transaction revenue1,540,580 171,991 
Subscription and services revenue
Custodial fee revenue23,451 2,712 
Staking revenue10,294 1,449 
Earn campaign revenue11,111 — 
Interest income3,320 2,559 
Other subscription and services revenue8,225 371 
Total subscription and services revenue56,401 7,091 
Total net revenue$1,596,981 $179,082 
Other revenue
Crypto asset sales revenue$203,799 $9,860 
Corporate interest income332 1,688 
Total other revenue$204,131 $11,548 
Total revenue$1,801,112 $190,630 
Schedule of revenues disaggregated by geography
In the table below are the revenues disaggregated by geography, based on domicile of the client or booking location, as applicable (in thousands):
Three Months Ended March 31,
20212020
United States$1,465,436 $142,187 
Rest of the World(1)
335,676 48,443 
     Total revenue$1,801,112 $190,630 
__________________
(1)No other individual country accounted for more than 10% of total revenue
v3.21.1
ACCOUNTS AND LOANS RECEIVABLE (Tables)
 3 Months Ended
Mar. 31, 2021
Receivables [Abstract]  
Schedule of accounts receivable, net of allowance
Accounts and loans receivable, net of allowance consisted of the following (in thousands):
March 31,December 31,
20212020
Customer funds receivable$33,570 $67,926 
In-transit customer receivables87,416 90,571 
Custodial fee revenue receivable13,059 4,636 
Loans receivable(1)
53,046 6,790 
Interest and other receivables26,400 21,709 
Allowance for doubtful accounts(2)
(4,663)(2,161)
Total accounts and loans receivable, net of allowance$208,828 $189,471 
__________________
(1)The fair value of collateral held as security exceeded the outstanding loans receivable as of March 31, 2021 and December 31, 2020, so no allowance was recorded.
(2)Includes provision for transaction losses of $3.3 million and $1.3 million as of March 31, 2021 and December 31, 2020, respectively.
v3.21.1
GOODWILL AND INTANGIBLE ASSETS (Tables)
 3 Months Ended
Mar. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of goodwill
The following table reflects the changes in the carrying amount of goodwill (in thousands):
Three Months Ended
 March 31,
Year Ended December 31,
20212020
Balance, beginning of period$77,212 $54,696 
Additions due to acquisitions404,167 22,516 
Balance, end of period$481,379 $77,212 
Schedule of indefinite-lived intangible assets
Intangible assets consisted of the following (in thousands, except years data):
As of March 31, 2021Gross Carrying AmountAccumulated AmortizationIntangible Assets, NetWeighted Average Remaining Useful Life (in years)
Amortizing intangible assets
Acquired developed technology$56,708 $(16,886)$39,822 2.37
User base1,900 (123)1,777 2.42
Customer relationships66,591 (18,559)48,032 4.33
Trade name30 (30)— 0
Non-compete agreement2,402 (801)1,601 3.34
In-process research and development(1)
1,200 — 1,200 N/A
Indefinite life intangible assets
Domain name250 — 250 N/A
Licenses350 — 350 N/A
Crypto assets held651,356 — 651,356 N/A
Total$780,787 $(36,399)$744,388 
__________________
(1)Amortization begins once the technology is placed in service. IPR&D is expected to have a useful life of 3 years.

As of December 31, 2020Gross Carrying AmountAccumulated AmortizationIntangible Assets, NetWeighted Average Remaining Useful Life (in years)
Amortizing intangible assets
Acquired developed technology$20,708 $(13,024)$7,684 2.09
Customer relationships66,591 (15,771)50,820 4.58
Trade name30 (30)— 0
Non-compete agreement2,402 (681)1,721 3.58
Indefinite life intangible assets
Domain name250 — 250 N/A
Licenses350 — 350 N/A
Crypto assets held316,094 — 316,094 N/A
Total$406,425 $(29,506)$376,919 
Schedule of finite-lived intangible assets
Intangible assets consisted of the following (in thousands, except years data):
As of March 31, 2021Gross Carrying AmountAccumulated AmortizationIntangible Assets, NetWeighted Average Remaining Useful Life (in years)
Amortizing intangible assets
Acquired developed technology$56,708 $(16,886)$39,822 2.37
User base1,900 (123)1,777 2.42
Customer relationships66,591 (18,559)48,032 4.33
Trade name30 (30)— 0
Non-compete agreement2,402 (801)1,601 3.34
In-process research and development(1)
1,200 — 1,200 N/A
Indefinite life intangible assets
Domain name250 — 250 N/A
Licenses350 — 350 N/A
Crypto assets held651,356 — 651,356 N/A
Total$780,787 $(36,399)$744,388 
__________________
(1)Amortization begins once the technology is placed in service. IPR&D is expected to have a useful life of 3 years.

As of December 31, 2020Gross Carrying AmountAccumulated AmortizationIntangible Assets, NetWeighted Average Remaining Useful Life (in years)
Amortizing intangible assets
Acquired developed technology$20,708 $(13,024)$7,684 2.09
Customer relationships66,591 (15,771)50,820 4.58
Trade name30 (30)— 0
Non-compete agreement2,402 (681)1,721 3.58
Indefinite life intangible assets
Domain name250 — 250 N/A
Licenses350 — 350 N/A
Crypto assets held316,094 — 316,094 N/A
Total$406,425 $(29,506)$376,919 
Schedule of finite-lived intangible assets, future amortization expense
The expected future amortization expense for intangible assets other than IPR&D as of March 31, 2021 is as follows (in thousands):
2021 (for the remainder of)$22,292 
202228,536 
202322,604 
202411,346 
20256,454 
Thereafter— 
Total amortization expense$91,232 
v3.21.1
PREPAID EXPENSES AND OTHER ASSETS (Tables)
 3 Months Ended
Mar. 31, 2021
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):
March 31,December 31,
20212020
Prepaid expenses and other current assets
Prepaid expenses$33,092 $36,218 
Warrant to purchase crypto assets18,809 2,575 
Other3,761 717 
Total prepaid expenses and other current assets$55,662 $39,510 
Other non-current assets
Equity method investments$1,056 $2,000 
Strategic investments34,921 26,146 
Deferred tax assets16,175 20,807 
Deposits(1)
89,528 68,287 
Total other non-current assets$141,680 $117,240 
__________________
(1)     Deposits represent amounts maintained with payments processors and financial institutions as part of the Company’s regular business operations.
Schedule of other investments accounted for under the measurement alternative The components of other investments accounted for under the measurement alternative included in the table above are presented below (in thousands):
March 31,December 31,
20212020
Carrying amount, beginning of period$26,146 $15,599 
Net additions9,438 9,687 
Upward adjustments1,387 1,307 
Previously held interest in Bison Trails (see Note 3)(2,000)— 
Impairments and downward adjustments(50)(447)
Carrying amount, end of period$34,921 $26,146 
v3.21.1
ACCOUNTS PAYABLE AND ACCRUED EXPENSES (Tables)
 3 Months Ended
Mar. 31, 2021
Payables and Accruals [Abstract]  
Schedule of accounts payable and accrued expenses
Accounts payable and accrued expenses consisted of the following (in thousands):
March 31,December 31,
20212020
Accounts payable$15,858 $12,031 
Accrued expenses68,913 33,987 
Accrued payroll and payroll related32,010 23,403 
Income taxes payable244,291 5,805 
Other payables12,883 9,885 
Total accounts payable and accrued expenses$373,955 $85,111 
v3.21.1
DERIVATIVES (Tables)
 3 Months Ended
Mar. 31, 2021
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of the notional amount of derivative contracts outstanding
The following table summarizes the notional amount of derivative contracts outstanding, in native units.
March 31,December 31,
20212020
Crypto asset borrowings with embedded derivatives
9,105 BTC
9,305 BTC
5,000 ETH
3,000 ETH
1,500,000 XRP
Warrant to purchase crypto assets
800,000 UNI
800,000 UNI
588,235 DDX
The following tables summarize information on derivative assets and liabilities that are reflected in the Company’s consolidated balance sheets, by accounting designation (in thousands):
Gross derivative assetsGross derivative liabilities
March 31, 2021Not designated as hedgesDesignated as hedgesTotal derivative assetsNet derivative assetsNot designated as hedgesDesignated as hedgesTotal derivative liabilitiesNet derivative liabilities
Crypto borrowings with embedded derivatives$— $— $— $— $— $394,491 $394,491 $394,491 
Warrant to purchase crypto assets18,809 — 18,809 18,809 — — — — 
Total fair value of derivative assets and liabilities$18,809 $— $18,809 $18,809 $— $394,491 $394,491 $394,491 
Gross derivative assetsGross derivative liabilities
December 31, 2020Not designated as hedgesDesignated as hedgesTotal derivative assetsNet derivative assetsNot designated as hedgesDesignated as hedgesTotal derivative liabilitiesNet derivative liabilities
Crypto borrowings with embedded derivatives$— $— $— $— $12,696 $114,395 $127,091 $127,091 
Warrant to purchase crypto assets2,575 — 2,575 2,575 — — — — 
Total fair value of derivative assets and liabilities$2,575 $— $2,575 $2,575 $12,696 $114,395 $127,091 $127,091 
The following amounts were recorded in the consolidated balance sheets related to certain cumulative fair value hedge basis adjustments that are expected to reverse through the consolidated statements of operations in future periods as an adjustment to other operating expense (in thousands):
Cumulative amount of fair value hedging adjustments included in the carrying amount of hedged items
March 31, 2021Carrying amount of the hedged itemsActive hedging relationshipsDiscontinued hedging relationshipsTotal
Assets$518,225 $370,617 $— $370,617 
Liabilities— — — — 
Cumulative amount of fair value hedging adjustments included in the carrying amount of hedged items
December 31, 2020Carrying amount of the hedged itemsActive hedging relationshipsDiscontinued hedging relationshipsTotal
Assets$247,735 $113,102 $— $113,102 
Liabilities— — — — 
Schedule of gains (losses) recorded in income The following tables present derivative instruments used in fair value hedge accounting relationships, as well as pre-tax gains (losses) recorded on such derivatives and the related hedged items (in thousands):
Gains (losses) recorded in income
Three months ended March 31, 2021DerivativesHedged itemsIncome statement impact
Crypto borrowings with embedded derivatives$(267,400)$258,124 $(9,276)
Gains (losses) recorded in income
Three months ended March 31, 2020DerivativesHedged itemsIncome statement impact
Crypto borrowings with embedded derivatives$— $— $— 
v3.21.1
FAIR VALUE MEASUREMENTS (Tables)
 3 Months Ended
Mar. 31, 2021
Fair Value Disclosures [Abstract]  
Schedule of fair value of assets and liabilities
The following table sets forth by level, within the fair value hierarchy, the Company’s assets and liabilities measured and recorded at fair value on a recurring basis (in thousands):
March 31, 2021December 31, 2020
Level 1Level 2Level 3TotalLevel 1Level 2Level 3Total
Assets
Cash and cash equivalents(1)
$701,511 $— $— $701,511 $212,818 $— $— $212,818 
Customer custodial funds(2)
2,721,499 — — 2,721,499 1,171,274 — — 1,171,274 
Crypto assets held(3)
— 518,225 — 518,225 — 247,735 — 247,735 
Derivative assets(4)
— — 18,809 18,809 — — 2,575 2,575 
Total assets$3,423,010 $518,225 $18,809 $3,960,044 $1,384,092 $247,735 $2,575 $1,634,402 
Liabilities
Crypto asset borrowings(5)
$— $394,491 $— $394,491 $— $127,091 $— $127,091 
Total liabilities$— $394,491 $— $394,491 $— $127,091 $— $127,091 
__________________
(1)Excludes corporate cash of $1,281.8 million and $849.0 million held in deposit at financial institutions and crypto asset trading venues and not measured and recorded at fair value as of March 31, 2021 and December 31, 2020, respectively.
(2)Excludes customer custodial funds of $3,570.3 million and $2,592.1 million held in deposit at financial institutions and not measured and recorded at fair value as of March 31, 2021 and December 31, 2020, respectively.
(3)Includes crypto assets held that have been designated as hedged items in fair value hedges and excludes crypto assets of $133.1 million and $68.4 million held at cost as of March 31, 2021 and December 31, 2020, respectively.
(4)Represents warrants to purchase crypto assets, which are included in prepaid expenses and other current assets in the consolidated balance sheets.
(5)Excludes crypto asset borrowings of $149.3 million and $144.2 million, representing the host contract which is not measured and recorded at fair value as of March 31, 2021 and December 31, 2020, respectively.
Schedule of assets measured at fair value on a recurring basis
The following table presents a reconciliation of the derivative assets measured at fair value on a recurring basis using significant unobservable inputs (Level 3) (in thousands):
Balance as of January 1, 2021$2,575
Fair value adjustment16,234
Balance as of March 31, 2021$18,809
Schedule of significant unobservable inputs The following significant unobservable inputs were used:
March 31, 2021
Discount rate
0.01% - 0.15%
Historical volatility of comparable crypto assets
105% - 175%
v3.21.1
CONVERTIBLE PREFERRED STOCK (Tables)
 3 Months Ended
Mar. 31, 2021
Temporary Equity Disclosure [Abstract]  
Schedule of convertible preferred stock
A summary of the Company’s authorized, issued, and outstanding shares of convertible preferred stock was as follows (in thousands, except per share data):
As of March 31, 2021
Shares AuthorizedShares Issued and OutstandingOriginal Issue Price per ShareLiquidation PreferenceCarrying Value
FF Preferred5,739 5,739 $— $— $11 
Series A30,929 27,232 0.19721 5,371 4,923 
Series B25,416 21,831 1.00676 21,978 19,228 
Series C32,542 31,620 2.76488 87,426 83,047 
Series D17,471 17,428 8.25390 143,850 135,383 
Series E14,508 8,557 36.19220 309,695 309,445 
126,605 112,407 $568,320 $552,037 
As of December 31, 2020
Shares AuthorizedShares Issued and OutstandingOriginal Issue Price per ShareLiquidation PreferenceCarrying Value
FF Preferred5,739 5,739 $— $— $11 
Series A30,929 27,349 0.19721 5,394 4,946 
Series B25,416 21,831 1.00676 21,978 19,228 
Series C32,542 31,656 2.76488 87,525 83,146 
Series D17,471 17,471 8.25390 144,205 135,738 
Series E14,508 8,832 36.19220 319,648 319,398 
126,605 112,878 $578,750 $562,467 
Schedule of change in convertible preferred stock per class outstanding
The change in the number of outstanding shares of convertible preferred stock per class was as follows (in thousands):
Series FFSeries ASeries BSeries CSeries DSeries E
Balance at January 1, 20215,739 27,349 21,831 31,656 17,471 8,832 
Conversion to Class A common stock— (117)— (36)(43)(275)
Balance at March 31, 20215,739 27,232 21,831 31,620 17,428 8,557 
v3.21.1
COMMON STOCK (Tables)
 3 Months Ended
Mar. 31, 2021
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):
March 31,December 31,
20212020
Class A common stock
Conversion of Series E convertible preferred stock8,557 8,832 
Options issued and outstanding under 2013 Plan2,831 3,550 
Options issued and outstanding under 2019 Plan34,940 37,232 
RSUs issued and outstanding under 2019 Plan7,515 3,766 
Shares available for future issuance under the 2019 Plan5,077 2,193 
Replacement options issued and outstanding from Tagomi acquisition18 32 
Replacement options issued and outstanding from Bison Trails acquisition355 — 
Exercise and conversion of outstanding warrant— 4 
Shares available for future issuance of warrants2,296 2,296 
Total Class A common stock shares reserved61,589 57,905 
Class B common stock
Conversion of FF Preferred and Series A, B, C, and D convertible preferred stock103,850 104,046 
Options issued and outstanding under 2013 Plan16,858 22,442 
Exercise and conversion of outstanding warrant— 408 
Total Class B common stock shares reserved120,708 126,896 
v3.21.1
STOCK-BASED COMPENSATION (Tables)
 3 Months Ended
Mar. 31, 2021
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, 202163,256 $14.84 8.17$2,527,396 
Granted470 3.45 
Exercised(7,918)7.58 
Forfeited and cancelled(806)19.86 
Balance at March 31, 202155,002 15.72 8.1015,842,278 
Vested and exercisable at March 31, 202121,518 7.75 6.696,369,435 
Vested and expected to vest at March 31, 202145,708 14.15 7.8513,237,287 
Schedule of activity of RSUs outstanding
Activity of RSUs outstanding under the Plan are as follows (in thousands, except per share data):
Number of sharesWeighted-
Average
Grant
Date Fair
Value Per Share
Balance at January 1, 20213,766 $54.80 
Granted3,960 211.92
Vested(204)54.80 
Forfeited and cancelled(41)188.60 
Balance at March 31, 20217,481 137.25 
Schedule of activity of restricted Class A common stock Activity of restricted Class A common stock are as follows (in thousands, except per share data):
Number of sharesWeighted-
Average
Grant
Date Fair
Value Per Share
Balance at January 1, 2021824 $23.46 
Granted1,319 171.85
Vested— — 
Forfeited and cancelled— — 
Balance at March 31, 20212,143 114.80 
Schedule of stock based compensation
Stock based compensation is included in the following components of expenses on the accompanying consolidated statements of operations (in thousands):
Three Months Ended March 31,
20212020
Technology and development$73,256 $4,882 
Sales and marketing3,531 176 
General and administrative27,841 4,122 
Total$104,628 $9,180 
v3.21.1
NET INCOME PER SHARE (Tables)
 3 Months Ended
Mar. 31, 2021
Earnings Per Share [Abstract]  
Schedule of computation of net income per share
The computation of net income per share is as follows (in thousands, except per share amounts):
Three Months Ended March 31,
20212020
Basic net income per share:
Numerator
Net income$771,463 $31,973 
Less: Income allocated to participating securities(469,567)(31,973)
Net income attributable to common stockholders, basic$301,896 $— 
Denominator
Weighted-average shares of common stock used to compute net income per share attributable to common stockholders, basic79,373 66,957 
Net income per share attributable to common stockholders, basic$3.80 $— 
Diluted net income per share:
Numerator
Net income$771,463 $31,973 
Less: Income allocated to participating securities(383,744)(31,973)
Net income attributable to common stockholders - diluted$387,719 $— 
Denominator
Weighted-average shares of common stock used to compute net income per share attributable to common stockholders, basic79,373 66,957 
Weighted-average effect of potentially dilutive securities:
Stock options44,492 — 
RSUs2,841 — 
Warrants290 — 
Weighted-average shares of common stock used to compute net income per share attributable to common stockholders, diluted126,996 66,957 
Net income per share attributable to common stockholders, diluted$3.05 $— 
Schedule of potentially dilutive shares
The following potentially dilutive shares were not included in the calculation of diluted shares outstanding as the effect would have been anti-dilutive (in thousands):
Three Months Ended March 31,
20212020
Employee stock options192 41,408 
RSUs2,331 — 
Warrants— 408 
Contingent consideration recognized in asset acquisition— 691 
Total2,523 42,507 
v3.21.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2021
Dec. 31, 2020
Concentration Risk [Line Items]    
USDC held $ 102,118 $ 48,938
Accounts, Loans, and Financing Receivable | Customer Concentration Risk    
Concentration Risk [Line Items]    
Accounts receivable   45,000
Accounts Receivable, Post Trade Credit | Customer Concentration Risk    
Concentration Risk [Line Items]    
Accounts receivable   $ 20,500
Trade Accounts, Loans, and Financing Receivable | Third-Party Vendor Concentration Risk | Payment Processor One    
Concentration Risk [Line Items]    
Concentration risk, percentage 12.00% 7.00%
Trade Accounts, Loans, and Financing Receivable | Third-Party Vendor Concentration Risk | Payment Processor Two    
Concentration Risk [Line Items]    
Concentration risk, percentage 9.00%  
Trade Accounts, Loans, and Financing Receivable | Third-Party Vendor Concentration Risk | Bank Partner Account One    
Concentration Risk [Line Items]    
Concentration risk, percentage 9.00% 8.00%
Trade Accounts, Loans, and Financing Receivable | Third-Party Vendor Concentration Risk | Bank Partner Account Two    
Concentration Risk [Line Items]    
Concentration risk, percentage   7.00%
v3.21.1
ACQUISITIONS - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended
Feb. 08, 2021
Jul. 31, 2020
Mar. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Business Acquisition [Line Items]          
Goodwill     $ 481,379 $ 77,212 $ 54,696
Bison Trails Co.          
Business Acquisition [Line Items]          
Gain on remeasurement     $ 8,800    
Total purchase consideration $ 457,268        
Holdback release term 18 months        
Total acquisition costs $ 3,700        
Goodwill $ 404,167        
Bison Trails Co. | Class A common stock          
Business Acquisition [Line Items]          
Number of shares included in purchase consideration 496,434        
Tagomi Holdings, Inc.          
Business Acquisition [Line Items]          
Purchase consideration   $ 41,792      
Total acquisition costs   1,100      
Goodwill   $ 22,516      
Number of shares issued to related party   264,527      
v3.21.1
ACQUISITIONS - Schedule of purchase consideration (Details) - Bison Trails Co.
$ in Thousands
Feb. 08, 2021
USD ($)
Business Acquisition [Line Items]  
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
v3.21.1
ACQUISITIONS - Schedule of net assets acquired (Details) - USD ($)
$ in Thousands
Mar. 31, 2021
Feb. 08, 2021
Dec. 31, 2020
Dec. 31, 2019
Business Acquisition [Line Items]        
Goodwill $ 481,379   $ 77,212 $ 54,696
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   39,100    
Goodwill   404,167    
Other non-current assets   1,221    
Lease right-of-use assets   808    
Total assets   465,119    
Accounts payable and accrued expenses   2,446    
Lease liabilities   808    
Other liabilities   4,597    
Total liabilities   7,851    
Net assets acquired   $ 457,268    
v3.21.1
ACQUISITIONS - Schedule of finite-lived intangible assets acquired (Details) - USD ($)
$ in Thousands
Feb. 08, 2021
Jul. 31, 2020
Developed technology    
Acquired Finite-Lived Intangible Assets [Line Items]    
Useful Life at Acquisition (in years) 3 years 3 years
User base    
Acquired Finite-Lived Intangible Assets [Line Items]    
Useful Life at Acquisition (in years) 3 years  
Bison Trails Co.    
Acquired Finite-Lived Intangible Assets [Line Items]    
Intangible assets $ 39,100  
Bison Trails Co. | Developed technology    
Acquired Finite-Lived Intangible Assets [Line Items]    
Intangible assets 36,000  
Bison Trails Co. | In process research and development ("IPR&D")    
Acquired Finite-Lived Intangible Assets [Line Items]    
Intangible assets 1,200  
Bison Trails Co. | User base    
Acquired Finite-Lived Intangible Assets [Line Items]    
Intangible assets $ 1,900  
v3.21.1
ACQUISITIONS - 2020 Schedule of purchase consideration (Details) - Tagomi Holdings, Inc.
$ in Thousands
Jul. 31, 2020
USD ($)
Business Acquisition [Line Items]  
Common stock of the Company $ 30,589
Replacement of Tagomi options and warrants 760
Cash 1,906
Settlement of pre-existing receivable 8,537
Total purchase consideration $ 41,792
v3.21.1
ACQUISITIONS - 2020 Schedule of assets acquired and liabilities assumed (Details) - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Jul. 31, 2020
Dec. 31, 2019
Business Acquisition [Line Items]        
Goodwill $ 481,379 $ 77,212   $ 54,696
Tagomi Holdings, Inc.        
Business Acquisition [Line Items]        
Cash and cash equivalents     $ 13,777  
Customer custodial funds     19,837  
Crypto assets held     5,687  
Accounts and loans receivable, net of allowance     5,795  
Prepaid expenses and other current assets     633  
Intangible assets     7,350  
Goodwill     22,516  
Other non-current assets     1,611  
Total assets     77,206  
Custodial funds due to customers     20,787  
Accounts payable and accrued expenses     5,953  
Crypto borrowings     8,674  
Total liabilities     35,414  
Net assets acquired     $ 41,792  
v3.21.1
ACQUISITIONS - 2020 Schedule of finite lived and indefinite lived intangible assets (Details) - USD ($)
$ in Thousands
Feb. 08, 2021
Jul. 31, 2020
Developed technology    
Acquired Finite-Lived Intangible Assets [Line Items]    
Useful Life at Acquisition (in years) 3 years 3 years
Customer relationships    
Acquired Finite-Lived Intangible Assets [Line Items]    
Useful Life at Acquisition (in years)   5 years
Tagomi Holdings, Inc.    
Acquired Finite-Lived Intangible Assets [Line Items]    
Intangible assets   $ 7,350
Tagomi Holdings, Inc. | Developed technology    
Acquired Finite-Lived Intangible Assets [Line Items]    
Intangible assets   6,600
Tagomi Holdings, Inc. | Customer relationships    
Acquired Finite-Lived Intangible Assets [Line Items]    
Intangible assets   400
Tagomi Holdings, Inc. | Licenses    
Acquired Finite-Lived Intangible Assets [Line Items]    
Intangible assets   $ 350
v3.21.1
REVENUE - Schedule of revenue disaggregated by source (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Disaggregation of Revenue [Line Items]    
Interest income $ 3,320 $ 2,559
Total revenue 1,801,112 190,630
Transaction and Subscription and services revenue    
Disaggregation of Revenue [Line Items]    
Total revenue 1,596,981 179,082
Transaction revenue    
Disaggregation of Revenue [Line Items]    
Revenue 1,540,580 171,991
Retail, net    
Disaggregation of Revenue [Line Items]    
Revenue 1,455,171 162,002
Institutional    
Disaggregation of Revenue [Line Items]    
Revenue 85,409 9,989
Subscription and services revenue    
Disaggregation of Revenue [Line Items]    
Revenue 56,401 7,091
Custodial fee revenue    
Disaggregation of Revenue [Line Items]    
Revenue 23,451 2,712
Staking revenue    
Disaggregation of Revenue [Line Items]    
Revenue 10,294 1,449
Earn campaign revenue    
Disaggregation of Revenue [Line Items]    
Revenue 11,111 0
Other subscription and services revenue    
Disaggregation of Revenue [Line Items]    
Revenue 8,225 371
Other Crypto Sales    
Disaggregation of Revenue [Line Items]    
Total revenue 204,131 11,548
Crypto asset sales revenue    
Disaggregation of Revenue [Line Items]    
Revenue 203,799 9,860
Corporate interest income    
Disaggregation of Revenue [Line Items]    
Interest income $ 332 $ 1,688
v3.21.1
REVENUE - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Dec. 31, 2020
Disaggregation of Revenue [Line Items]      
Recognized revenue with related parties $ 5.3 $ 0.6  
Amounts receivable from related parties 2.4   $ 0.6
Custodial fee revenue      
Disaggregation of Revenue [Line Items]      
Amounts receivable from customers, net of allowance 12.9   $ 4.4
Crypto asset sales revenue      
Disaggregation of Revenue [Line Items]      
Cost of crypto assets used in fulfilling customer transactions $ 186.3 $ 10.2  
v3.21.1
REVENUE - Schedule of revenue disaggregated by geographic area (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Disaggregation of Revenue [Line Items]    
Total revenue $ 1,801,112 $ 190,630
United States    
Disaggregation of Revenue [Line Items]    
Total revenue 1,465,436 142,187
Rest of the World    
Disaggregation of Revenue [Line Items]    
Total revenue $ 335,676 $ 48,443
v3.21.1
ACCOUNTS AND LOANS RECEIVABLE - Schedule of accounts and loans receivable (Details) - USD ($)
Mar. 31, 2021
Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Customer funds receivable $ 33,570,000 $ 67,926,000
In-transit customer receivables 87,416,000 90,571,000
Custodial fee revenue receivable 13,059,000 4,636,000
Loans receivable 53,046,000 6,790,000
Interest and other receivables 26,400,000 21,709,000
Allowance for doubtful accounts 4,663,000 2,161,000
Accounts and loans receivable, net of allowance 208,828,000 189,471,000
Loans receivable, allowance for credit loss 0 0
Unlikely to be Collected Financing Receivable    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Allowance for doubtful accounts $ 3,300,000 $ 1,300,000
v3.21.1
ACCOUNTS AND LOANS RECEIVABLE - Narrative (Details) - USD ($)
Mar. 31, 2021
Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans receivable past due $ 53,046,000 $ 6,790,000
Financial Asset, Past Due    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans receivable past due 0 0
Cash and USDC Loans Receivable    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Loans receivable 53,000,000 6,800,000
Interest receivable 200,000 $ 40,000.00
Allowance recorded against loans receivable $ 0  
v3.21.1
GOODWILL AND INTANGIBLE ASSETS - Schedule of goodwill (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2021
Dec. 31, 2020
Goodwill [Roll Forward]    
Balance, beginning of period $ 77,212 $ 54,696
Additions due to acquisitions 404,167 22,516
Balance, end of period $ 481,379 $ 77,212
v3.21.1
GOODWILL AND INTANGIBLE ASSETS - Narrative (Details) - USD ($)
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Dec. 31, 2020
Dec. 31, 2019
Goodwill and Intangible Assets Disclosure [Abstract]        
Accumulated impairment $ 0   $ 0 $ 0
Amortization expense of intangible assets 6,900,000 $ 3,900,000    
Impairment expense $ 800,000 $ 300,000    
v3.21.1
GOODWILL AND INTANGIBLE ASSETS - Schedule of intangible assets (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2021
Dec. 31, 2020
Finite-Lived Intangible Assets [Line Items]    
Accumulated Amortization $ (36,399) $ (29,506)
Total amortization expense 91,232  
Intangible Assets, Net (Excluding Goodwill) [Abstract]    
Total intangible assets, gross carrying amount 780,787 406,425
Total accumulated amortization (36,399) (29,506)
Intangible assets, net 744,388 376,919
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 350 350
Crypto assets held    
Indefinite-lived Intangible Assets [Line Items]    
Indefinite lived intangible assets 651,356 316,094
Acquired developed technology    
Finite-Lived Intangible Assets [Line Items]    
Intangible assets, gross carrying amount 56,708 20,708
Accumulated Amortization (16,886) (13,024)
Total amortization expense $ 39,822 $ 7,684
Weighted Average Remaining Useful Life (in years) 2 years 4 months 13 days 2 years 1 month 2 days
Intangible Assets, Net (Excluding Goodwill) [Abstract]    
Total accumulated amortization $ (16,886) $ (13,024)
User base    
Finite-Lived Intangible Assets [Line Items]    
Intangible assets, gross carrying amount 1,900  
Accumulated Amortization (123)  
Total amortization expense $ 1,777  
Weighted Average Remaining Useful Life (in years) 2 years 5 months 1 day  
Intangible Assets, Net (Excluding Goodwill) [Abstract]    
Total accumulated amortization $ (123)  
Customer relationships    
Finite-Lived Intangible Assets [Line Items]    
Intangible assets, gross carrying amount 66,591 66,591
Accumulated Amortization (18,559) (15,771)
Total amortization expense $ 48,032 $ 50,820
Weighted Average Remaining Useful Life (in years) 4 years 3 months 29 days 4 years 6 months 29 days
Intangible Assets, Net (Excluding Goodwill) [Abstract]    
Total accumulated amortization $ (18,559) $ (15,771)
Trade name    
Finite-Lived Intangible Assets [Line Items]    
Intangible assets, gross carrying amount 30 30
Accumulated Amortization (30) (30)
Total amortization expense $ 0 $ 0
Weighted Average Remaining Useful Life (in years) 0 years 0 years
Intangible Assets, Net (Excluding Goodwill) [Abstract]    
Total accumulated amortization $ (30) $ (30)
Non-compete agreement    
Finite-Lived Intangible Assets [Line Items]    
Intangible assets, gross carrying amount 2,402 2,402
Accumulated Amortization (801) (681)
Total amortization expense $ 1,601 $ 1,721
Weighted Average Remaining Useful Life (in years) 3 years 4 months 2 days 3 years 6 months 29 days
Intangible Assets, Net (Excluding Goodwill) [Abstract]    
Total accumulated amortization $ (801) $ (681)
In process research and development    
Finite-Lived Intangible Assets [Line Items]    
Intangible assets, gross carrying amount 1,200  
Total amortization expense $ 1,200  
In process research and development | Pro Forma    
Finite-Lived Intangible Assets [Line Items]    
Finite-lived intangible asset useful life 3 years  
v3.21.1
GOODWILL AND INTANGIBLE ASSETS - Schedule of future amortization expense (Details)
$ in Thousands
Mar. 31, 2021
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]  
2021 (for the remainder of) $ 22,292
2022 28,536
2023 22,604
2024 11,346
2025 6,454
Thereafter 0
Total amortization expense $ 91,232
v3.21.1
PREPAID EXPENSES AND OTHER ASSETS - Schedule of prepaid expenses and other current and non-current assets (Details) - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Dec. 31, 2019
Prepaid expenses and other current assets      
Prepaid expenses $ 33,092 $ 36,218  
Warrant to purchase crypto assets 18,809 2,575  
Other 3,761 717  
Total prepaid expenses and other current assets 55,662 39,510  
Other non-current assets      
Equity method investments 1,056 2,000  
Strategic investments 34,921 26,146 $ 15,599
Deferred tax assets 16,175 20,807  
Deposits 89,528 68,287  
Total other non-current assets $ 141,680 $ 117,240  
v3.21.1
PREPAID EXPENSES AND OTHER ASSETS - Narrative (Details) - USD ($)
$ in Millions
Mar. 31, 2021
Aug. 31, 2019
Schedule of Equity Method Investments [Line Items]    
Upward adjustments due to remeasurement of investments $ 2.9  
Impairments and downward adjustments due to remeasurement of investments $ 2.6  
Centre Consortium LLC    
Schedule of Equity Method Investments [Line Items]    
Ownership percentage   50.00%
v3.21.1
PREPAID EXPENSES AND OTHER ASSETS - Schedule of other investments accounted for under the measurement alternative (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2021
Dec. 31, 2020
Equity Securities without Readily Determinable Fair Value [Roll Forward]    
Carrying amount, beginning of period $ 26,146 $ 15,599
Net additions 9,438 9,687
Upward adjustments 1,387 1,307
Previously held interest in Bison Trails (see Note 3) (2,000) 0
Impairments and downward adjustments (50) (447)
Carrying amount, end of period $ 34,921 $ 26,146
v3.21.1
ACCOUNTS PAYABLE AND ACCRUED EXPENSES - Schedule of accounts payable and accrued expenses (Details) - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Payables and Accruals [Abstract]    
Accounts payable $ 15,858 $ 12,031
Accrued expenses 68,913 33,987
Accrued payroll and payroll related 32,010 23,403
Income taxes payable 244,291 5,805
Other payables 12,883 9,885
Accounts payable and accrued expenses $ 373,955 $ 85,111
v3.21.1
DERIVATIVES - Schedule of notional amount of derivative contracts outstanding (Details) - Not Designated as Hedging Instrument
ethereum in Thousands, xRP in Millions, uniswapToken in Millions
Mar. 31, 2021
bitcoin
Mar. 31, 2021
ethereum
Mar. 31, 2021
uniswapToken
Mar. 31, 2021
derivaDexToken
Dec. 31, 2020
bitcoin
Dec. 31, 2020
ethereum
Dec. 31, 2020
xRP
Dec. 31, 2020
uniswapToken
Crypto asset borrowings with embedded derivatives                
Derivative [Line Items]                
Notional amount of derivative contracts outstanding in native units 9,105 5     9,305 3 1.5  
Warrant to purchase crypto assets                
Derivative [Line Items]                
Notional amount of derivative contracts outstanding in native units     0.8 588,235       0.8
v3.21.1
DERIVATIVES - Schedule of derivative assets and liabilities (Details) - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross derivative assets $ 18,809 $ 2,575
Net derivative assets 18,809 2,575
Gross derivative liabilities 394,491 127,091
Net derivative liabilities 394,491 127,091
Crypto borrowings with embedded derivatives    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross derivative assets 0 0
Net derivative assets 0 0
Gross derivative liabilities 394,491 127,091
Net derivative liabilities 394,491 127,091
Warrant to purchase crypto assets    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross derivative assets 18,809 2,575
Net derivative assets 18,809 2,575
Gross derivative liabilities 0 0
Net derivative liabilities 0 0
Not Designated as Hedging Instrument    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross derivative assets 18,809 2,575
Gross derivative liabilities 0 12,696
Not Designated as Hedging Instrument | Crypto borrowings with embedded derivatives    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross derivative assets 0 0
Gross derivative liabilities 0 12,696
Not Designated as Hedging Instrument | Warrant to purchase crypto assets    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross derivative assets 18,809 2,575
Gross derivative liabilities 0 0
Designated as Hedging Instrument    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross derivative assets 0 0
Gross derivative liabilities 394,491 114,395
Designated as Hedging Instrument | Crypto borrowings with embedded derivatives    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross derivative assets 0 0
Gross derivative liabilities 394,491 114,395
Designated as Hedging Instrument | Warrant to purchase crypto assets    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross derivative assets 0 0
Gross derivative liabilities $ 0 $ 0
v3.21.1
DERIVATIVES - Schedule of gains (losses) recorded in income (Details) - Crypto asset borrowings with embedded derivatives - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Derivative [Line Items]    
Derivatives $ (267,400) $ 0
Hedged items 258,124 0
Income statement impact $ (9,276) $ 0
v3.21.1
DERIVATIVES - Schedule of cumulative fair value hedge basis adjustments (Details) - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]    
Carrying amount of the hedged items, assets $ 518,225 $ 247,735
Cumulative amount of fair value hedging adjustments included in the carrying amount of hedged items, active hedging relationships, assets 370,617 113,102
Cumulative amount of fair value hedging adjustments included in the carrying amount of hedged items, discontinued hedging relationships, assets 0 0
Cumulative amount of fair value hedging adjustments included in the carrying amount of hedged items, total, assets 370,617 113,102
Carrying amount of the hedged items, liabilities 0 0
Cumulative amount of fair value hedging adjustments included in the carrying amount of hedged items, active hedging relationships, liabilities 0 0
Cumulative amount of fair value hedging adjustments included in the carrying amount of hedged items, discontinued hedging relationships, liabilities 0 0
Cumulative amount of fair value hedging adjustments included in the carrying amount of hedged items, total, liabilities $ 0 $ 0
v3.21.1
DERIVATIVES - Narrative (Details) - USD ($)
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Dec. 31, 2020
Derivative [Line Items]      
Carrying value of the outstanding host contract $ 149,300,000   $ 144,200,000
Fair value of the embedded derivative liabilities 394,500,000   $ 127,100,000
Borrowing fees paid in crypto assets $ 4,300,000 $ 0  
Minimum      
Derivative [Line Items]      
Borrowing rate on derivatives 1.70%    
Maximum      
Derivative [Line Items]      
Borrowing rate on derivatives 7.00%    
v3.21.1
FAIR VALUE MEASUREMENTS (Details) - USD ($)
$ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Mar. 31, 2020
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash and cash equivalents $ 1,983,318 $ 1,061,850 $ 636,324
Derivative assets 18,809 2,575  
Crypto asset borrowings 394,491 127,091  
Customer custodial funds excluded from fair value assets 3,570,300 2,592,100  
Crypto assets held at cost excluded from fair value assets 133,100 68,400  
Carrying value of the outstanding host contract 149,300 144,200  
Held in Deposit at Financial Institutions and Crypto Asset Trading Venues      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash and cash equivalents 1,281,800 849,000  
Fair Value, Recurring      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash and cash equivalents 701,511 212,818  
Customer custodial funds 2,721,499 1,171,274  
Crypto assets held 518,225 247,735  
Derivative assets 18,809 2,575  
Total assets 3,960,044 1,634,402  
Crypto asset borrowings 394,491 127,091  
Total liabilities 394,491 127,091  
Level 1 | Fair Value, Recurring      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash and cash equivalents 701,511 212,818  
Customer custodial funds 2,721,499 1,171,274  
Crypto assets held 0 0  
Derivative assets 0 0  
Total assets 3,423,010 1,384,092  
Crypto asset borrowings 0 0  
Total liabilities 0 0  
Level 2 | Fair Value, Recurring      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash and cash equivalents 0 0  
Customer custodial funds 0 0  
Crypto assets held 518,225 247,735  
Derivative assets 0 0  
Total assets 518,225 247,735  
Crypto asset borrowings 394,491 127,091  
Total liabilities 394,491 127,091  
Level 3 | Fair Value, Recurring      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash and cash equivalents 0 0  
Customer custodial funds 0 0  
Crypto assets held 0 0  
Derivative assets 18,809 2,575  
Total assets 18,809 2,575  
Crypto asset borrowings 0 0  
Total liabilities $ 0 $ 0  
v3.21.1
FAIR VALUE MEASUREMENTS - Schedule of assets measured at fair value on a recurring basis (Details)
$ in Thousands
 3 Months Ended
Mar. 31, 2021
USD ($)
Fair Value, Net Derivative Asset (Liability) Measured on Recurring Basis, Unobservable Input Reconciliation [Roll Forward]  
Balance as of January 1, 2021 $ 2,575
Fair value adjustment 16,234
Balance as of March 31, 2021 $ 18,809
v3.21.1
FAIR VALUE MEASUREMENTS - Narrative (Details)
 3 Months Ended
Mar. 31, 2021
Minimum  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Vesting period of warrants 1 year
Maximum  
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]  
Vesting period of warrants 4 years
v3.21.1
FAIR VALUE MEASUREMENTS - Schedule of significant unobservable inputs (Details) - Warrant to purchase crypto assets - Level 3
Mar. 31, 2021
Minimum | Discount rate  
Fair Value Measurement Inputs and Valuation Techniques [Line Items]  
Derivative asset, measurement input 0.0001
Minimum | Historical volatility of comparable crypto assets  
Fair Value Measurement Inputs and Valuation Techniques [Line Items]  
Derivative asset, measurement input 1.05
Maximum | Discount rate  
Fair Value Measurement Inputs and Valuation Techniques [Line Items]  
Derivative asset, measurement input 0.0015
Maximum | Historical volatility of comparable crypto assets  
Fair Value Measurement Inputs and Valuation Techniques [Line Items]  
Derivative asset, measurement input 1.75
v3.21.1
CONVERTIBLE PREFERRED STOCK (Details) - USD ($)
$ / shares in Units, $ in Thousands
Mar. 31, 2021
Dec. 31, 2020
Temporary Equity [Line Items]    
Shares Authorized (in shares) 126,605,000 126,605,000
Shares Issued (in shares) 112,407,000 112,878,000
Shares Outstanding (in shares) 112,407,000 112,878,000
Liquidation Preference $ 568,320 $ 578,750
Carrying Value $ 552,037 $ 562,467
FF Preferred    
Temporary Equity [Line Items]    
Shares Authorized (in shares) 5,739,000 5,739,000
Shares Issued (in shares) 5,739,000 5,739,000
Shares Outstanding (in shares) 5,739,000 5,739,000
Original Issue Price per Share (in dollars per share) $ 0 $ 0
Liquidation Preference $ 0 $ 0
Carrying Value $ 11 $ 11
Series A    
Temporary Equity [Line Items]    
Shares Authorized (in shares) 30,929,000 30,929,000
Shares Issued (in shares) 27,232,000 27,349,000
Shares Outstanding (in shares) 27,232,000 27,349,000
Original Issue Price per Share (in dollars per share) $ 0.19721 $ 0.19721
Liquidation Preference $ 5,371 $ 5,394
Carrying Value $ 4,923 $ 4,946
Series B    
Temporary Equity [Line Items]    
Shares Authorized (in shares) 25,416,000 25,416,000
Shares Issued (in shares) 21,831,000 21,831,000
Shares Outstanding (in shares) 21,831,000 21,831,000
Original Issue Price per Share (in dollars per share) $ 1.00676 $ 1.00676
Liquidation Preference $ 21,978 $ 21,978
Carrying Value $ 19,228 $ 19,228
Series C    
Temporary Equity [Line Items]    
Shares Authorized (in shares) 32,542,000 32,542,000
Shares Issued (in shares) 31,620,000 31,656,000
Shares Outstanding (in shares) 31,620,000 31,656,000
Original Issue Price per Share (in dollars per share) $ 2.76488 $ 2.76488
Liquidation Preference $ 87,426 $ 87,525
Carrying Value $ 83,047 $ 83,146
Series D    
Temporary Equity [Line Items]    
Shares Authorized (in shares) 17,471,000 17,471,000
Shares Issued (in shares) 17,428,000 17,471,000
Shares Outstanding (in shares) 17,428,000 17,471,000
Original Issue Price per Share (in dollars per share) $ 8.25390 $ 8.25390
Liquidation Preference $ 143,850 $ 144,205
Carrying Value $ 135,383 $ 135,738
Series E    
Temporary Equity [Line Items]    
Shares Authorized (in shares) 14,508,000 14,508,000
Shares Issued (in shares) 8,557,000 8,832,000
Shares Outstanding (in shares) 8,557,000 8,832,000
Original Issue Price per Share (in dollars per share) $ 36.19220 $ 36.19220
Liquidation Preference $ 309,695 $ 319,648
Carrying Value $ 309,445 $ 319,398
v3.21.1
CONVERTIBLE PREFERRED STOCK - Narrative (Details)
$ in Millions
 3 Months Ended
Mar. 31, 2021
USD ($)
Temporary Equity Disclosure [Abstract]  
Share issuance costs incurred $ 0.8
v3.21.1
CONVERTIBLE PREFERRED STOCK - Schedule of change in convertible preferred stock per class (Details)
 3 Months Ended
Mar. 31, 2021
shares
Temporary Equity [Roll Forward]  
Beginning balance (in shares) 112,878,000
Ending balance (in shares) 112,407,000
FF Preferred  
Temporary Equity [Roll Forward]  
Beginning balance (in shares) 5,739,000
Conversion to Class A common stock (in shares) 0
Ending balance (in shares) 5,739,000
Series A  
Temporary Equity [Roll Forward]  
Beginning balance (in shares) 27,349,000
Conversion to Class A common stock (in shares) (117,000)
Ending balance (in shares) 27,232,000
Series B  
Temporary Equity [Roll Forward]  
Beginning balance (in shares) 21,831,000
Conversion to Class A common stock (in shares) 0
Ending balance (in shares) 21,831,000
Series C  
Temporary Equity [Roll Forward]  
Beginning balance (in shares) 31,656,000
Conversion to Class A common stock (in shares) (36,000)
Ending balance (in shares) 31,620,000
Series D  
Temporary Equity [Roll Forward]  
Beginning balance (in shares) 17,471,000
Conversion to Class A common stock (in shares) (43,000)
Ending balance (in shares) 17,428,000
Series E  
Temporary Equity [Roll Forward]  
Beginning balance (in shares) 8,832,000
Conversion to Class A common stock (in shares) (275,000)
Ending balance (in shares) 8,557,000
v3.21.1
COMMON STOCK - Narrative (Details)
Mar. 31, 2021
$ / shares
shares
Dec. 31, 2020
$ / shares
shares
Oct. 01, 2018
vote
board_member
Class of Stock [Line Items]      
Number of elected board members | board_member     2
Common stock, authorized (in shares) | shares 490,413,936    
Common stock, par value (in dollars per share) | $ / shares $ 0.00001    
Class B common stock      
Class of Stock [Line Items]      
Number of votes per share | vote     10
Common stock, authorized (in shares) | shares 208,413,936 208,414,000  
Common stock, par value (in dollars per share) | $ / shares $ 0.00001 $ 0.00001  
Class A common stock      
Class of Stock [Line Items]      
Number of votes per share | vote     1
Common stock, authorized (in shares) | shares 282,000,000 267,640,000  
Common stock, par value (in dollars per share) | $ / shares $ 0.00001 $ 0.00001  
v3.21.1
COMMON STOCK - Schedule of shares reserved for future issuance (Details) - shares
Mar. 31, 2021
Dec. 31, 2020
Class A common stock    
Class of Stock [Line Items]    
Common stock reserved for future issuance (in shares) 61,589,000 57,905,000
Conversion of Series E convertible preferred stock    
Class of Stock [Line Items]    
Common stock reserved for future issuance (in shares) 8,557,000 8,832,000
Options issued and outstanding under 2013 Plan    
Class of Stock [Line Items]    
Common stock reserved for future issuance (in shares) 2,831,000 3,550,000
Options issued and outstanding under 2019 Plan    
Class of Stock [Line Items]    
Common stock reserved for future issuance (in shares) 34,940,000 37,232,000
RSUs issued and outstanding under 2019 Plan    
Class of Stock [Line Items]    
Common stock reserved for future issuance (in shares) 7,515,000 3,766,000
Shares available for future issuance under the 2019 Plan    
Class of Stock [Line Items]    
Common stock reserved for future issuance (in shares) 5,077,000 2,193,000
Replacement options issued and outstanding from Tagomi acquisition    
Class of Stock [Line Items]    
Common stock reserved for future issuance (in shares) 18,000 32,000
Replacement options issued and outstanding from Bison Trails acquisition    
Class of Stock [Line Items]    
Common stock reserved for future issuance (in shares) 355,000 0
Exercise and conversion of outstanding warrant    
Class of Stock [Line Items]    
Common stock reserved for future issuance (in shares) 0 4,000
Shares available for future issuance of warrants    
Class of Stock [Line Items]    
Common stock reserved for future issuance (in shares) 2,296,000 2,296,000
Class B common stock    
Class of Stock [Line Items]    
Common stock reserved for future issuance (in shares) 120,708,000 126,896,000
Conversion of FF Preferred and Series A, B, C, and D convertible preferred stock    
Class of Stock [Line Items]    
Common stock reserved for future issuance (in shares) 103,850,000 104,046,000
Options issued and outstanding under 2013 Plan    
Class of Stock [Line Items]    
Common stock reserved for future issuance (in shares) 16,858,000 22,442,000
Exercise and conversion of outstanding warrant    
Class of Stock [Line Items]    
Common stock reserved for future issuance (in shares) 0 408,000
v3.21.1
STOCK-BASED COMPENSATION - Schedule of stock option activity (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 12 Months Ended
Mar. 31, 2021
Dec. 31, 2020
Options Outstanding    
Balance at January 1, 2021 (in shares) 63,256  
Granted (in shares) 470  
Exercised (in shares) (7,918)  
Forfeited and cancelled (in shares) (806)  
Balance at March 31, 2021 (in shares) 55,002 63,256
Weighted Average Exercise Price per Share    
Options outstanding, weighted average exercise price per share - January 1, 2021 (in dollars per share) $ 14.84  
Options granted, weighted average exercise price per share (in $ per share) 3.45  
Options exercised, weighted average exercise price per share (in $ per share) 7.58  
Options forfeited and cancelled, weighted average exercise price per share (in dollars per share) 19.86  
Options outstanding, weighted average exercise price per share - March 31, 2021 (in dollars per share) $ 15.72 $ 14.84
Stock Option Activity, Additional Disclosures    
Options outstanding, Weighted average remaining contractual term 8 years 1 month 6 days 8 years 2 months 1 day
Options outstanding, Aggregate intrinsic value $ 15,842,278 $ 2,527,396
Options vested and exercisable, Number of options (in shares) 21,518  
Options vested and exercisable , Weighted average exercise price per share (in dollars per share) $ 7.75  
Options vested and exercisable, Weighted average remaining contractual term 6 years 8 months 8 days  
Options vested and exercisable, Aggregate intrinsic value $ 6,369,435  
Options vested and expected to vest, Number of options (in shares) 45,708  
Options vested and expected to vest, Weighted average exercise price per share (in dollars per share) $ 14.15  
Options vested and expected to vest, Weighted average remaining contractual term 7 years 10 months 6 days  
Options vested and expected to vest, Aggregate intrinsic value $ 13,237,287  
v3.21.1
STOCK-BASED COMPENSATION - Narrative (Details)
$ in Millions
 3 Months Ended
Mar. 31, 2021
USD ($)
shares
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Total unrecognized compensation cost related to unvested stock options $ 225.5
Stock options  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized compensation cost, weighted-average period of recognition 2 years 8 months 15 days
Number of shares subject to repurchase | shares 1,290,405
Value of shares related to repurchase $ 24.2
RSUs  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized compensation cost, weighted-average period of recognition 2 years 9 months 21 days
Total unrecognized compensation cost related to unvested RSUs $ 956.2
RSUs | Minimum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Stock based compensation vesting period 2 years
RSUs | Maximum  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Stock based compensation vesting period 4 years
Restricted Stock  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Unrecognized compensation cost, weighted-average period of recognition 2 years 9 months 21 days
Stock based compensation vesting period 3 years
Total unrecognized compensation cost related to unvested RSUs $ 229.9
v3.21.1
STOCK-BASED COMPENSATION - Schedule of restricted stock unit and restricted stock activity (Details)
shares in Thousands
 3 Months Ended
Mar. 31, 2021
$ / shares
shares
RSUs  
Number of shares  
Balance at January 1, 2021 (in shares) | shares 3,766
Granted (in shares) | shares 3,960
Vested (in shares) | shares (204)
Forfeited and cancelled (in shares) | shares (41)
Balance at March 31, 2021 (in shares) | shares 7,481
Weighted- Average Grant Date Fair Value Per Share  
Weighted-average grant date fair value per share, beginning balance (in dollars per share) | $ / shares $ 54.80
Granted, Weighted-average grant date fair value per share (in dollars per share) | $ / shares 211.92
Vested, Weighted-average grant date fair value per share (in dollars per share) | $ / shares 54.80
Forfeited and cancelled, Weighted-average grant date fair value per share (in dollars per share) | $ / shares 188.60
Weighted-average grant date fair value per share, ending balance (in dollars per share) | $ / shares $ 137.25
Restricted Stock  
Number of shares  
Balance at January 1, 2021 (in shares) | shares 824
Granted (in shares) | shares 1,319
Vested (in shares) | shares 0
Forfeited and cancelled (in shares) | shares 0
Balance at March 31, 2021 (in shares) | shares 2,143
Weighted- Average Grant Date Fair Value Per Share  
Weighted-average grant date fair value per share, beginning balance (in dollars per share) | $ / shares $ 23.46
Granted, Weighted-average grant date fair value per share (in dollars per share) | $ / shares 171.85
Vested, Weighted-average grant date fair value per share (in dollars per share) | $ / shares 0
Forfeited and cancelled, Weighted-average grant date fair value per share (in dollars per share) | $ / shares 0
Weighted-average grant date fair value per share, ending balance (in dollars per share) | $ / shares $ 114.80
v3.21.1
STOCK-BASED COMPENSATION - Schedule of stock based compensation (Details) - USD ($)
$ in Thousands
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Stock based compensation expense $ 104,628 $ 9,180
Technology and development    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Stock based compensation expense 73,256 4,882
Sales and marketing    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Stock based compensation expense 3,531 176
General and administrative    
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]    
Stock based compensation expense $ 27,841 $ 4,122
v3.21.1
INCOME TAXES (Details)
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Income Tax Disclosure [Abstract]    
Effective income tax rate 22.60% 8.40%
v3.21.1
NET INCOME PER SHARE - Schedule of net income per share (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Numerator    
Net income $ 771,463 $ 31,973
Less: Income allocated to participating securities (469,567) (31,973)
Net income attributable to common stockholders, basic $ 301,896 $ 0
Denominator    
Weighted-average shares of common stock used to compute net income per share attributable to common stockholders, basic 79,373,000 66,957,000
Net income per share attributable to common stockholders, basic (in dollars per share) $ 3.80 $ 0
Numerator    
Net income $ 771,463 $ 31,973
Less: Income allocated to participating securities (383,744) (31,973)
Net income attributable to common stockholders - diluted $ 387,719 $ 0
Denominator    
Weighted-average shares of common stock used to compute net income per share attributable to common stockholders, basic 79,373,000 66,957,000
Weighted-average effect of potentially dilutive securities:    
Warrants 290,000 0
Weighted-average shares of common stock used to compute net income per share attributable to common stockholders, diluted 126,996,000 66,957,000
Net income per share attributable to common stockholders, diluted (in dollars per share) $ 3.05 $ 0
Stock options    
Weighted-average effect of potentially dilutive securities:    
Share-based compensation plan 44,492,000 0
RSUs    
Weighted-average effect of potentially dilutive securities:    
Share-based compensation plan 2,841,000 0
v3.21.1
NET INCOME PER SHARE - Schedule of potentially dilutive shares (Details) - shares
shares in Thousands
 3 Months Ended
Mar. 31, 2021
Mar. 31, 2020
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Number of shares excluded in the computation of diluted earnings per share 2,523 42,507
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 192 41,408
RSUs    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Number of shares excluded in the computation of diluted earnings per share 2,331 0
Warrants    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Number of shares excluded in the computation of diluted earnings per share 0 408
Contingent consideration recognized in asset acquisition    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Number of shares excluded in the computation of diluted earnings per share 0 691
v3.21.1
SUBSEQUENT EVENTS (Details)
 1 Months Ended
Apr. 01, 2021
vote
shares
Feb. 28, 2021
Mar. 31, 2021
shares
Dec. 31, 2020
shares
Subsequent Event [Line Items]        
Common stock, authorized (in shares)     490,413,936  
Employee Stock        
Subsequent Event [Line Items]        
Stock plan offering period   24 months    
Class A common stock        
Subsequent Event [Line Items]        
Common stock, authorized (in shares)     282,000,000 267,640,000
Class A common stock | Subsequent Event        
Subsequent Event [Line Items]        
Common stock, authorized (in shares) 10,000,000,000      
Common stock, voting rights per share | vote 1      
Class A common stock | Employee Stock        
Subsequent Event [Line Items]        
Discount on purchase price of common stock   15.00%    
Class B common stock        
Subsequent Event [Line Items]        
Common stock, authorized (in shares)     208,413,936 208,414,000
Class B common stock | Subsequent Event        
Subsequent Event [Line Items]        
Common stock, authorized (in shares) 500,000,000      
Common stock, voting rights per share | vote 20      
Common stock, conversion ratio 1      
Undesignated common stock | Subsequent Event        
Subsequent Event [Line Items]        
Common stock, authorized (in shares) 500,000,000      
Undesignated preferred stock | Subsequent Event        
Subsequent Event [Line Items]        
Preferred stock, authorized (in shares) 500,000,000