COINBASE GLOBAL, INC., 10-K filed on 2/15/2024
Annual Report
v3.24.0.1
Cover Page - USD ($)
$ in Billions
 12 Months Ended
Dec. 31, 2023
Feb. 08, 2024
Jun. 30, 2023
Entity Information [Line Items]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Dec. 31, 2023    
Current Fiscal Year End Date --12-31    
Document Transition Report false    
Entity File Number 001-40289    
Entry Registrant Name Coinbase Global, Inc.    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 46-4707224    
Title of 12(b) Security Class A common stock, $0.00001 par value per share    
Trading Symbol COIN    
Security Exchange Name NASDAQ    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Document Financial Statement Error Correction false    
Entity Shell Company false    
Entity Public Float     $ 12.0
Documents Incorporated by Reference
Portions of the registrant’s definitive proxy statement for its 2024 Annual Meeting of Stockholders, or Proxy Statement, to be filed within 120 days after the end of the fiscal year covered by this Annual Report on Form 10-K, are incorporated by reference in Part III. Except with respect to information specifically incorporated by reference in this Annual Report, the Proxy Statement shall not be deemed to be filed as part hereof.
    
Entity Central Index Key 0001679788    
Amendment Flag false    
Document Fiscal Year Focus 2023    
Document Fiscal Period Focus FY    
Class A common stock      
Entity Information [Line Items]      
Entity Common Stock, Shares Outstanding   195,531,120  
Class B common stock      
Entity Information [Line Items]      
Entity Common Stock, Shares Outstanding   46,744,055  
v3.24.0.1
Audit Information
 12 Months Ended
Dec. 31, 2023
Auditor Information [Abstract]  
Auditor Firm ID 34
Auditor Name Deloitte & Touche LLP
Auditor Location San Francisco, California
v3.24.0.1
Consolidated Balance Sheets - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Current assets:    
Cash and cash equivalents $ 5,139,351 $ 4,425,021
Restricted cash 22,992 25,873
Customer custodial funds 4,570,845 5,041,119
Safeguarding customer crypto assets 192,583,060 75,413,188
USDC 576,028 861,149
Accounts and loans receivable, net of allowance 361,715 404,376
Income tax receivable 63,726 60,441
Prepaid expenses and other current assets 148,814 217,048
Total current assets 203,466,531 86,448,215
Crypto assets held 449,925 424,393
Deferred tax assets 1,272,233 1,046,791
Lease right-of-use assets 12,737 69,357
Property and equipment, net 192,550 171,853
Goodwill 1,139,670 1,073,906
Intangible assets, net 86,422 135,429
Other non-current assets 362,885 354,929
Total assets 206,982,953 89,724,873
Current liabilities:    
Customer custodial cash liabilities 4,570,845 4,829,587
Safeguarding customer crypto liabilities 192,583,060 75,413,188
Accounts payable 39,294 56,043
Accrued expenses and other current liabilities 447,050 331,236
Crypto asset borrowings 62,980 151,505
Lease liabilities, current 10,902 33,734
Total current liabilities 197,714,131 80,815,293
Lease liabilities, non-current 3,821 42,044
Long-term debt 2,979,957 3,393,448
Other non-current liabilities 3,395 19,531
Total liabilities 200,701,304 84,270,316
Commitments and contingencies (Note 22)
Preferred stock, $0.00001 par value; 500,000 shares authorized and zero shares issued and outstanding at December 31, 2023 and 2022, respectively 0 0
Stockholders’ equity:    
Additional paid-in capital 4,491,571 3,767,686
Accumulated other comprehensive loss (30,270) (38,606)
Retained earnings 1,820,346 1,725,475
Total stockholders’ equity 6,281,649 5,454,557
Total liabilities and stockholders’ equity 206,982,953 89,724,873
Class A common stock    
Stockholders’ equity:    
Common stock 2 2
Class B common stock    
Stockholders’ equity:    
Common stock $ 0 $ 0
v3.24.0.1
Consolidated Balance Sheets (Parenthetical) - $ / shares
Dec. 31, 2023
Dec. 31, 2022
Convertible preferred stock par value (in dollars per share) $ 0.00001 $ 0.00001
Convertible preferred shares authorized (in shares) 500,000,000 500,000,000
Convertible preferred shares issued (in shares) 0 0
Convertible preferred shares outstanding (in shares) 0 0
Class A common stock    
Common stock, par value (in dollars per share) $ 0.00001 $ 0.00001
Common stock, authorized (in shares) 10,000,000,000 10,000,000,000
Common stock, issued (in shares) 195,192,000 182,796,000
Common stock, outstanding (in shares) 195,192,000 182,796,000
Class B common stock    
Common stock, par value (in dollars per share) $ 0.00001 $ 0.00001
Common stock, authorized (in shares) 500,000,000 500,000,000
Common stock, issued (in shares) 46,856,000 48,070,000
Common stock, outstanding (in shares) 46,856,000 48,070,000
v3.24.0.1
Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Revenue:      
Revenue $ 3,108,383 $ 3,194,208 $ 7,839,444
Operating expenses:      
Transaction expense 420,705 629,880 1,267,924
Technology and development 1,324,541 2,326,354 1,291,561
Sales and marketing 332,312 510,089 663,689
General and administrative 1,041,308 1,600,586 909,392
Crypto asset impairment, net (34,675) 722,211 153,160
Restructuring 142,594 40,703 0
Other operating expense, net 43,260 74,593 477,148
Total operating expenses 3,270,045 5,904,416 4,762,874
Operating (loss) income (161,662) (2,710,208) 3,076,570
Interest expense 82,766 88,901 29,160
Other (income) expense, net (167,583) 265,473 20,463
(Loss) income before income taxes (76,845) (3,064,582) 3,026,947
Benefit from income taxes (171,716) (439,633) (597,173)
Net income (loss) 94,871 (2,624,949) 3,624,120
Net income (loss) attributable to common stockholders:      
Basic 94,752 (2,624,949) 3,096,958
Diluted $ 94,751 $ (2,631,179) $ 3,190,404
Net income (loss) per share attributable to common stockholders:      
Basic (in dollars per share) $ 0.40 $ (11.81) $ 17.47
Diluted (in dollars per share) $ 0.37 $ (11.83) $ 14.50
Weighted-average shares of common stock used to compute net income (loss) per share attributable to common stockholders:      
Basic (in shares) 235,796 222,314 177,319
Diluted (in shares) 254,391 222,338 219,965
Net revenue      
Revenue:      
Revenue $ 2,926,540 $ 3,148,815 $ 7,354,753
Other revenue      
Revenue:      
Revenue $ 181,843 $ 45,393 $ 484,691
v3.24.0.1
Consolidated Statements of Comprehensive Loss - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Statement of Comprehensive Income [Abstract]      
Net income (loss) $ 94,871 $ (2,624,949) $ 3,624,120
Other comprehensive income (loss):      
Translation adjustment, gross 9,077 (41,502) (9,651)
Income tax effect 741 (6,291) 0
Translation adjustment, net of tax 8,336 (35,211) (9,651)
Comprehensive income (loss) $ 103,207 $ (2,660,160) $ 3,614,469
v3.24.0.1
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 (Loss) Income
Retained Earnings
Beginning balance (in shares) at Dec. 31, 2020   112,878,000        
Beginning balance at Dec. 31, 2020   $ 562,467        
Increase (Decrease) in Temporary Equity [Roll Forward]            
Conversion of preferred stock (in shares)   (112,878,000) 112,878,000      
Conversion of preferred stock $ 562,467 $ (562,467) $ 2 $ 562,465    
Ending balance (in shares) at Dec. 31, 2021   0        
Ending balance at Dec. 31, 2021   $ 0        
Beginning balance (in shares) at Dec. 31, 2020     73,108,000      
Beginning balance at Dec. 31, 2020 963,584   $ 0 231,024 $ 6,256 $ 726,304
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Issuance of equity instruments as consideration for business combination (in shares)     3,985,000      
Issuance of equity instruments as consideration for business combinations 544,588     544,588    
Issuance of common stock from exercise of warrants (in shares)     412,000      
Issuance of common stock from exercise of warrants 433     433    
Issuance of common stock upon settlement of RSUs and restricted common stock, net of shares withheld (in shares)     1,775,000      
Issuance of common stock upon settlement of Restricted Stock Units (“RSUs”) and restricted common stock, net of shares withheld (262,794)     (262,794)    
Issuance of common stock upon exercise of stock options, net of repurchases (in shares)     24,909,000      
Issuance of common stock upon exercise of stock options, net of repurchases 212,476     212,476    
Issuance of common stock under the Employee Stock Purchase Plan (shares)     50,000      
Issuance of common stock under the ESPP 12,444     12,444    
Stock-based compensation expense 824,153     824,153    
Purchase of capped calls (90,131)     (90,131)    
Comprehensive loss (9,651)       (9,651)  
Net income (loss) 3,624,120         3,624,120
Ending balance (in shares) at Dec. 31, 2021     217,117,000      
Ending balance at Dec. 31, 2021 $ 6,381,689   $ 2 2,034,658 (3,395) 4,350,424
Ending balance (in shares) at Dec. 31, 2022 0 0        
Ending balance at Dec. 31, 2022 $ 0 $ 0        
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Issuance of equity instruments as consideration for business combination (in shares)     1,663,000      
Issuance of equity instruments as consideration for business combinations 314,356     314,356    
Issuance of common stock to settle contingent consideration (in shares)     58,000      
Issuance of common stock to settle contingent consideration 4,661     4,661    
Issuance of common stock upon settlement of RSUs and restricted common stock, net of shares withheld (in shares)     7,870,000      
Issuance of common stock upon settlement of Restricted Stock Units (“RSUs”) and restricted common stock, net of shares withheld (351,867)     (351,867)    
Issuance of common stock upon exercise of stock options, net of repurchases (in shares)     3,883,000      
Issuance of common stock upon exercise of stock options, net of repurchases 56,737     56,737    
Issuance of common stock under the Employee Stock Purchase Plan (shares)     275,000      
Issuance of common stock under the ESPP 21,622     21,622    
Stock-based compensation expense 1,683,840     1,683,840    
Other 3,679     3,679    
Comprehensive loss (35,211)       (35,211)  
Net income (loss) (2,624,949)         (2,624,949)
Ending balance (in shares) at Dec. 31, 2022     230,866,000      
Ending balance at Dec. 31, 2022 $ 5,454,557   $ 2 3,767,686 (38,606) 1,725,475
Ending balance (in shares) at Dec. 31, 2023 0 0        
Ending balance at Dec. 31, 2023 $ 0 $ 0        
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Issuance of equity instruments as consideration for business combination (in shares)     961,000      
Issuance of equity instruments as consideration for business combinations 11,302     11,302    
Issuance of common stock to settle contingent consideration (in shares)     28,000      
Issuance of common stock to settle contingent consideration 2,291     2,291    
Issuance of common stock upon settlement of RSUs and restricted common stock, net of shares withheld (in shares)     6,833,000      
Issuance of common stock upon settlement of Restricted Stock Units (“RSUs”) and restricted common stock, net of shares withheld $ (277,798)     (277,798)    
Issuance of common stock upon exercise of stock options, net of repurchases (in shares) 3,039,000   2,979,000      
Issuance of common stock upon exercise of stock options, net of repurchases $ 50,804     50,804    
Issuance of common stock under the Employee Stock Purchase Plan (shares)     381,000      
Issuance of common stock under the ESPP 18,959     18,959    
Stock-based compensation expense 834,285     834,285    
Stock-based compensation expense recognized in relation to restructuring 84,042     84,042    
Comprehensive loss 8,336       8,336  
Net income (loss) 94,871         94,871
Ending balance (in shares) at Dec. 31, 2023     242,048,000      
Ending balance at Dec. 31, 2023 $ 6,281,649   $ 2 $ 4,491,571 $ (30,270) $ 1,820,346
v3.24.0.1
Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Cash flows from operating activities      
Net income (loss) $ 94,871 $ (2,624,949) $ 3,624,120
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:      
Depreciation and amortization 139,642 154,069 63,651
Other impairment expense 18,793 26,518 500
Investment impairment expense 29,375 101,445 0
Stock-based compensation expense 780,668 1,565,823 820,685
Restructuring stock-based compensation expense 84,042 0 0
Provision for transaction losses and doubtful accounts 11,059 (13,051) 22,390
Deferred income taxes (216,334) (468,035) (558,329)
Unrealized loss (gain) on foreign exchange 17,190 28,516 (14,944)
Non-cash lease expense 40,429 31,123 34,542
(Gain) loss on investments (50,121) 3,056 (20,138)
Fair value (gain) loss on derivatives (41,033) 7,410 (32,056)
Gain on extinguishment of long-term debt, net (117,383) 0 0
Crypto asset impairment expense 96,783 757,257 329,152
Crypto assets received as revenue (460,878) (470,591) (1,015,920)
Crypto asset payments for expenses 298,255 383,221 815,783
Realized gain on crypto assets (145,594) (36,666) (178,234)
Other operating activities, net 16,981 883 5,532
Net changes in operating assets and liabilities 326,206 (1,031,448) 141,438
Net cash provided by (used in) operating activities 922,951 (1,585,419) 4,038,172
Cash flows from investing activities      
Capitalized internal-use software development costs (63,202) (61,038) (22,073)
Business combinations, net of cash acquired (30,730) (186,150) (70,911)
Purchase of investments (11,822) (63,048) (326,513)
Purchase of assembled workforce 0 0 (60,800)
Loans originated (586,691) (207,349) (336,189)
Proceeds from repayment of loans 513,698 327,539 124,520
Assets pledged as collateral (27,899) (41,630) 0
Assets pledged as collateral returned 68,338 0 0
Settlement of crypto futures contract (43,339) 0 0
Purchase of crypto assets held (277,367) (1,400,032) (3,009,086)
Disposal of crypto assets held 461,325 969,185 2,574,032
Other investing activities, net 3,081 (1,299) 2,280
Net cash provided by (used in) investing activities 5,392 (663,822) (1,124,740)
Cash flows from financing activities      
Issuance of common stock upon exercise of stock options, net of repurchases 47,944 51,497 217,064
Taxes paid related to net share settlement of equity awards (277,798) (351,867) (262,794)
Proceeds received under the ESPP 16,297 20,848 19,889
Customer custodial cash liabilities (274,822) (5,562,558) 6,691,859
Issuance of convertible senior notes, net 0 0 1,403,753
Issuance of senior notes, net 0 0 1,976,011
Purchase of capped calls 0 0 (90,131)
Repayment of long-term debt (303,533) 0 0
Assets received as collateral 66,014 0 0
Assets received as collateral returned (64,952) 0 0
Proceeds from short-term borrowings 31,640 190,956 20,000
Repayments of short-term borrowings (52,122) (191,073) 0
Other financing activities 0 3,679 433
Net cash (used in) provided by financing activities (811,332) (5,838,518) 9,976,084
Net increase (decrease) in cash, cash equivalents, and restricted cash 117,011 (8,087,759) 12,889,516
Effect of exchange rates on cash, cash equivalents, and restricted cash 8,772 (163,257) (64,883)
Cash, cash equivalents, and restricted cash, beginning of period 9,429,646 17,680,662 4,856,029
Cash, cash equivalents, and restricted cash, end of period 9,555,429 9,429,646 17,680,662
Supplemental disclosure of cash flow information      
Cash paid during the period for interest 76,142 82,399 3,793
Cash paid during the period for income taxes 39,122 35,888 68,614
Operating cash outflows for amounts included in the measurement of operating lease liabilities $ 14,730 $ 14,528 $ 20,061
v3.24.0.1
NATURE OF OPERATIONS
 12 Months Ended
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
NATURE OF OPERATIONS NATURE OF OPERATIONS
Coinbase, Inc. was founded in 2012. In April 2014, in connection with a corporate reorganization, Coinbase, Inc. became a wholly-owned subsidiary of Coinbase Global, Inc. (together with its consolidated subsidiaries, the “Company”). On April 14, 2021, the Company completed the direct listing of its Class A common stock on the Nasdaq Global Select Market (the “Direct Listing”).
The Company provides a trusted platform that serves as a compliant gateway to the onchain economy and enables customers to engage in a wide variety of activities, including discovering, trading, staking, storing, spending, earning, and using their crypto assets in both proprietary and third-party product experiences enabled by access to decentralized applications. The Company offers (i) consumers their primary financial account for the cryptoeconomy, (ii) institutions a full-service prime brokerage platform with access to deep pools of liquidity across the crypto marketplace, and (iii) developers a suite of products granting access to the Company’s ecosystem.
The Company is a remote-first company. Accordingly, the Company does not maintain a headquarters or principal executive offices. Substantially all of the Company’s executive team meetings are held virtually, with meetings occasionally held in-person at locations that are either not in the Company’s offices or in various of the Company’s offices distributed around the world. The Company holds all of its stockholder meetings virtually.
v3.24.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 12 Months Ended
Dec. 31, 2023
Accounting Policies [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of presentation and principles of consolidation
The accompanying consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”), and 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 consolidated financial statements, the basis of presentation of such subsidiaries is converted to GAAP. All intercompany accounts and transactions have been eliminated in consolidation.
Reclassifications
Certain prior period amounts have been reclassified in order to conform with the current period presentation. These reclassifications have no impact on the Company’s previously reported consolidated results.
Use of estimates
The preparation of the consolidated financial statements in accordance with GAAP requires management to make estimates and assumptions in the 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 performance stock-based awards issued; the useful lives of long-lived assets; the impairment of long-lived assets; the valuation of privately-held strategic investments, including impairments; the fair value of safeguarding customer crypto assets and liabilities; the identification and valuation of assets acquired and liabilities assumed in business combinations; the fair value of derivatives and related hedges; loss contingency identification and valuation, including assessing the likelihood of adverse outcomes from positions, claims, and disputes, recoveries of losses recorded, and associated timing.
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 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.
Foreign currency transactions
The Company’s functional currency is the U.S. dollar. The Company has exposure to foreign currency translation gains and losses arising from the Company’s net investment in foreign subsidiaries. The revenues, expenses, and financial results of these foreign subsidiaries are recorded in their respective functional currencies. The financial statements of these subsidiaries are translated into U.S. dollars using a current rate of exchange, with gains or losses, net of tax as applicable, included in accumulated other comprehensive income (loss) (“AOCI”) within the consolidated statements of changes in preferred stock and stockholders’ equity. Cumulative translation adjustments are released from AOCI and recorded in the consolidated statements of operations when the Company disposes or loses control of a consolidated subsidiary. Gains and losses resulting from remeasurement are recorded in other expense (income), net within the consolidated statements of operations.
Realized gains and losses on foreign exchange resulting from the settlement of the Company’s foreign currency assets and liabilities and unrealized impacts on foreign exchange resulting from remeasurement of transactions and monetary assets and liabilities denominated in non-functional currencies are recognized as a component of other (income) expense, net on the consolidated statements of operations.
Fair value measurements
The Company measures certain assets and liabilities at fair value. The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement:
•Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.
•Level 2: Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
•Level 3: Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability.
Cash and cash equivalents
Cash and cash equivalents include cash and interest-bearing highly liquid investments held at financial institutions, cash on hand that is not restricted as to withdrawal or use with an initial maturity of three months or less, and cash held in accounts at venues. Venues include other crypto asset trading platforms that hold money transmitter licenses and payment processors. Cash and cash equivalents excludes customer legal tender, which is reported separately as customer custodial funds on the accompanying consolidated balance sheets. Refer to Customer custodial funds and customer custodial cash liabilities below for further details.
Restricted cash
The Company has restricted cash deposits at financial institutions related to operational restricted deposits.
Customer custodial funds and customer custodial cash liabilities
Customer custodial funds represent restricted cash and cash equivalents maintained in segregated Company bank accounts that are held for the exclusive benefit of customers and deposits in transit from payment processors and financial institutions. Under GAAP, the balance in these accounts that exceeds customer custodial cash liabilities is presented within cash and cash equivalents. Customer custodial cash liabilities represent the obligation to return cash deposits held by customers in their fiat wallets and unsettled fiat deposits and withdrawals. Deposits in transit represent settlements from third-party payment processors and banks for customer transactions. Deposits in transit are typically received within five 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 deposit settles. In certain jurisdictions, deposits in transit qualify as eligible liquid assets to meet regulatory requirements to fulfill the Company’s direct obligations under customer custodial cash liabilities. The Company restricts the use of the assets underlying the customer custodial funds to meet regulatory requirements and classifies the assets as current based on their purpose and availability to fulfill the Company’s direct obligation under customer custodial cash liabilities.
Certain jurisdictions where the Company operates require the Company to hold eligible liquid assets, as defined by applicable regulatory requirements and commercial law in these jurisdictions, equal to at least 100% of the aggregate amount of all customer custodial cash liabilities. Depending on the jurisdiction, eligible liquid assets can include cash and cash equivalents, customer custodial funds, and certain other customer receivables. As of December 31, 2023 and 2022, the Company’s eligible liquid assets were greater than the aggregate amount of customer custodial cash liabilities.
Safeguarding customer crypto assets and liabilities
The Company safeguards crypto assets for customers in digital wallets and portions of cryptographic keys necessary to access crypto assets on the Company’s platform. The Company safeguards these assets and/or keys and is obligated to safeguard them from loss, theft, or other misuse. The Company records safeguarding customer crypto assets and liabilities, in accordance with Staff Accounting Bulletin 121 (“SAB 121”). The Company maintains a record of all crypto assets in digital wallets held on the Company’s platform as well as the full or a portion of private keys including backup keys, which are maintained on behalf of customers. For crypto assets where the customer can transact without the involvement of the Company or crypto assets where the Company does not maintain a private key or the ability to recover a customer’s private key or their crypto assets, these balances are not recorded, as there is no related safeguarding obligation in accordance with SAB 121. The Company records the safeguarding customer crypto assets and liabilities, on the initial recognition and at each reporting date, at the fair value of the crypto assets which it safeguards for its customers.
The Company is committed to securely storing all customer crypto assets and cryptographic keys (or portions thereof) held on behalf of customers. The value of these safeguarded assets is recorded as safeguarding customer crypto liabilities and corresponding safeguarding customer crypto assets. As such, the Company may be liable to its customers for losses arising from theft or loss of private keys. The Company has no reason to believe it will incur any expense associated with such potential liability because (i) it has no known or historical experience of claims to use as a basis of measurement, (ii) it accounts for and continually verifies the amount of crypto assets on its platform, and (iii) it has established security around private key management to minimize the risk of theft or loss. The Company has adopted a number of measures to safeguard crypto assets it secures including, but not limited to, holding customer crypto assets on a 1:1 basis and strategically storing custodied assets offline using the Company’s cold storage process. The Company also does not reuse or rehypothecate customer crypto
assets nor grant security interests in customer crypto assets, in each case unless required by law or expressly agreed to by the institutional customer. Any loss or theft would impact the measurement of the customer crypto assets.
USDC
USDC is a stablecoin redeemable on a one-to-one basis for U.S. dollars. USDC is accounted for as a financial instrument on the consolidated balance sheets.
Accounts and loans receivable and allowance for doubtful accounts
Accounts and loans receivable are contractual rights to receive cash or crypto assets either on demand or on fixed or determinable dates, and are recognized as an asset on the consolidated balance sheets. Accounts receivable consists of stablecoin revenue receivable, customer fee revenue receivable, and other receivables. Loans receivable consists of fiat loans receivable and crypto asset loans receivable.
Stablecoin revenue receivable represents the pro rata portion of income earned and receivable on USDC reserves through the Company’s arrangement with the issuer of USDC. Revenue derived by the Company from this arrangement is dependent on various factors including the balance of USDC on the Company’s platform, the total market capitalization of USDC, and the prevailing interest rate environment.
Customer fee accounts receivable primarily comprise receivables from custodial fee revenue and other subscription and services revenue, which includes fees earned from providing services such as dedicated secure cold storage, staking, delegation, infrastructure, financing, and software licenses. Receivables are recorded at the transaction price, representing consideration to which the Company expects to be entitled to in exchange for satisfying performance obligations. For obligations satisfied over time, receivables are recognized as revenue is earned, typically monthly. For obligations satisfied at a point in time, receivables are recognized when the obligation is complete.
Fiat loans receivable represents cash loans made to institutions, and prior to November 20, 2023, to consumers. These loans are collateralized with USDC or certain crypto assets held by those users on the Company’s platform. The Company generally does not have the right to use such collateral unless the borrower defaults on the loans. See Collateral below for additional details regarding the Company’s obligation to return collateral. Fiat loans receivable are measured at amortized cost. The carrying value of the loans approximates their fair value due to their short-term duration of less than 12 months.
Crypto asset loans receivable represents crypto asset loans made to institutions. These loans are collateralized with fiat, USDC, or certain crypto assets held by those users on the Company’s platform. Crypto asset loans receivable are initially and subsequently measured at the fair value of the underlying crypto asset lent and adjusted for expected credit losses.
The Company also loans USDC. When USDC is loaned, it is not derecognized from the consolidated balance sheets as the Company maintains effective control over the transferred USDC. Therefore, there are no USDC loans receivable recorded, and the loaned USDC remains presented in USDC in the consolidated balance sheets.
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 fiat loans receivable and crypto asset loans receivable, the Company applies the collateral maintenance provision practical expedient. Due to the collateral requirements the Company applies to such loans, the Company’s process for collateral maintenance, and collateral held on the Company’s platform, the Company’s credit exposure is significantly limited and no allowance, write-offs or recoveries were recorded against fiat loans receivable or crypto asset loans receivable for the periods presented. 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. Due to the nature of the collateral the Company requires to be pledged, the Company is readily able to liquidate in the case of the borrower’s default.
Collateral
Company assets pledged as collateral
The Company enters into fiat, USDC, and crypto asset borrowing arrangements with certain institutional customers that require the Company to pledge collateral in the form of fiat, USDC, or crypto assets in which the lender may have the right to sell, repledge, or rehypothecate such collateral without the Company’s consent. The Company also enters into certain derivative contracts which require the Company to pledge collateral in the form of fiat. The Company is required to maintain a collateral to loan ratio per the borrowing arrangements.

If the lender has the right to use the collateral or if the collateral is fiat, the Company presents the collateral pledged as a right to receive the collateral within prepaid expenses and other current assets in the consolidated balance sheets. The lender is not obligated to return collateral equal to the fair value of the borrowings if the Company defaults on its borrowings. As of December 31, 2023, the Company has not defaulted on any of its borrowings.

Borrower assets pledged as collateral
For loans receivable, the Company requires borrowers to pledge collateral, for which it may then be required to record a corresponding obligation to return the collateral to the borrower. As of December 31, 2023, the collateral requirements ranged from 115% to 250% of the fair value of the loan, and the borrower is required to pledge additional assets to maintain their required collateral percentage. The Company may have the right to use collateral pledged by the borrower. If the Company has the right to use collateral denominated in USDC, crypto assets, or fiat, the Company records the collateral as an asset within USDC, crypto assets held, or cash and cash equivalents, respectively, with a corresponding obligation to return collateral within accrued expenses and other current liabilities, in the consolidated balance sheets. For collateral denominated in USDC or crypto assets that is pledged against fiat loans receivable, the Company will only record the collateral if it has also been subsequently sold. The Company is not obligated to return collateral equal to the fair value of the borrowings if the borrower defaults. Due to the nature of the collateral the Company requires to be pledged by borrowers, the Company is readily able to liquidate in the case of the borrower’s default.
Off-balance sheet collateral arrangements
The Company may pledge USDC collateral to lenders which are not recognized as assets pledged as collateral as they do not meet the derecognition criteria. This collateral continues to be shown within USDC on the consolidated balance sheets.
The Company may receive collateral denominated in USDC or crypto assets pledged by borrowers where the Company does not have a right to use the collateral and does not recognize it on the consolidated balance sheets since the collateral does not meet the recognition criteria.
Concentration of credit risk
The Company’s cash and cash equivalents, restricted cash, customer custodial funds, and accounts and loans receivable are potentially subject to concentration of credit risk. Cash and cash equivalents, restricted cash, and customer custodial funds are primarily placed with financial institutions which are of high credit quality. The Company invests cash and cash equivalents and customer custodial funds primarily in highly liquid, highly rated instruments which are uninsured. The Company may also have corporate deposit balances with financial institutions which exceed the Federal Deposit Insurance Corporation insurance limit of $250,000. The Company has not experienced losses on these accounts and does not believe it is exposed to any significant credit risk with respect to these accounts. The
Company also holds cash and crypto at crypto asset trading venues and payment processors and performs a regular assessment of these venues as part of its risk management process.
The issuer of USDC reported that, as of December 31, 2023, underlying reserves were held in cash, short-duration U.S. Treasuries, and overnight U.S. Treasury repurchase agreements within segregated accounts for the benefit of USDC holders.
As of December 31, 2023 and 2022, the Company had four and one counterparties, respectively, who accounted for more than 10% of the Company’s accounts and loans receivable, net. See Note 13. Collateral for details on collateralization of loans receivable.
During the years ended December 31, 2023 and 2022, no counterparty accounted for more than 10% of total revenue, respectively.
Crypto assets held
The crypto assets held by the Company, with no qualifying fair value hedge, are accounted for as intangible assets with indefinite useful lives, and are initially measured at cost. Crypto assets accounted for as intangible assets are subject to impairment losses if the fair value of crypto assets decreases below the carrying value at any time during the period. The fair value is measured using the quoted price of the crypto asset at the time its fair value is being measured in the Company’s principal market. Gross impairments, net of subsequent realized gains on the sale and disposal of previously impaired crypto assets held are reflected in crypto asset impairment, net in the consolidated statements of operations. The Company assigns costs to crypto assets on a first-in, first-out basis.
Crypto assets held as the hedged item in qualifying fair value hedges are initially measured at cost. Subsequent changes in fair value attributable to the hedged risk are adjusted to the carrying amount of these crypto assets, with changes in fair value recorded in other operating expense, net in the consolidated statements of operations.
The Company recognizes crypto assets received through airdrops or forks if the crypto asset is expected to generate probable future benefit and if the Company is able to support the trading, custody, or withdrawal of these assets. The Company records the crypto assets received through airdrops or forks at their cost.
Leases
The Company determines if an arrangement is a lease at inception. Operating leases are included in lease right-of-use (“ROU”) assets and lease liabilities on the consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of future minimum lease payments over the lease term. Most leases do not provide an implicit rate, so the Company uses its incremental borrowing rate. The operating lease ROU assets also include any lease payments made before commencement and exclude lease incentives.
The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that those options will be exercised. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has made the policy election to account for short-term leases by recognizing the lease payments in profit or loss on a straight-line basis over the lease term and not recognizing these leases on the consolidated balance sheets. Variable lease payments are recognized in profit or loss in the period in which the obligation for those payments is incurred. The Company has real estate lease agreements with lease and non-lease components for which the Company has made the accounting policy election to account for these agreements as a single lease component.
Property and equipment
Property and equipment is stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the lesser of the estimated useful life of the asset or the remaining lease term. The estimated useful lives of the Company’s property, equipment, and software are generally as follows:
Property and EquipmentUseful Life
Furniture and fixtures
Three to five years
Computer equipment
Two to five years
Leasehold improvements
Lesser of useful life or remaining lease term
Capitalized software
One to three years
Capitalized software consists of costs incurred during the application development stage of internal-use software or implementation of a hosting arrangement that is a service contract. Capitalized costs consist of salaries and other compensation costs for employees, fees paid to third-party consultants who are directly involved in development efforts, and costs incurred for upgrades and enhancements to add functionality of the software. Other costs that do not meet the capitalization criteria are expensed as incurred.
The Company evaluates impairments of its property and equipment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. If the asset is not recoverable, measurement of an impairment loss is based on the fair value of the asset. When an impairment loss is recognized, the carrying amount of the asset is reduced to its estimated fair value.
Business combinations, goodwill, and acquired intangible assets
The results of businesses acquired in a business combination are included in the consolidated financial statements from the date of the acquisition. The Company accounts for its business combinations using the acquisition method of accounting, which requires, among other things, allocation of the fair value of purchase consideration to the tangible and intangible assets acquired and liabilities assumed 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 circumstances that existed at the date of acquisition, 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 consolidated statements of operations.
Goodwill is tested for impairment at the reporting unit level on an annual basis (October 1 for the Company) and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. For the periods presented, the Company did not have any goodwill impairment charges.
Acquired intangible assets with a definite useful life are amortized over their estimated useful lives on a straight-line basis. Each period, the Company evaluates the estimated remaining useful life of its intangible assets and whether events or changes in circumstances warrant a revision to the remaining period of amortization. Intangible assets assessed as having indefinite lives are not amortized, but are assessed for indicators that the useful life is no longer indefinite or for indicators of impairment each period.
The Company evaluates the recoverability of acquired intangible assets on an annual basis, or more frequently whenever circumstances indicate an intangible asset may be impaired. When indicators of impairment exist, the Company estimates future undiscounted cash flows attributable to such assets. In the event future undiscounted cash flows do not exceed the carrying amount of the assets, the asset would be considered impaired. The impairment loss is measured based upon the difference between the carrying amount and the fair value of the assets.
Investments
The Company holds strategic investments, which are included in other non-current assets on the consolidated balance sheets. The Company’s strategic investments primarily include equity investments in privately held companies without readily determinable fair values where the Company (1) holds less than 20% ownership in the entity, and (2) does not exercise significant influence. These investments are recorded at cost and adjusted for observable transactions for same or similar investments of the same issuer (referred to as the measurement alternative) or impairment.
Crypto asset borrowings
The Company borrows USDC and crypto assets from third parties on a secured and unsecured basis. When USDC is borrowed, it is not recorded on the consolidated balance sheets as the transfer criteria in ASC Topic 860, Transfers and Servicing, have not been met. Crypto assets borrowed by the Company are reported in crypto assets held on the consolidated balance sheets.
Crypto asset borrowings are accounted for as hybrid instruments, with a liability host contract that contains an embedded derivative based on the changes in the fair value of the underlying crypto asset. The host contract is not accounted for as a debt instrument because it is not a financial liability, is carried at the initial fair value of the assets acquired and reported in crypto asset borrowings on the consolidated balance sheets. The embedded derivative is accounted for at fair value, with changes in fair value recognized in other operating expense, net in the consolidated statements of operations. The embedded derivatives are included in crypto asset borrowings on the consolidated balance sheets.
The term of these borrowings either can be for a fixed term of less than one year or open-ended and repayable at the option of the Company or the lender. These borrowings bear a fee payable by the Company to the lender, which is based on a percentage of the amount borrowed and is denominated in the related crypto asset borrowed. The borrowing fee is recognized on an accrual basis and is included in other operating expense, net in the consolidated statements of operations.
Derivative contracts
Derivative contracts derive their value from underlying asset prices, other inputs, or a combination of these factors. Derivative contracts are recognized as either assets or liabilities on the consolidated balance sheets at fair value, with changes in fair value recognized in other operating expense, net. Cash flows from derivative contracts are recognized as investing activities and adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities in the consolidated statements of cash flows.
The Company enters into arrangements that result in obtaining the right to receive or obligation to deliver a fixed amount of crypto assets in the future. These are hybrid instruments, consisting of a receivable or debt host contract that is initially measured at the fair value of the underlying crypto assets and is subsequently carried at amortized cost, and an embedded forward feature based on the changes in the fair value of the underlying crypto asset. The embedded forward is bifurcated from the host contract, and is subsequently measured at fair value.
Derivatives designated as hedges
The Company applies hedge accounting to certain derivatives executed for risk management purposes. To qualify for hedge accounting, a derivative must be highly effective at reducing the risk associated with the exposure being hedged. The Company uses fair value hedges primarily to hedge the fair value exposure of crypto asset prices. Derivative amounts affecting earnings are recognized in the same line item as the earnings effect of the hedged item.
Long-term debt and interest expense
Long-term debt is carried at amortized cost. The Company accounted for the 2026 Convertible Notes wholly as debt because (1) the conversion features do not require bifurcation as a derivative under ASC Topic 815, Derivatives and Hedging, and (2) the 2026 Convertible Notes were not issued at a substantial discount.
The Company recognizes gains and losses on extinguishment of long-term debt as the difference between the reacquisition price and the net carrying amount of the debt, and these gains and losses are recognized in current-period earnings in other expense (income), net in the consolidated statements of operations.
Debt discounts and debt issuance costs are amortized to interest expense using the effective interest method over the contractual term of the respective note.
The Capped Calls meet the criteria for classification in equity, are not remeasured each reporting period and are included as a reduction to additional paid-in capital within stockholders’ equity.
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.
Transaction revenue
Consumer 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.
The Company’s service comprises a single performance obligation to provide a crypto asset matching service when customers buy, sell or convert crypto assets, or trade derivatives. 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 to provide the crypto asset to the customer (net). The Company does not control the crypto asset being provided before it is transferred to the buyer, does not have inventory risk related to the crypto asset, and is not responsible for the fulfillment of the crypto asset. The Company also does not set the price for the crypto asset as the price is a market rate established by users of the platform. As a result, the Company acts as an agent in facilitating the ability for a customer to purchase crypto assets from another customer.
The Company considers its performance obligation satisfied, and recognizes revenue, at the point in time the transaction is processed. Contracts with customers are usually open-ended and can be terminated by either party without a termination penalty. Therefore, contracts are defined at the transaction level and do not extend beyond the service already provided.
The Company charges a fee at the transaction level. The transaction price, represented by the transaction fee, is calculated based on volume and varies depending on payment type and the value of the transaction. Crypto asset purchase or sale transactions executed by a customer on the Company’s platform is based on tiered pricing that is driven primarily by transaction volume processed for a specific historical period. The Company has concluded that this volume-based pricing approach does not constitute a future material right since the discount is within a range typically offered to a class of customers with similar volume. The transaction fee is collected from the customer at the time the transaction is executed. In certain instances, the transaction fee can be collected in crypto assets, with revenue measured based on the amount of crypto assets received and the fair value of the crypto assets at the time of the transaction.
The transaction price includes estimates for reductions in revenue from transaction fee reversals that may not be recovered from customers. Such reversals occur when the customer disputes a transaction processed on their credit card or their bank account for a variety of reasons and seeks to have the charge reversed after the Company has processed the transaction. These amounts are estimated based upon the most likely amount of consideration to which the Company will be entitled. All estimates are based on historical experience and the Company’s best judgment at the time to the extent it is probable that a significant reversal of revenue recognized will not occur. All estimates of variable consideration are reassessed periodically. The total transaction price is allocated to the single performance obligation. While the Company recognizes transaction fee reversals as a reduction of net revenue, crypto asset losses related to those same transaction reversals are included in transaction expense.
Stablecoin revenue
Since 2018, the Company has earned income on fiat funds under an arrangement with the issuer of USDC which was included in interest income within subscriptions and services revenue. On August 18, 2023, the Company entered into an updated arrangement with the same counterparty. Pursuant to the arrangement, the Company earns a pro rata portion of income earned on USDC reserves based on the amount of USDC held on each respective party’s platform, and from the distribution and usage of USDC after certain expenses. Revenue derived by the Company from this arrangement is dependent on various factors including the balance of USDC on the Company’s platform, the total market capitalization of
USDC, and the prevailing interest rate environment. The arrangement is treated as an executory contract accounted for on an accrual basis. Prior period revenue recognized under the previous arrangement was reclassified to the stablecoin revenue line within subscription and services revenue, to conform to current period presentation.
Blockchain rewards
Blockchain rewards primarily comprises staking revenue, in which the Company participates in networks with proof-of-stake consensus algorithms through creating or validating blocks on the network using the staking validators that it controls. Blockchain protocols, or the participants that form the protocol networks, reward users for performing various activities on the blockchain. The most common form today is participating in proof-of-stake networks, however, there are other consensus algorithms. The Company considers itself the principal in transactions with the blockchain networks, and therefore presents such blockchain rewards earned on a gross basis. In exchange for participating in the consensus mechanism of these networks, the Company recognizes revenue in the form of the native token of the network. Each block creation or validation is a performance obligation. Revenue is recognized at the point when the block creation or validation is complete and the rewards are transferred into a digital wallet that the Company controls. Revenue is measured based on the number of tokens received and the fair value of the token at contract inception.
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 earned from customer custodial funds, cash and cash equivalents and loans 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 and loans is included in interest income within subscription and services revenue. Interest earned on the Company’s corporate cash and cash equivalents is included in corporate interest and other income within other revenue.
Custodial fee revenue
The Company provides a dedicated secure cold storage solution to customers and earns a fee, which is based on a contractual percentage of the daily value of assets under custody. The fee is collected on a monthly basis. These contracts typically have one performance obligation which is provided and satisfied over the term of the contracts as customers simultaneously receive and consume the benefits of the services. The contract may be terminated by a customer at any time, without incurring a penalty. Customers are billed on the last day of the month during which services were provided, with the amounts generally being due within thirty days of receipt of the invoice.
Other subscription and services revenue
Other subscription and services revenue primarily comprises revenue from Coinbase One, Coinbase Cloud, which includes staking application, delegation, and infrastructure services, Prime Financing, and revenue from other subscription licenses. Generally, revenue from other subscription and services contains one performance obligation, may have variable and non-cash consideration, and is recognized at a point in time or over the period that services are provided.
Transaction expense
Transaction expense includes costs incurred to operate the Company’s platform, process crypto asset trades, and perform wallet services. These costs include blockchain rewards distributed to customers for their participation in blockchain activities such as staking, account verification fees, and fees paid to payment processors and other financial institutions for customer transaction activity, contract acquisition costs, crypto asset losses due to transaction reversals, and miner fees to process transactions on blockchain networks. Transaction expense also includes rewards paid to users for staking activities
conducted by the Company. Fixed-fee costs are expensed over the term of the contract and transaction-level costs are expensed as incurred. The Company has elected to apply the practical expedient to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that would otherwise have been recognized is one year or less.
Stock-based compensation
The Company recognizes stock-based compensation expense using a fair-value based method for costs related to all equity awards granted under its equity incentive plans to employees, directors, and non-employees of the Company including restricted stock, RSUs, stock options, and purchase rights granted under the ESPP.
Valuation
The fair value of restricted stock and RSUs is estimated based on the fair value of the Company’s common stock on the date of grant.
The Company estimates the fair value of stock options with only service-based conditions and purchase rights under the ESPP on the date of grant using the Black-Scholes-Merton Option-Pricing Model. The model requires management to make a number of assumptions, including the fair value and expected volatility of the Company’s underlying common stock price, expected life of the option, risk-free interest rate, and expected dividend yield, which are calculated as follows:
•The fair value of the underlying stock is the fair value of the Company’s common stock on the date of grant. Prior to the Direct Listing, this fair value was determined using the probability weighted expected return method, with a discounted cash flow model or a market multiples method used for each expected outcome. Following the Direct Listing, this fair value is the closing price of the Company’s Class A common stock as reported on the Nasdaq Global Select Market on the grant date.
•The expected stock price volatility assumption for the Company’s stock is determined by using a weighted average of the historical stock price volatility of comparable companies from a representative peer group, as sufficient trading history for the Company’s common stock is not available.
•The Company uses historical exercise information and contractual terms of options to estimate the expected term.
•The risk-free interest rate for periods within the expected life of the option is based on the U.S. Treasury zero coupon bonds with terms consistent with the expected term of the award at the time of grant.
•The expected dividend yield assumption is based on the Company’s history and expectation of no dividend payouts.
The Company has two types of performance awards outstanding: performance stock options subject to a market condition and performance RSUs subject to both a market condition and a financial performance condition. The Company determines the fair value of performance awards subject to a market condition using a Monte Carlo Simulation Model (a binomial lattice-based valuation model). The Monte Carlo Simulation Model uses multiple input variables to determine the probability of satisfying the market condition requirements. The fair values of the awards are not subject to change based on future market conditions. The fair value of performance RSUs, or tranches thereof, subject to a financial performance condition is estimated based on the fair value of the Company’s Class A common stock on the date of grant.
Expense attribution
Stock-based compensation expense for RSUs and stock options with only service-based conditions, and purchase rights under the ESPP, is recorded on a straight-line basis over the requisite service period. The Company has elected to account for forfeitures of awards as they occur, with previously recognized compensation reversed in the period that the awards are forfeited.
The Company uses the accelerated attribution method to recognize expense over the requisite service period for performance awards, or tranches thereof, subject to a market condition. Once the associated performance condition, if any, becomes probable of being achieved, regardless of whether or not the market condition is ultimately satisfied, stock-based compensation expense is recognized according to the market-based fair value measured on the grant date and subject to continued service over the period.
For performance awards, or tranches thereof, subject to financial performance conditions, the Company evaluates the cumulative revenue and the cumulative adjusted EBITDA results at each reporting date to determine which performance condition and level of achievement becomes most probable of being achieved for the assessment period. Once a threshold of achievement is reached, stock-based compensation expense is recognized over the requisite service period based on the result that is probable of occurring at each reporting date until the final vesting date, subject to continued service over the period.
Early exercise option
Certain stock options granted provide employee option holders the right to exercise unvested options for restricted common stock, which is subject to a repurchase right held by the Company at the original purchase price in the event the optionee’s employment is terminated either voluntarily or involuntarily prior to vesting of the exercised stock. Early exercises of options are not deemed to be substantive exercises for accounting purposes and accordingly, amounts received for early exercises are recorded as a liability. These repurchase terms are considered to be a forfeiture provision and do not result in variable accounting. These amounts are reclassified to common stock and additional paid in capital as the underlying shares vest.
Technology and development
Technology and development expenses include personnel-related expenses incurred in operating, maintaining, and enhancing the Company’s platform and in developing new products and services. These costs also include website hosting and infrastructure expenses, and the amortization of internally developed and acquired developed technology. Certain costs of developing new products and services are capitalized to property and equipment, net.
Sales and marketing
Sales and marketing expenses primarily include personnel-related expenses, marketing programs costs, and costs related to customer acquisition. Sales and marketing costs are expensed as incurred.
General and administrative
General and administrative expenses include personnel-related expenses incurred to support the Company’s business, including executive, customer support, compliance, finance, human resources, legal, and other support operations. These costs also include software subscriptions for support services, facilities and equipment costs, depreciation, amortization of acquired customer relationship intangible assets, gains and losses on disposal of fixed assets, indirect taxes, accrued legal contingencies and settlements, and other general overhead. General and administrative costs are expensed as incurred.
Other operating expense, net
Other operating expense, net includes realized gains and losses resulting from the settlement of derivative instruments and fair value gains and losses related to derivatives and derivatives designated in qualifying fair value hedge accounting relationships.
Other operating expense, net also includes the cost of the Company’s crypto assets used to fulfill customer accommodation transactions. Periodically, as an accommodation to customers, the Company may fulfill customer transactions using its own crypto assets. The Company has custody and control of the crypto assets prior to the sale to the customer. Accordingly, the Company records the total value of the sale in other revenue and the cost of the crypto asset in other operating expense, net. Contributions towards political action committees are also included in other operating expense, net.
Other (income) expense, net
Other (income) expense, net includes net gains on the repurchase of certain of the Company’s long-term debt, realized foreign exchange gains and losses resulting from the settlement of the Company’s foreign currency assets and liabilities, and unrealized foreign exchange impacts resulting from remeasurement of transactions and monetary assets and liabilities denominated in non-functional currencies, and impairment recognized on certain strategic equity investments in privately held companies without readily determinable fair values and gains and losses on investments, net, which consists primarily of realized and unrealized gains and losses from fair value adjustments. Unrealized gains and losses from fair value adjustments on certain financial instruments are also included in other (income) expense, net.
Income taxes
The Company accounts for income taxes using the asset and liability method whereby deferred tax asset and liability account balances are determined based on temporary differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to affect taxable income. A valuation allowance is established when management estimates that it is more likely than not that deferred tax assets will not be realized. Realization of deferred tax assets is dependent upon future pre-tax earnings, the reversal of temporary differences between book and tax income, and the expected tax rates in future periods.
The Company is required to evaluate the tax positions taken in the course of preparing its tax returns to determine whether tax positions are more likely than not of being sustained by the applicable tax authority. Tax benefits of positions not deemed to meet the “more-likely-than-not” threshold would be recorded as a tax expense in the current year. The amount recognized is subject to estimate and management judgment with respect to the likely outcome of each uncertain tax position. The amount that is ultimately sustained for an individual uncertain tax position or for all uncertain tax positions in the aggregate could differ from the amount that is initially recognized. It is the Company’s practice to recognize interest and penalties related to income tax matters in income tax expense.
For U.S. federal tax purposes, crypto asset transactions are treated on the same tax principles as property transactions. The Company recognizes a gain or loss when crypto assets are exchanged for other property, in the amount of the difference between the fair market value of the property received and the tax basis of the exchanged crypto assets. Receipts of crypto assets in exchange for goods or services are included in taxable income at the fair market value on the date of receipt.
Net income (loss) per share
The Company computes net income (loss) per share using the two-class method required for participating securities. The two-class method requires income available to common stockholders for the period to be allocated between common stock and participating securities based upon their respective rights to receive dividends as if all income for the period had been distributed. The Company’s preferred stock and certain of its restricted common stock were deemed participating securities. These participating securities do not contractually require the holders of such shares to participate in the Company’s losses.
Basic net income (loss) per share is computed using the weighted-average number of outstanding shares of common stock during the period. Diluted net income (loss) per share is computed using the weighted-average number of outstanding shares of common stock and, when dilutive, potential shares of common stock outstanding during the period. Potential shares of common stock consist of incremental shares issuable upon the assumed exercise of stock options and warrants, vesting of RSUs, vesting of restricted common stock, conversion of the Company’s preferred stock and convertible notes, and settlement of contingent consideration.
Segment reporting
Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the Chief Operating Decision Maker (the “CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The Company’s Chief Executive Officer is the Company’s CODM. The CODM reviews financial information presented on a global consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. As such, the Company has determined that it operates as one operating segment and one reportable segment.
Recent accounting pronouncements
Accounting pronouncements pending adoption
On December 14, 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 requires that entities disclose specific categories in their rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. The new standard is effective for the Company beginning December 15, 2024, with early adoption permitted effective for fiscal years beginning January 1, 2024. The Company is currently evaluating the impact of adopting the standard.
On December 14, 2023, FASB issued Accounting Standards Update No. 2023-08, Accounting for and Disclosure of Crypto Assets (“ASU 2023-08”), which requires entities that hold crypto assets to subsequently measure such assets at fair value with changes recognized in net income each reporting period. The guidance also requires crypto assets measured at fair value to be presented separately from other intangible assets on the balance sheet and changes in the fair value measurement of crypto assets to be presented separately on the income statement from changes in the carrying amounts of other intangible assets. The new standard is effective for the Company beginning December 15, 2024, with early adoption permitted. The Company adopted ASU 2023-08 on January 1, 2024 and will apply the modified retrospective transition approach. While the Company is in the process of finalizing implementation, based on a preliminary assessment, the Company anticipates it will recognize an incremental $720 million to $760 million increase in fair value on crypto assets held with the corresponding cumulative-effect adjustment amount recorded to the opening balance of retained earnings.
On November 27, 2023, FASB issued Accounting Standards Update No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which requires that an entity disclose significant segment expenses impacting profit and loss that are regularly provided to the chief operating decision maker. The update is required to be applied retrospectively to prior periods presented, based on the significant segment expense categories identified and disclosed in the period of adoption. The amendments in ASU 2023-07 are required to be adopted for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of adopting the standard.
v3.24.0.1
RESTRUCTURING
 12 Months Ended
Dec. 31, 2023
Restructuring and Related Activities [Abstract]  
RESTRUCTURING RESTRUCTURING
2023 Restructuring
In January 2023, the Company announced and completed a restructuring impacting approximately 21% of the Company’s headcount as of December 31, 2022 (the “2023 Restructuring”). The 2023 Restructuring was intended to manage the Company’s operating expenses in response to the ongoing market conditions impacting the cryptoeconomy and ongoing business prioritization efforts. As a result, approximately 950 employees in various departments and locations were terminated. As part of their termination, they were given separation pay and other personnel benefits.
The Company does not expect to incur any additional charges in connection with the 2023 Restructuring and the cash payments associated with the restructuring were completed during the third quarter of 2023. The following expenses were recognized within restructuring expenses in the consolidated statements of operations during the year ended December 31, 2023 (in thousands):
Year Ended December 31, 2023
Separation pay$56,733 
Stock-based compensation(1)
84,042 
Other personnel costs1,819 
Total$142,594 
__________________
(1)Represents stock-based compensation expenditures for the year ended December 31, 2023 relating to the acceleration of the vesting of outstanding equity awards in accordance with the terms of such awards.
The following table summarizes the balance of the 2023 Restructuring reserve and the changes in the reserve as of and for the year ended December 31, 2023 (in thousands):
Expenses Incurred(1)
Payments
Adjustments(2)
Accrued Balance as of December 31, 2023
Separation pay$57,745 $(56,733)$(1,012)$— 
Other personnel costs2,702 (1,819)(883)— 
Total$60,447 $(58,552)$(1,895)$— 
_________________
(1)Excludes stock-based compensation as it was not reflected in the Company’s restructuring reserve on the consolidated balance sheets.
(2)Reductions of $1.0 million and $0.9 million during the year ended December 31, 2023 were due to the release of accruals for certain separation pay expenses and other personnel costs, respectively, recorded as of March 31, 2023, which were not utilized.

2022 Restructuring
In June 2022, the Company announced and completed a restructuring impacting approximately 18% of the Company’s headcount as of June 10, 2022 (the “2022 Restructuring”). This strategic reduction of the existing global workforce was intended to manage the Company’s operating expenses in response to market conditions and ongoing business prioritization efforts. As a result, approximately 1,100 employees in various departments and locations were terminated. As part of their termination, they were given separation pay and other personnel benefits. The Company did not incur any additional charges related to the 2022 Restructuring. The cash payments associated with the 2022 Restructuring were substantially completed during the third quarter of 2022 and the remaining balance was fully paid out during the year ended December 31, 2022.
The following expenses were recognized within restructuring expenses in the consolidated statements of operations for the year ended December 31, 2022 (in thousands):
Year Ended December 31, 2022
Separation pay$38,741 
Other personnel costs 1,962 
Total$40,703 


The following table summarizes the balance of the 2022 Restructuring reserve and the changes in the reserve as of and for the year ended December 31, 2022 (in thousands):
Expenses IncurredPaymentsAdjustmentsAccrued Balance as of December 31, 2022
Separation pay$39,259 $(38,741)$(518)$— 
Other personnel costs3,194 (1,962)(1,232)— 
Total$42,453 $(40,703)$(1,750)$— 
v3.24.0.1
ACQUISITIONS
 12 Months Ended
Dec. 31, 2023
Business Combination and Asset Acquisition [Abstract]  
ACQUISITIONS ACQUISITIONS
Information on acquisitions completed during the periods presented is set forth below. The impact of these acquisitions was not considered significant to the consolidated financial statements for the periods presented, and pro forma financial information has not been provided.
2023 acquisitions
One River Digital Asset Management, LLC
On March 3, 2023, the Company completed the acquisition of One River Digital Asset Management, LLC (“ORDAM”) by acquiring all issued and outstanding membership units of ORDAM. ORDAM is an institutional digital asset manager which is registered as an investment adviser with the SEC. The Company believes the acquisition aligns with the Company’s long-term strategy to unlock further opportunities for institutions to participate in the cryptoeconomy.
Prior to the acquisition, the Company held a minority ownership stake in ORDAM, which was accounted for as a cost method investment. In accordance with ASC Topic 805, Business Combinations, the acquisition was accounted for as a business combination achieved in stages under the acquisition method. Accordingly, the cost method investment was remeasured to fair value as of the acquisition date. As the fair value of the cost method investment was equal to its carrying value, no gain or loss on remeasurement was recorded on the acquisition date.
The purchase consideration was allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date with the excess recorded as goodwill. The goodwill balance is primarily attributed to the assembled workforce, market presence, synergies, and time-to-market advantages. 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 consideration transferred in the acquisition was $96.8 million, consisting of the following (in thousands):
Cash$30,830 
Cash payable1,005 
Previously-held interest on acquisition date20,000 
Class A common stock of the Company44,995 
   Total purchase consideration$96,830 
Included in the purchase consideration are $6.0 million in cash and 119,991 shares of the Company’s Class A common stock that are subject to an indemnity holdback. The cash and shares subject to the indemnity holdback will be released 18 months after the closing date of the transaction.
The results of operations and the provisional fair values of the assets acquired and liabilities assumed have been included in the consolidated financial statements as of the date of acquisition. The following table summarizes the preliminary fair values of assets acquired and liabilities assumed as of the date of acquisition (in thousands):
Goodwill$65,764 
Intangible assets, net21,100 
Other assets and liabilities, net9,966 
Net assets acquired$96,830 
The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in thousands, except for years data):
Fair ValueUseful Life at Acquisition (in years)
Licenses$1,100 Indefinite
Customer relationships17,100 6
In-process research and development (“IPR&D”)2,900 N/A
Customer relationships will be amortized on a straight-line basis over their respective useful lives to general and administrative expense. The licenses have an indefinite useful life and will not be amortized. Management applied significant judgment in determining the fair value of intangible assets, which involved the use of estimates and assumptions with respect to forecasted revenues and expenses, and costs to recreate the IPR&D and obtain the licenses.
Total acquisition costs of $2.6 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.
2022 acquisitions
Unbound Security, Inc.
On January 4, 2022, the Company completed the acquisition of Unbound Security, Inc. (“Unbound”) by acquiring all issued and outstanding shares of capital stock and stock options of Unbound. Unbound is a pioneer in a number of cryptographic security technologies, which the Company believes will play a key role in the Company’s product and security roadmap.
In accordance with ASC Topic 805, Business Combinations, the acquisition was accounted for as a business combination under the acquisition method. The purchase consideration was allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date with the excess recorded as goodwill, none of which is expected to be deductible for tax purposes. The goodwill balance is primarily attributed to the assembled workforce, synergies, and the use of purchased technology to develop future products and technologies. During the year ended December 31, 2022, a measurement period adjustment associated with deferred tax assets was recorded, resulting in an increase in other non-current assets of $4.1 million and a corresponding reduction in goodwill.
The total consideration transferred in the acquisition was $258.0 million, consisting of the following (in thousands):
Cash$151,424 
Cash payable126 
Class A common stock of the Company103,977 
RSUs for shares of the Company’s Class A common stock2,457 
Total purchase consideration$257,984 
Included in the purchase consideration are $21.7 million in cash and 85,324 shares of the Company’s Class A common stock that were subject to an indemnity holdback. The cash and shares subject to the indemnity holdback were released within 18 months from the closing date of the transaction.
The results of operations and the fair values of the assets acquired and liabilities assumed have been included in the consolidated financial statements from the date of acquisition. The following table summarizes the preliminary fair values of assets acquired and liabilities assumed as of the date of acquisition (in thousands):
Goodwill$222,732 
Intangible assets28,500 
Other assets and liabilities, net6,752 
Net assets acquired$257,984 
The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in thousands, except for years data):
Fair ValueUseful Life at Acquisition (in Years)
Developed technology$15,700 
1 - 5
IPR&D2,500 N/A
Customer relationships10,300 2
The intangible assets will be amortized on a straight-line basis over their respective useful lives to technology and development expenses for developed technology and general and administrative expenses for customer relationships. Amortization of the IPR&D will be recognized in technology and development expenses once the research and development is placed into service as internally developed software. Management applied significant judgment in determining the fair value of intangible assets, which involved the use of estimates and assumptions with respect to development costs and profit, costs to recreate customer relationships, market participation profit, and opportunity cost.
Total acquisition costs of $3.0 million were incurred in relation to the acquisition, which were recognized as an expense and included in general and administrative expenses in the consolidated statements of operations.
FairXchange, Inc.
On February 1, 2022, the Company completed the acquisition of FairXchange, Inc. (“FairX”) by acquiring all issued and outstanding shares of capital stock, stock options and warrants of FairX. FairX is a derivatives exchange which is registered with the U.S. Commodity Futures Trading Commission as a designated contract market (“DCM”) and the Company believes it has been a key stepping stone on the Company’s path to offer crypto derivatives to consumers and institutional customers in the United States.
In accordance with ASC Topic 805, Business Combinations, the acquisition was accounted for as a business combination under the acquisition method. The purchase consideration was allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date with the excess recorded as goodwill, none of which is expected to be deductible for tax purposes. The goodwill balance is primarily attributed to the assembled workforce, market presence, synergies, and the use of purchased technology to develop future products and technologies. During the year ended December 31, 2022, a measurement period adjustment associated with deferred tax assets was recorded, resulting in an increase in other non-current assets of $0.3 million and a corresponding reduction in goodwill.
The total consideration transferred in the acquisition was $275.1 million, consisting of the following (in thousands):
Cash$56,726 
Cash payable10,442 
Class A common stock of the Company - issued174,229 
Class A common stock of the Company - to be issued33,693 
Total purchase consideration$275,090 
The aggregate purchase consideration includes 170,397 shares of the Company’s Class A common stock to be issued after the acquisition date. The fair value of these shares on the acquisition date is included in additional paid-in capital. Additionally, included in the purchase consideration are $4.7 million in cash and 83,035 shares of the Company’s Class A common stock that are subject to an indemnity holdback. The cash and shares remain subject to an indemnity holdback.
The results of operations and the fair values of the assets acquired and liabilities assumed have been included in the consolidated financial statements from the date of acquisition. The following table summarizes the preliminary fair values of assets acquired and liabilities assumed as of the date of acquisition (in thousands):
Goodwill$231,685 
Intangible assets41,000 
Other assets and liabilities, net2,405 
Net assets acquired$275,090 
The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in thousands, except for years data):
Fair ValueUseful Life at Acquisition (in Years)
DCM License$26,900 Indefinite
Developed technology10,700 5
Trading relationships3,400 3
The developed technology and trading relationships will be amortized on a straight-line basis over their respective useful lives to technology and development expenses for developed technology and general and administrative for trading relationships. The DCM license has an indefinite useful life and will not be amortized. Management applied significant judgment in determining the fair value of intangible assets, which involved the use of estimates and assumptions with respect to forecasted revenues and expenses, development costs and profit, costs to recreate trading relationships, market participation profit, and opportunity cost.
Total acquisition costs of $1.1 million were incurred related to the acquisition, which were recognized as an expense and included in general and administrative expenses in the consolidated statements of operations.
2021 acquisitions
Bison Trails
On February 8, 2021, the Company completed the acquisition of Bison Trails Co. (“Bison Trails”) by acquiring all issued and outstanding common stock and stock options of Bison Trails. Bison Trails is a platform-as-a-service company that provides a suite of easy-to-use blockchain infrastructure products and services on multiple networks to custodians, exchanges and funds.
Prior to the acquisition, the Company held a minority ownership stake in Bison Trails, which was accounted for as a cost method investment. In accordance with ASC Topic 805, Business Combinations, the acquisition was accounted for as a business combination achieved in stages under the acquisition method. Accordingly, the cost method investment was remeasured to fair value as of the acquisition date. The Company considered multiple factors in determining the fair value of the previously held cost method investment, including the price negotiated with the selling shareholders and current trading multiples for comparable companies. Based on this analysis, the Company recognized an $8.8 million gain on remeasurement, which was recorded in other expense (income), net in the consolidated statements of operations on the acquisition date.
The purchase consideration was allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date with the excess recorded as goodwill, none of which is expected to be deductible for tax purposes. The goodwill balance is primarily attributed to the assembled workforce, market presence, synergies, and the use of purchased technology to develop future products and technologies.
The total consideration transferred in the acquisition was $457.3 million, consisting of the following (in thousands):
Class A common stock of the Company$389,314 
Previously held interest on acquisition date10,863 
Cash28,726 
Replacement of Bison Trails options28,365 
Total purchase consideration$457,268 
Included in the purchase consideration are 496,434 shares of the Company’s Class A common stock that are subject to an indemnity holdback. The shares subject to the indemnity holdback were released 18 months after the closing date of the transaction.
The results of operations and the fair values of the assets acquired and liabilities assumed have been included in the consolidated financial statements from the date of acquisition. The following table summarizes the estimated fair values of assets acquired and liabilities assumed using a cost-based approach (in thousands):
Goodwill$404,167 
Intangible assets39,100 
Other assets and liabilities, net14,001 
Net assets acquired$457,268 
The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in thousands, except for years data):
Fair ValueUseful Life at Acquisition (in Years)
Developed technology$36,000 3
IPR&D1,200 N/A
User base1,900 3
The intangible assets will be amortized on a straight-line basis over their respective useful lives to technology and development expenses for developed technology and general and administrative expenses for user base. Amortization of the IPR&D will be recognized in technology and development expenses once the research and development is placed into service as internally developed software. Management applied significant judgement in determining the fair value of intangible assets, which involved the use of estimates and assumptions with respect to development costs and profit, costs to recreate customer relationships, market participation profit, and opportunity cost.
Total acquisition costs of $3.7 million were incurred related to the acquisition, which were recognized as an expense and included in general and administrative expenses in the consolidated statements of operations.
Other acquisitions
During the year ended December 31, 2021, the Company also completed five other acquisitions that were not material individually, but were material when aggregated. In each of these acquisitions the Company acquired all issued and outstanding common stock and stock options of the acquiree.
The total purchase consideration in each acquisition was allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition dates, with the excess recorded as goodwill. During the year ended December 31, 2022, measurement period adjustments associated with deferred tax assets were recorded, resulting in an increase in other non-current assets of $1.9 million and a corresponding reduction in goodwill.
The total consideration transferred in these acquisitions was $211.0 million, consisting of the following (in thousands):
Class A common stock of the Company - issued
$65,717 
Class A common stock of the Company - to be issued
58,173 
RSUs3,019 
Cash62,425 
Cash payable5,918 
Contingent consideration arrangement15,752 
Total purchase consideration
$211,004 
The aggregate purchase consideration included 160,840 shares of the Company’s Class A common stock which was issued six months after the respective acquisition dates. The fair value of these shares on the respective acquisition dates was included in additional paid-in capital. Additionally, 51,619 shares of the Company’s Class A common stock included in the aggregate purchase consideration that are to be issued, are subject to an indemnity holdback. The shares subject to the indemnity holdback were released between 15 and 18 months after the closing date of each transaction.
Also included in the aggregate purchase consideration was the original estimated fair value of the contingent consideration arrangement agreed to in one of the acquisitions. The contingent consideration consists of two separate tranches. The first tranche will be settled one year after the closing date of the transaction and may result in delivery of up to 75,534 shares of the Company’s Class A common stock if specified revenue targets are met during the first year after the closing date. The second tranche will be settled two years after the closing date of the transaction and may result in delivery of up to another 75,534 shares of the Company’s Class A common stock, if specified revenue targets are met during the second year after the closing date. For each tranche, the revenue targets are adjusted for changes in the combined Bitcoin and Ethereum market capitalization since the closing date. The total number of the Company’s Class A common stock issued to settle the contingent consideration arrangement will be adjusted downward in proportion to recognized revenues that do not meet the specified revenue targets.
In September 2022 and October 2023, upon resolution of the contingencies and determination of the number of shares of the Company’s Class A common stock to be issued under the first and second tranche of the contingent consideration arrangement, respectively, the Company reclassified the value of the first and second tranches from other non-current liabilities into additional paid-in capital on the consolidated balance sheets.
The results of operations and the fair values of the assets acquired and liabilities assumed have been included in the consolidated financial statements from the respective dates of acquisition. The following table summarizes the aggregate estimated fair values of assets acquired and liabilities assumed using a cost-based approach (in thousands):
Goodwill$144,379 
Intangible assets62,100 
Other assets and liabilities, net4,525 
Net assets acquired$211,004 
The excess of aggregate purchase consideration over the fair value of net tangible and identifiable intangible assets acquired was recorded as goodwill of $144.4 million, of which $77.1 million is expected to be deductible for U.S. tax purposes. The goodwill balance is primarily attributed to the assembled workforce, market presence, synergies, and the use of purchased technology to develop future products and technologies.
The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the dates of acquisition (in thousands, except for years data):
Fair ValueUseful Life at Acquisition (in Years)
Developed technology$45,900 2.5
User base1,000 2.5
IPR&D2,300 N/A
Customer relationships12,900 4.3
The intangible assets will be amortized on a straight-line basis over their respective useful lives to technology and development expenses for developed technology and general and administrative expenses for customer relationships and user base. Amortization of the IPR&D will be recognized in technology and development expenses once the research and development is placed into service as internally developed software. Management applied significant judgement in determining the fair value of intangible assets, which involved the use of estimates and assumptions with respect to development costs and profit, costs to recreate customer relationships, market participation profit, and opportunity cost. These valuations incorporate significant unobservable inputs classified as Level 3.
Total acquisition costs of $4.3 million were incurred related to these other acquisitions, which were recognized as expenses and included in general and administrative expenses in the consolidated statements of operations. The Company also entered into employment agreements with key employees of the acquirees, which included stock-based compensation arrangements. In conjunction with these agreements, the Company recognized $5.5 million of compensation expenses on the acquisition dates included in technology and development expenses. Stock-based compensation arrangements offered to these key employees with vesting conditions will be recognized as compensation expense in future periods. See Note 18. Stock-Based Compensation, for additional details regarding stock-based compensation issued to employees.
v3.24.0.1
REVENUE
 12 Months Ended
Dec. 31, 2023
Revenue from Contract with Customer [Abstract]  
REVENUE REVENUE
The following table presents revenue of the Company disaggregated by revenue source (in thousands):
Year Ended December 31,
202320222021
Net revenue
Transaction revenue
Consumer, net$1,429,490 $2,236,900 $6,490,992 
Institutional, net90,164 119,344 346,274 
Total transaction revenue1,519,654 2,356,244 6,837,266 
Subscription and services revenue
Stablecoin revenue694,247 245,710 9,882 
Blockchain rewards330,885 275,507 223,055 
Interest income173,914 81,246 15,953 
Custodial fee revenue69,501 79,847 136,293 
Other subscription and services revenue138,339 110,261 132,304 
Total subscription and services revenue1,406,886 792,571 517,487 
Total net revenue2,926,540 3,148,815 7,354,753 
Other revenue
Corporate interest and other income181,827 44,768 2,141 
Crypto asset sales revenue16 625 482,550 
Total other revenue181,843 45,393 484,691 
Total revenue$3,108,383 $3,194,208 $7,839,444 
Revenue by geographic location
In the table below are the revenues disaggregated by geography, based on domicile of the customers, as applicable (in thousands):
Year Ended December 31,
202320222021
United States$2,725,620 $2,684,425 $6,339,270 
Rest of the World(1)
382,763 509,783 1,500,174 
     Total revenue$3,108,383 $3,194,208 $7,839,444 
__________________
(1)No other individual country accounted for more than 10% of total revenue.
v3.24.0.1
ACCOUNTS AND LOANS RECEIVABLE, NET OF ALLOWANCE
 12 Months Ended
Dec. 31, 2023
Receivables [Abstract]  
ACCOUNTS AND LOANS RECEIVABLE, NET OF ALLOWANCE ACCOUNTS AND LOANS RECEIVABLE, NET OF ALLOWANCE
Accounts and loans receivable, net of allowance consisted of the following (in thousands):
December 31,December 31,
20232022
Accounts receivable
Stablecoin revenue receivable$57,885 $179,996 
Customer fee revenue receivable(1)
23,603 23,014 
Other accounts receivable(1)
109,361 28,837 
Gross accounts receivable190,849 231,847 
Allowance for doubtful accounts receivable
(22,559)(11,500)
Net accounts receivable168,290 220,347 
Loans receivable(2)
Fiat loans receivable(3)
171,196 98,203 
Crypto asset loans receivable22,229 85,826 
Total loans receivable193,425 184,029 
Total accounts and loans receivable, net of allowance$361,715 $404,376 
__________________
(1)Includes accounts receivable denominated in crypto assets. See Note 15. Derivatives for additional details.
(2)As of December 31, 2023 and 2022, loans receivable did not include $205.6 million and $2.8 million of USDC loaned, respectively, as these loaned assets did not meet the criteria for derecognition.
(3)As of December 31, 2023, the entire balance comprised institutional fiat loans, while as of December 31, 2022, the entire balance comprised consumer fiat loans. Consumer fiat loans were discontinued in November 2023.

As of December 31, 2023 and 2022, there were no loans receivable past due.
ACCOUNTS AND LOANS RECEIVABLE, NET OF ALLOWANCE ACCOUNTS AND LOANS RECEIVABLE, NET OF ALLOWANCE
Accounts and loans receivable, net of allowance consisted of the following (in thousands):
December 31,December 31,
20232022
Accounts receivable
Stablecoin revenue receivable$57,885 $179,996 
Customer fee revenue receivable(1)
23,603 23,014 
Other accounts receivable(1)
109,361 28,837 
Gross accounts receivable190,849 231,847 
Allowance for doubtful accounts receivable
(22,559)(11,500)
Net accounts receivable168,290 220,347 
Loans receivable(2)
Fiat loans receivable(3)
171,196 98,203 
Crypto asset loans receivable22,229 85,826 
Total loans receivable193,425 184,029 
Total accounts and loans receivable, net of allowance$361,715 $404,376 
__________________
(1)Includes accounts receivable denominated in crypto assets. See Note 15. Derivatives for additional details.
(2)As of December 31, 2023 and 2022, loans receivable did not include $205.6 million and $2.8 million of USDC loaned, respectively, as these loaned assets did not meet the criteria for derecognition.
(3)As of December 31, 2023, the entire balance comprised institutional fiat loans, while as of December 31, 2022, the entire balance comprised consumer fiat loans. Consumer fiat loans were discontinued in November 2023.

As of December 31, 2023 and 2022, there were no loans receivable past due.
v3.24.0.1
LEASES
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
LEASES LEASES
The Company has operating leases for corporate offices. The leases have remaining lease terms of less than one year to three years. The leases generally contain options to extend or terminate the lease. However, these were not included in determining the lease terms as the Company is not reasonably certain to exercise those options.
The components of lease cost were as follows (in thousands):
Year Ended December 31,
202320222021
Operating lease cost$40,429 $36,724 $34,074 
Short-term lease cost4,304 707 374 
Total lease cost$44,733 $37,431 $34,448 
Other information related to leases was as follows as of:
December 31,
20232022
Weighted-average remaining lease term (in years)1.51.2
Weighted-average discount rate4.05 %3.01 %
The interest rate used to determine the present value of the future lease payments is the Company’s incremental borrowing rate because the interest rate implicit in the leases is not readily determinable. The Company’s incremental borrowing rate is estimated to approximate the interest rate on a collateralized basis with similar terms and payments, and in economic environments where the leased asset is located.
Maturities of lease liabilities were as follows (in thousands):
2024$11,235 
20253,124 
2026792 
Total lease payments15,151 
Less imputed interest(428)
Total$14,723 
430 California office space
In February 2023, the Company entered into an early termination agreement for its remaining office space lease in San Francisco, California, which terminated on March 31, 2023. The Company paid a termination fee of $25.0 million and committed to spend $2.0 million at the lessor’s other properties by March 31, 2025. These expenses were recognized within the general and administration expenses in the consolidated statements of operations during the year ended December 31, 2023.
v3.24.0.1
PROPERTY AND EQUIPMENT, NET
 12 Months Ended
Dec. 31, 2023
Property, Plant and Equipment [Abstract]  
PROPERTY AND EQUIPMENT, NET PROPERTY AND EQUIPMENT, NET
Property and equipment consisted of the following (in thousands):
December 31,
20232022
Capitalized software$293,467 $198,537 
Leasehold improvements17,131 45,262 
Furniture and fixtures125 7,217 
Computers and equipment2,554 5,852 
Total property and equipment, gross
313,277 256,868 
Accumulated depreciation and amortization(120,727)(85,015)
Total property and equipment, net
$192,550 $171,853 
Depreciation and amortization expense was $70.0 million, $48.0 million, and $18.4 million for the years ended December 31, 2023, 2022 and 2021, respectively. Total additions to capitalized software were $112.0 million, $178.6 million and $22.2 million for the years ended December 31, 2023, 2022 and 2021, respectively. During the years ended December 31, 2023, 2022 and 2021, the Company recorded impairment charges of $18.3 million, $21.8 million, and $0, respectively, related to its property and equipment. Impairment expense is included in other operating expense, net in the consolidated statements of operations.
Long-lived assets, which consisted of property and equipment, net and operating lease ROU assets, by geography were as follows (in thousands):
December 31,
20232022
United States$198,810 $229,737 
Rest of the World(1)
6,477 11,473 
Total long-lived assets$205,287 $241,210 
________________
(1)No other individual country accounted for more than 10% of total long-lived assets.
v3.24.0.1
GOODWILL, INTANGIBLE ASSETS, NET AND CRYPTO ASSETS HELD
 12 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL, INTANGIBLE ASSETS, NET AND CRYPTO ASSETS HELD GOODWILL, INTANGIBLE ASSETS, NET, AND CRYPTO ASSETS HELD
Goodwill
The following table reflects the changes in the carrying amount of goodwill (in thousands):
Year Ended December 31,
20232022
Balance, beginning of period$1,073,906 $625,758 
Additions due to business combinations65,764 454,417 
Measurement period adjustments(1)
— (6,269)
Balance, end of period$1,139,670 $1,073,906 
__________________
(1)The measurement period adjustments during the year ended December 31, 2022 consisted of $4.1 million, $0.3 million and $1.9 million related to the Unbound acquisition, the FairX acquisition, and certain other acquisitions that were material when aggregated, respectively, and which were associated with the changes in deferred tax assets as a result of changes in estimates. There were no measurement period adjustments during the year ended December 31, 2023.
There was no impairment recognized against goodwill at the beginning or end of the periods presented.
Intangible assets, net
Intangible assets, net and their associated weighted average remaining useful lives (“Life”) consisted of the following (in thousands, except years data):
December 31, 2023December 31, 2022
Gross Carrying AmountAccumulated AmortizationIntangible Assets, NetLifeGross Carrying AmountAccumulated AmortizationIntangible Assets, NetLife
Amortizing intangible assets
Acquired developed technology$124,291 $(105,139)$19,152 2.5$126,692 $(81,172)$45,520 2.3
Customer relationships103,791 (66,279)37,512 3.186,691 (45,717)40,974 2.6
Assembled workforce60,800 (60,800)— 060,800 (44,857)15,943 0.4
Other5,802 (4,294)1,508 1.010,676 (4,834)5,842 1.7
Indefinite-lived intangible assets
Licenses28,000 — 28,000 N/A26,900 — 26,900 N/A
Other250 — 250 N/A250 — 250 N/A
        Total$322,934 $(236,512)$86,422 $312,009 $(176,580)$135,429 

Amortization expense of intangible assets was $69.6 million, $106.1 million and $45.3 million for the years ended December 31, 2023, 2022 and 2021, respectively. The Company estimates that there is no significant residual value related to its amortizing intangible assets.
The Company recorded no material intangible asset impairment charges during the years ended December 31, 2023, 2022 and 2021. Impairment expense is included in technology and development expense in the consolidated statements of operations.
The expected future amortization expense for amortizing intangible assets as of December 31, 2023 is as follows (in thousands):
202425,649 
202517,400 
20268,782 
20273,026 
20282,855 
Thereafter460 
Total expected future amortization expense$58,172 
Crypto assets held
Crypto assets held consisted of the following (in thousands):
December 31,December 31,
20232022
Recorded at impaired cost
Crypto assets held as investments$330,610 $155,251 
Crypto assets held for operating purposes74,103 67,577 
Total crypto assets held recorded at impaired cost404,713 222,828 
Recorded at fair value(1)
Crypto assets held as investments— 133,416 
Crypto assets borrowed45,212 68,149 
Total crypto assets held recorded at fair value45,212 201,565 
Total crypto assets held$449,925 $424,393 
__________________
(1)Recorded at fair value as these crypto assets are held as the hedged item in qualifying fair value hedges.

Crypto asset impairment, net comprised the following (in thousands):
Year Ended December 31,
202320222021
Gross crypto asset impairment expense$96,783 $757,257 $329,152 
Recoveries(131,458)(35,046)(175,992)
Crypto asset impairment, net$(34,675)$722,211 $153,160 
The Company records gross impairment charges when the observed market price of crypto assets held decreases below the carrying value. The Company may later recover impairments through subsequent crypto asset sales and disposals. Collectively, these activities are shown as crypto asset impairment, net in the consolidated statements of operations.
See Note 15. Derivatives, for additional details regarding crypto assets held designated as hedged items in fair value hedges. See Note 16. Fair Value Measurements, for additional details regarding the carrying value of the Company’s crypto assets held that are recorded at fair value.
When the Company borrows crypto assets, it may be required to pledge collateral to maintain a required collateral percentage. See Note 13. Collateral, for additional details regarding assets pledged as collateral.
v3.24.0.1
CUSTOMER ASSETS AND LIABILITIES
 12 Months Ended
Dec. 31, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
CUSTOMER ASSETS AND LIABILITIES CUSTOMER ASSETS AND LIABILITIES
The following table presents customers’ cash and safeguarded crypto positions (in thousands):
December 31,December 31,
20232022
Customer custodial funds$4,570,845 $5,041,119 
Safeguarding customer crypto assets192,583,060 75,413,188 
Total customer assets$197,153,905 $80,454,307 
Customer custodial cash liabilities$4,570,845 $4,829,587 
Safeguarding customer crypto liabilities192,583,060 75,413,188 
Total customer liabilities$197,153,905 $80,242,775 

During the years ended December 31, 2023 and 2022, no losses were incurred in connection with safeguarding customer crypto assets.
The following table sets forth the fair values of safeguarding customer crypto assets that were greater than 5% of the total safeguarding customer crypto assets recorded, as shown on the consolidated balance sheets (in thousands, except percentages):
December 31, 2023December 31, 2022
Fair Value
Percentage of Total(1)
Fair Value
Percentage of Total(1)
Bitcoin$89,864,637 47 %$32,468,926 43 %
Ethereum(2)
40,200,059 21 %20,858,121 28 %
Solana12,906,278 6 %1,233,451 1 %
Other crypto assets49,612,086 26 %20,852,690 28 %
Total safeguarding customer crypto assets$192,583,060 100 %$75,413,188 100 %
__________________
(1)As of December 31, 2023 and 2022, no assets other than Bitcoin, Ethereum, and Solana individually represented more than 5% of total safeguarding customer crypto assets.
(2)As of December 31, 2023 and 2022, Ethereum included $10.1 billion and $3.0 billion, respectively, of staked Ethereum.

See Note 16. Fair Value Measurements, for additional details regarding the safeguarding customer crypto assets and safeguarding customer crypto liabilities.
v3.24.0.1
PREPAID EXPENSES AND OTHER CURRENT AND NON-CURRENT ASSETS
 12 Months Ended
Dec. 31, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
PREPAID EXPENSES AND OTHER CURRENT AND NON-CURRENT ASSETS 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):    
December 31,December 31,
20232022
Prepaid expenses and other current assets
Prepaid expenses$79,552 $98,204 
Assets pledged as collateral(1)
53,071 100,007 
Other16,191 18,837 
Total prepaid expenses and other current assets$148,814 $217,048 
Other non-current assets
Strategic investments(2)
$343,045 $326,683 
Deposits16,250 10,989 
Other3,590 17,257 
Total other non-current assets$362,885 $354,929 
_______________
(1) Includes $51.9 million and $58.4 million as of December 31, 2023 and 2022, respectively, of the right to receive a fixed amount of USDC and BTC pledged as collateral. See Note 13. Collateral, for additional details on assets pledged as collateral.
(2) Includes $12.7 million and $11.4 million as of December 31, 2023 and 2022, respectively, of strategic investments in tokens and debt securities that are recorded at their impaired cost basis.

The Company acquired a 50% interest in Centre Consortium LLC (“Centre”) during August 2019. The Company had significant influence over the entity, but did not have power or control. The investment was included in Other under other non-current assets in the table above. On August 18, 2023, the Company entered into a share transfer agreement to exchange its 50% interest in Centre to its joint venture partner, Circle US Holdings, Inc., for 3.5% of the fully diluted equity of Circle Internet Financial Limited at an estimated fair value of $51.1 million, which is included in strategic investments in the tables within this Note and is accounted for under the measurement alternative. In connection with this transaction, the Centre joint venture was terminated, and the Company recorded a gain of $49.9 million, which is included in other (income) expense, net in the consolidated statement of operations during the year ended December 31, 2023.
Measurement alternative investments
The changes in the carrying value of strategic investments accounted for under the measurement alternative are presented below (in thousands):
Year Ended December 31,
20232022
Carrying amount, beginning of period$315,285 $352,431 
Net additions(1)
60,979 62,975 
Upward adjustments62 900 
Previously held interest in ORDAM (see Note 4)(20,000)— 
Impairments and downward adjustments(25,980)(101,021)
Carrying amount, end of period$330,346 $315,285 
__________________
(1)Net additions include additions from purchases and reductions due to exits of securities and reclassifications due to changes to capital structure.

Upward adjustments, impairments, and downward adjustments from remeasurement of investments are included in other (income) expense, net in the consolidated statements of operations. As of December
31, 2023, cumulative upward adjustments for investments held as of that date were $4.9 million and cumulative impairments and downward adjustments were $127.0 million. As of December 31, 2022, cumulative upward adjustments for investments held as of that date were $4.9 million and cumulative impairments and downward adjustments were $102.0 million.
v3.24.0.1
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
 12 Months Ended
Dec. 31, 2023
Payables and Accruals [Abstract]  
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES
Accrued expenses and other current liabilities consisted of the following (in thousands):
December 31,December 31,
20232022
Accrued payroll and payroll related$224,237 $90,257 
Other accrued expenses89,254 75,532 
Income taxes payable17,366 5,534 
Obligation to return collateral(1)
1,063 26,874 
Short-term borrowings— 20,519 
Other payables(2)
115,130 112,520 
Total accrued expenses and other current liabilities$447,050 $331,236 
__________________
(1)See Note 13. Collateral for additional details on obligation to return collateral.
(2)Includes other payables denominated in crypto assets. See Note 15. Derivatives for additional details.

Short-term borrowings include borrowings with open terms or amounts payable within the next 12 months or sooner at the option of the Company or the lender. The weighted average interest rate on these borrowings was 4.49% per annum as of December 31, 2022.
v3.24.0.1
COLLATERAL
 12 Months Ended
Dec. 31, 2023
Receivables [Abstract]  
COLLATERAL COLLATERAL
Company assets pledged as collateral
The Company’s assets pledged as collateral and recognized within prepaid expenses and other current assets in the consolidated balance sheets, consisted of the following (in thousands, except units):
December 31, 2023December 31, 2022
UnitsFair ValueUnitsFair Value
USDC(1)
51,879,705 $51,880 47,633,897 $47,634 
Bitcoin(2)
— — 650 10,743 
FiatN/A1,191 N/A41,630 
Total$53,071 $100,007 
_________________
(1) As of December 31, 2023 and 2022, the Company had pledged USDC that served exclusively as collateral for certain crypto asset borrowings with a fair value of at least 100% of the loan amount outstanding.
(2) As of December 31, 2022, the Company had pledged Bitcoin that served exclusively as collateral for fiat loans with a fair value of at least 110% of the loan amount outstanding. No Bitcoin was pledged as collateral as of December 31, 2023.

The Company had $29.6 million and $0 of USDC collateral pledged as of December 31, 2023 and 2022, respectively, not included in the table above nor recognized as assets pledged as collateral in the consolidated balance sheets as they did not meet the derecognition criteria.
See the consolidated balance sheets, Note 2. Summary of Significant Accounting Policies, and Note 15. Derivatives for information on the borrowings associated with this collateral. The aggregate carrying value of these borrowings and related derivatives was $63.0 million and $151.5 million, as of December 31, 2023 and 2022, respectively.
Borrower assets pledged as collateral
The Company’s obligation to return borrower collateral, which is included within accrued expenses and other current liabilities in the consolidated balance sheets, by type of asset pledged as collateral, consisted of the following (in thousands, except units):
December 31, 2023December 31, 2022
UnitsFair ValueUnitsFair Value
USDC— $— 26,873,830 $26,874 
FiatN/A1,063 N/A— 
Total
$1,063 $26,874 
The Company did not rehypothecate the collateral above at either date, though it had the right to do so.
The Company had $712.6 million and $136.0 million of collateral assets pledged by borrowers as of December 31, 2023 and 2022, respectively, denominated in USDC, fiat, or crypto assets where the Company did not have a right to use the collateral or the collateral did not meet the recognition criteria. These amounts are not included in the table above nor in the consolidated balance sheets as the collateral did not meet the recognition criteria.
See Note 6. Accounts and loans receivable, net of allowance for information on the loans associated with this collateral.
v3.24.0.1
INDEBTEDNESS
 12 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
INDEBTEDNESS INDEBTEDNESS
The components of indebtedness were as follows as of December 31, 2023 (in thousands, except percentages):
IndebtednessEffective Interest RatePrincipal AmountUnamortized Debt Discount and Issuance CostsNet Carrying Amount
0.50% 2026 Convertible Notes due on June 1, 2026
0.98 %$1,273,013 $(15,378)$1,257,635 
3.38% 2028 Senior Notes due on October 1, 2028
3.57 %1,000,000 (8,218)991,782 
3.63% 2031 Senior Notes due on October 1, 2031
3.77 %737,457 (6,917)730,540 
Total$3,010,470 $(30,513)$2,979,957 
The components of indebtedness were as follows as of December 31, 2022 (in thousands, except percentages):
IndebtednessEffective Interest RatePrincipal AmountUnamortized Debt Discount and Issuance CostsNet Carrying Amount
0.50% 2026 Convertible Notes due on June 1, 2026
0.98 %$1,437,500 $(23,339)$1,414,161 
3.38% 2028 Senior Notes due on October 1, 2028
3.57 %1,000,000 (10,022)989,978 
3.63% 2031 Senior Notes due on October 1, 2031
3.77 %1,000,000 (10,691)989,309 
Total$3,437,500 $(44,052)$3,393,448 
Convertible senior notes
In May 2021, the Company issued an aggregate principal amount of $1.4 billion of convertible senior notes due in 2026 (the “2026 Convertible Notes”) pursuant to an indenture, dated May 18, 2021 (the “Convertible Notes Indenture”), between the Company and U.S. Bank National Association, as trustee. The 2026 Convertible Notes were offered and sold in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the “Securities Act”).
The 2026 Convertible Notes are senior unsecured obligations of the Company and bear interest at a rate of 0.50% per year payable semi-annually in arrears on June 1 and December 1 of each year, beginning on December 1, 2021. The 2026 Convertible Notes mature on June 1, 2026, unless earlier converted, redeemed or repurchased. The proceeds received of $1.4 billion were net of a 1% original issue discount. In June 2023, the Company paid $45.5 million to repurchase $64.5 million of aggregate principal amount of the 2026 Convertible Notes with a carrying value of $63.6 million, net of unamortized issuance costs and original issue discount of $0.9 million and legal fees of $0.3 million. In November 2023, the Company paid $80.9 million to repurchase $100.0 million of aggregate principal amount of the 2026 Convertible Notes with a carrying value of $98.8 million, net of unamortized issuance costs and original issue discount of $1.2 million. The Company recorded a corresponding net gain on extinguishment of long-term debt during the year ended December 31, 2023 of $35.8 million in other (income) expense, net within the consolidated statements of operations.
The initial conversion rate and conversion rate for the 2026 Convertible Notes is 2.6994 shares of the Company's Class A common stock per $1,000 principal amount of 2026 Convertible Notes, which is equivalent to an initial conversion price of approximately $370.45 per share of the Class A common stock. The conversion rate and conversion price are subject to customary adjustments under certain circumstances in accordance with the terms of the Convertible Notes Indenture.
The 2026 Convertible Notes will be convertible at the option of the holders before December 1, 2025 only upon the occurrence of certain events, and from and after December 1, 2025, at any time at their election until the close of business on the second scheduled trading day immediately preceding June 1, 2026, only under certain circumstances. Upon conversion, the Company may satisfy its conversion obligation by paying or delivering, as applicable, cash, shares of the Company’s Class A common stock or a combination of cash and shares of the Company’s Class A common stock, at the Company’s election, based on the applicable conversion rate. In addition, if certain corporate events that constitute a make-whole fundamental change (as defined in the Convertible Notes Indenture) occur, then the conversion rate will, in certain circumstances, be increased for a specified period of time. Additionally, in the event of a corporate event constituting a fundamental change (as defined in the Convertible Notes Indenture), holders of the 2026 Convertible Notes may require the Company to repurchase all or a portion of their 2026 Convertible Notes at a repurchase price equal to 100% of the principal amount of the 2026 Convertible Notes being repurchased, plus accrued and unpaid special interest or additional interest, if any, to, but excluding, the date of the fundamental change repurchase.
Discounts on the 2026 Convertible Notes reflect a 1% original issue discount of $14.4 million and debt issuance costs related to the 2026 Convertible Notes of $19.4 million, which include commissions payable to the initial purchasers and third-party offering costs.
Capped calls
On May 18, 2021, in connection with the pricing of the 2026 Convertible Notes, the Company entered into privately negotiated capped call transactions (the “Capped Calls”) with certain financial institutions (the “option counterparties”) at a cost of $90.1 million. The Capped Calls cover, subject to customary adjustments, the number of shares of the Company’s Class A common stock initially underlying the 2026 Convertible Notes. By entering into the Capped Calls, the Company expects to reduce the potential dilution to its Class A common stock (or, in the event a conversion of the 2026 Convertible Notes is settled in cash, to reduce its cash payment obligation) in the event that at the time of conversion of the 2026
Convertible Notes its Class A common stock price exceeds the conversion price of the 2026 Convertible Notes. The Capped Calls have an initial strike price of approximately $370.45 per share of Class A common stock and an initial cap price of approximately $478.00 per share of Class A common stock.
Senior notes
In September 2021, the Company completed the issuance of an aggregate principal amount of $1.0 billion of senior notes due on October 1, 2028 (the “2028 Senior Notes”) and an aggregate principal amount of $1.0 billion of senior notes due on October 1, 2031 (the “2031 Senior Notes” and together with the 2028 Senior Notes, the “Senior Notes”). The Senior Notes were issued within the United States only to persons reasonably believed to be qualified institutional buyers pursuant to Rule 144A under the Securities Act, and outside the United States to non-U.S. persons pursuant to Regulation S under the Securities Act.
In August and September 2023, the Company paid $177.2 million to repurchase $262.5 million of aggregate principal amount of the 2031 Senior Notes with a carrying value of $259.9 million, net of unamortized issuance costs of $2.6 million and legal fees of $1.1 million. The Company recorded a corresponding net gain on extinguishment of long-term debt during the year of $81.6 million in other (income) expense, net within the consolidated statements of operations.
The Company issued the Senior Notes at par and paid approximately $24.0 million in total debt issuance costs, which includes commissions payable to the initial purchasers and third-party offering costs. Interest on the Senior Notes is payable semi-annually in arrears on April 1 and October 1 of each year, beginning on April 2022 at 3.375% per annum for the 2028 Senior Notes and 3.625% per annum for the 2031 Notes. The entire principal amount of the Senior Notes is due at the time of maturity, unless repurchased or redeemed at an earlier date. The Senior Notes were issued pursuant to an indenture, dated September 17, 2021 (the “Senior Notes Indenture”), among the Company, the Guarantor (as defined below) and U.S. Bank National Association, as trustee.
The Senior Notes are redeemable at the Company’s discretion, in whole or in part, at any time. If redeemed prior to October 1, 2024 for the 2028 Senior Notes and October 1, 2026 for the 2031 Senior Notes, the redemption price is subject to a make-whole premium calculated by reference to then-current U.S. Treasury rates plus a fixed spread, plus any accrued and unpaid interest. If redeemed on or after those respective dates, the make-whole premium does not apply.
In addition, prior to October 1, 2024, the Company may redeem up to 40% of the aggregate principal amount of the Senior Notes with net cash proceeds from certain equity offerings at a redemption price equal to 103.375% of the principal amount of the 2028 Senior Notes to be redeemed and 103.625% of the principal amount of the 2031 Senior Notes to be redeemed, in each case, plus any accrued and unpaid interest. Upon the occurrence of a change of control triggering event (as defined in the Senior Notes Indenture), the Company must offer to repurchase each series of Senior Notes at a repurchase price equal to 101% of the principal amount of the Senior Notes to be repurchased, plus any accrued and unpaid interest, to, but excluding, the applicable repurchase date.
The Senior Notes are guaranteed by one of the Company’s domestic subsidiaries, Coinbase, Inc. (the “Guarantor”).
The indenture governing the Senior Notes contains customary covenants that restrict the ability of the Company and certain of its subsidiaries to incur debt and liens. The Company is not aware of any instances of non-compliance with the covenants as of December 31, 2023.
Interest
The following table summarizes the interest expense for the 2026 Convertible Notes and the Senior Notes (in thousands):
Year Ended December 31,
202320222021
Coupon interest$73,861 $77,235 $24,129 
Amortization of debt discount and issuance costs8,830 8,653 5,031 
Total$82,691 $85,888 $29,160 
v3.24.0.1
DERIVATIVES
 12 Months Ended
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVES DERIVATIVES
The following outlines the Company’s derivatives:
Type of DerivativeDescription of DerivativeLocation of Host Contract and Derivative on Balance Sheets
Crypto asset futures
The Company entered into short positions on futures contracts to minimize the exposure on the change in the fair value price of crypto assets held.
Accounts and loans receivable, net of allowance
Accounts and loans receivable denominated in crypto assets
Accounts receivable denominated in crypto assets: The Company provided services for which, under the contract, the customer pays in crypto assets. The amount of crypto assets are fixed at the time of invoicing. The right to receive fixed amounts of crypto assets consists of a receivable host contract and an embedded forward contract to purchase crypto assets.

Crypto asset loans receivable: The Company lends crypto assets to institutions. The amount of crypto assets are fixed at the time of loan origination.
Accounts and loans receivable, net of allowance
Crypto assets pledged as collateral
The Company enters into certain borrowing arrangements that require the Company to post collateral in the form of crypto assets. If the lender has the right to use the crypto asset collateral, the Company presents the collateral pledged as a right to receive a fixed amount of crypto assets.
Prepaid expenses and other current assets
Foreign currency forward contractsThe Company entered into foreign currency forward contracts, with maturities of 12 months or less, to offset the foreign currency exchange risk of its assets and liabilities denominated in foreign currencies. These contracts are not designated as hedging instruments and reduce, but do not entirely eliminate, the impact of foreign currency exchange rate movements on the Company’s assets and liabilities.Prepaid expenses and other current assets/ Accrued expenses and other current liabilities
Other payables denominated in crypto assets
The Company entered into arrangements that result in the obligation to deliver a fixed amount of crypto assets in the future.
Accrued expenses and other current liabilities
Crypto asset borrowings
The Company borrowed crypto assets that resulted in the obligation to deliver a fixed amount of crypto assets in the future.
Crypto asset borrowings
Impact of derivatives on the consolidated balance sheets
The following table summarizes the notional amounts of derivative instruments outstanding, measured in U.S. dollar equivalents (in thousands):
December 31,December 31,
20232022
Designated as hedging instrument(1)
Crypto asset futures(2)
$— $136,230 
Crypto asset borrowings31,666 80,999 
Not designated as hedging instrument
Crypto asset futures(2)
— 12,462 
Accounts and loans receivable denominated in crypto assets16,335 101,598 
Crypto assets pledged as collateral— 13,103 
Other payables denominated in crypto assets20,092 4,267 
Crypto asset borrowings12,503 70,462 
__________________
(1)    For risk management purposes, the Company applies hedge accounting using these derivative instruments in qualifying fair value hedges to primarily hedge the fair value exposure of crypto asset prices.
(2)    Derivative notional amounts are reference amounts from which contractual payments or settlement are derived and do not represent a complete measure of the risk profile of the Company’s exposure to derivative instruments.

The following tables summarize information on derivative assets and liabilities that are reflected on the consolidated balance sheets, by accounting designation (in thousands):
Gross Derivative AssetsGross Derivative Liabilities
Not Designated as HedgesDesignated as HedgesTotal Derivative AssetsNot Designated as HedgesDesignated as HedgesTotal Derivative Liabilities
December 31, 2023
Accounts and loans receivable denominated in crypto assets$28,065 $— $28,065 $— $— $— 
Other payables denominated in crypto assets2,511 — 2,511 3,101 — 3,101 
Crypto asset borrowings(1)
26 (25)1 5,290 13,522 18,812 
Total fair value of derivative assets and liabilities$30,602 $(25)$30,577 $8,391 $13,522 $21,913 

December 31, 2022
Accounts and loans receivable denominated in crypto assets$302 $— $302 $9,146 $— $9,146 
Crypto assets pledged as collateral— — — 2,360 — 2,360 
Other payables denominated in crypto assets1,270 — 1,270 5,767 — 5,767 
Crypto asset borrowings(1)
2,266 — 2,266 657 1,653 2,310 
Total fair value of derivative assets and liabilities$3,838 $— $3,838 $17,930 $1,653 $19,583 
__________________
(1)    During the year ended December 31, 2023, the fees on these borrowings ranged from 1.5% to 10.3%. During the year ended December 31, 2022, the fees on these borrowings ranged from 0.0% to 9.0%. During the years ended December 31, 2023 and 2022, the Company incurred $4.8 million and $6.7 million of borrowing fees in crypto assets, respectively. Borrowing fees are included in other operating expense, net in the consolidated statements of operations.
Impact of derivatives on the consolidated statements of operations
Gains (losses) on derivative instruments recognized in the consolidated statements of operations were as follows (in thousands):
Year Ended December 31, 2023Year Ended December 31, 2022
DerivativesHedged ItemsIncome Statement ImpactDerivativesHedged ItemsIncome Statement Impact
Designated as fair value hedging instruments
Crypto asset futures(1)
$(40,191)$46,453 $6,262 $13,571 $(12,994)$577 
Crypto asset borrowings(1)
(75,249)117,393 42,144 359,240 (359,528)(288)
Not designated as hedging instruments
Crypto asset futures(1)
(1,424)— (1,424)1,735 — 1,735 
Accounts and loans receivable denominated in crypto assets(2)
28,602 — 28,602 (24,969)— (24,969)
Crypto assets pledged as collateral(1)
— — — (2,360)— (2,360)
Foreign currency forward contracts(2)
— — — (59,063)— (59,063)
Other payables denominated in crypto assets(1)
5,014 — 5,014 5,271 — 5,271 
Crypto asset borrowings(1)
(47,160)— (47,160)11,242 — 11,242 
Other(1)
4,839 — 4,839 — — — 
Total$(125,569)$163,846 $38,277 $304,667 $(372,522)$(67,855)
__________________
(1)Changes in fair value are recognized in other operating expense, net in the consolidated statements of operations.
(2)Changes in fair value are recognized in other (income) expense, net. Foreign currency forward contracts partially offset gains and losses due to the remeasurement of certain foreign currency denominated assets and liabilities which are also recognized in other (income) expense, net in the consolidated statements of operations.

The following amounts were recorded on 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, net (in thousands):
Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Items
Carrying Amount of the Hedged ItemsActive Hedging RelationshipsDiscontinued Hedging RelationshipsTotal
December 31, 2023
Crypto assets held$45,212 $(3,946)$— $(3,946)
December 31, 2022
Crypto assets held$201,565 $(562)$670 $108 
v3.24.0.1
FAIR VALUE MEASUREMENTS
 12 Months Ended
Dec. 31, 2023
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):
December 31, 2023December 31, 2022
Level 1Level 2Level 3Level 1Level 2Level 3
Assets
Cash equivalents(1)
$3,682,917 $— $— $2,250,065 $— $— 
Customer custodial funds(2)
3,301,029 — — 2,088,132 — — 
Crypto assets held(3)
45,212 — — 201,565 — — 
Derivative assets(4)
— 30,577 — — 3,838 — 
Crypto asset loans receivable— 22,229 — — 85,826 — 
Safeguarding customer crypto assets— 192,583,060 — — 75,413,188 — 
Total assets$7,029,158 $192,635,866 $— $4,539,762 $75,502,852 $— 
Liabilities
Derivative liabilities(4)
$— $21,913 $— $— $19,583 $— 
Safeguarding customer crypto liabilities— 192,583,060 — — 75,413,188 — 
Contingent consideration arrangement— — — — — 1,855 
Total liabilities$— $192,604,973 $— $— $75,432,771 $1,855 
__________________
(1)Represents money market funds. Excludes $1.4 billion of corporate cash held in deposit at banks and $88.8 million held at venues, which were not measured and recorded at fair value as of December 31, 2023. Excludes $2.0 billion of corporate cash held in deposit at banks and $143.2 million held at venues, which were not measured and recorded at fair value as of December 31, 2022.
(2)Represents money market funds. Excludes customer custodial funds of $1.3 billion and $3.0 billion held in deposit at financial institutions and not measured and recorded at fair value as of December 31, 2023 and 2022, respectively.
(3)Includes crypto assets held that have been designated as hedged items in fair value hedges and excludes crypto assets of $404.7 million and $222.8 million held at cost as of December 31, 2023 and 2022, respectively.
(4)See Note 15. Derivatives for additional details.
The Company did not make any transfers into or out of Level 3 of the fair value hierarchy during the years ended December 31, 2023 and 2022.
Safeguarding customer crypto assets and liabilities represent the Company’s obligation to safeguard customer crypto assets. Accordingly, the Company has valued the assets and liabilities using quoted market prices for the underlying crypto assets which is based on Level 2 inputs.
Level 3 contingent consideration arrangement liability
The following table presents a reconciliation of the contingent consideration arrangement measured at fair value on a recurring basis using significant unobservable inputs (in thousands):
Year Ended December 31,
20232022
Balance, beginning of period$1,855$14,828
Change in fair value436(8,312)
Settlement(2,291)(4,661)
Balance, end of period$—$1,855
In connection with the contingent consideration arrangement, the Company issued 57,640 and 28,422 shares of its Class A common stock in 2022 and 2023, respectively, pursuant to the terms of the arrangement. As of December 31, 2023, all contingencies related to this arrangement were resolved. Contingent consideration arrangements are included in other non-current liabilities and changes in fair value are recognized through other (income) expense, net in the consolidated statements of operations.
Assets and liabilities measured and recorded at fair value on a non-recurring basis
The Company’s non-financial assets, such as goodwill, intangible assets, property and equipment, and crypto assets held but not designated in hedging relationships are adjusted to fair value when an impairment charge is recognized. The Company’s strategic investments are also measured at fair value on a non-recurring basis. Such fair value measurements are based predominantly on Level 3 inputs. The carrying value of the Company’s strategic investments is predominantly adjusted based on an Option-Pricing Model that uses publicly available market data of comparable companies and other unobservable inputs including expected volatility, expected time to liquidity, adjustments for other company-specific developments, and the rights and obligations of the securities the Company holds. Fair value of crypto assets held are predominantly based on Level 1 inputs.
Assets and liabilities not measured and recorded at fair value
The Company’s financial instruments, including certain cash and cash equivalents, restricted cash, certain customer custodial funds, USDC, accounts receivable, fiat loans receivable, customer custodial cash liabilities, and short-term borrowings are not measured at fair value. The carrying values of these instruments approximate their fair values due to their liquid or short term nature. If these financial instruments were recorded at fair value, they would be based on Level 1 inputs, except for short-term borrowings and loans receivable which would be based on Level 2 and Level 3 inputs, respectively.
The Company estimates the fair value of its 2026 Convertible Notes and Senior Notes based on quoted prices in markets that are not active, which is considered a Level 2 valuation input. As of December 31, 2023, the estimated fair value of the 2026 Convertible Notes and Senior Notes were $1.2 billion and $1.4 billion, respectively.
v3.24.0.1
CAPITAL STOCK
 12 Months Ended
Dec. 31, 2023
Equity [Abstract]  
CAPITAL STOCK CAPITAL STOCK
Preferred stock
In connection with the Direct Listing, the Company’s amended and restated certificate of incorporation (the “Restated Certificate of Incorporation”) became effective, which authorized the issuance of 500,000,000 shares of undesignated preferred stock with a par value of $0.00001 per share with rights and preferences, including voting rights, designated from time to time by the Company’s board of directors (the “Board”).
Common stock
Pursuant to the Restated Certificate of Incorporation, the Board is authorized to issue 10,000,000,000 shares of Class A common stock, 500,000,000 shares of Class B common stock, and 500,000,000 shares of undesignated common stock.
Dividend rights
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.
Voting rights
Holders of Class A common stock are entitled to one vote per share, and holders of Class B common stock are entitled to 20 votes per share. Holders of Class A common stock and Class B common stock
generally vote together as a single class on all matters (including the election of directors) submitted to a vote of the stockholders of the Company.
Right to receive liquidation distributions
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.
Conversion
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. Once converted into Class A common stock, the Class B common stock will not be reissued.
v3.24.0.1
STOCK-BASED COMPENSATION
 12 Months Ended
Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION
Stock plans
The Company maintains four equity incentive plans: the 2013 Plan, the 2019 Plan, and the 2021 Plan (together, the “Plans”), and the ESPP. Following the Direct Listing, the Company has only issued awards under the 2021 Plan and the ESPP, and no additional awards will be granted under the 2013 Plan and 2019 Plan. In addition, certain of the Company’s existing options assumed in connection with acquisitions are governed by the terms of the acquired company’s equity awards plan.
In February 2021, the Board approved and adopted the 2021 Plan. The 2021 Plan became effective on March 31, 2021, the date immediately prior to the effective date of the Company’s registration statement for the Direct Listing. The 2021 Plan serves as the successor to the 2019 Plan. Outstanding awards under the 2013 Plan and 2019 Plan continue to be subject to their original terms and conditions. The 2021 Plan provides for the granting of incentive stock options, RSUs, restricted stock, stock appreciation rights and performance and stock bonus awards to assist in attracting, retaining and motivating employees. The number of shares available for grant and issuance under the 2021 Plan will be automatically increased on January 1st of each of the first ten fiscal years during the term of the 2021 Plan by the lesser of (a) five percent of the total number of shares of all classes of the Company’s common stock issued and outstanding on an as converted to common stock basis on each December 31st immediately prior to the date of increase or (b) such number of shares determined by the Board.
As of December 31, 2023, there were 28,948,240 shares of Class A common stock subject to issued and outstanding options, RSUs and PRSUs, and 3,568,760 shares of Class B common stock subject to issued and outstanding options under the Plans. Under the 2021 Plan, there were 49,433,488 shares of Class A common stock available for future issuance.
Stock options
Options granted under the Plans may be either incentive stock options (“ISOs”) or nonqualified stock options (“NSOs”). ISOs may be granted only to Company employees (including officers and directors who are also employees). NSOs may be granted to Company employees and non-employees.
Options under the Plans may be granted for contractual periods of up to ten years and at prices determined by the Board, provided, however, that the exercise price of an ISO and NSO shall not be less than 100% of the estimated fair value of the underlying shares on the date of the grant (110% if granted to a stockholder who owns more than ten percent of the total combined voting power of all classes of stock of the Company or any parent or subsidiary).
Under the 2013 Plan and 2019 Plan, options granted to new employees of the Company generally vest over four years and vest at a rate of 25% upon the first anniversary of the issuance date and 1/48 per month thereafter. Refresher options granted to existing employees of the Company generally vest in equal monthly installments over four years. No additional awards have been or will be granted under the 2013 Plan and 2019 Plan following the Company’s Direct Listing.
Under the 2021 Plan, options are granted to executives and eligible non-executive employees which vest in equal quarterly installments over a period of three years.
The 2013 Plan and 2019 Plan allow for a 7 year exercise window post-termination for employees of the Company who have provided at least two years of continuous service to the Company as of their termination date.
A summary of options activity for the year ended December 31, 2023 is as follows (in thousands, except per share and years data):
Options OutstandingWeighted Average Exercise Price per ShareWeighted Average Remaining Contractual Life (Years)Aggregate Intrinsic Value
Balance at January 1, 202331,795 $23.31 7.0$504,222 
Granted843 73.07 
Exercised(3,039)15.84 
Forfeited and cancelled(902)40.90 
Balance at December 31, 202328,697 $25.01 6.14,295,055 
Exercisable at December 31, 202322,560 $25.43 6.03,371,636 
Vested and expected to vest at December 31, 202322,593 $25.42 6.03,376,658 
During the year ended December 31, 2023, the Company granted stock options for the purchase of 842,617 shares of Class A common stock with a weighted-average grant date fair value of $40.85 per share to certain employees of the Company. The stock options vest over three years at a rate of 1/12 per quarter.
As of December 31, 2023, there was total unrecognized compensation cost of $70.1 million related to unvested stock options. These costs are expected to be recognized over a weighted-average period of approximately 2.3 years.
The intrinsic value is calculated as the difference between the exercise price of the underlying stock option award and the estimated fair value of the Company’s common stock. The aggregate intrinsic value of stock options exercised during the years ended December 31, 2023, 2022 and 2021 was $226.5 million, $336.3 million and $5.9 billion, respectively.
During the years ended December 31, 2023, 2022 and 2021, 4,567,625, 7,592,673, and 14,966,504 stock options vested with a weighted-average grant date fair value of $15.93, $12.46, and $8.74 per share, respectively.
The assumptions used under the Black-Scholes-Merton Option-Pricing Model to calculate the fair value of the options granted to employees were as follows:
Year Ended December 31,
202320222021
Dividend yield0.0 %0.0 %0.0 %
Expected volatility90.5 %59.3 %44.0 %
Expected term (in years)5.85.84.8
Risk-free interest rate3.9 %2.1 %0.5 %
Early exercise of stock options
As of December 31, 2023 and 2022, there were 29,430 and 166,481 shares, respectively, subject to repurchase related to stock options early exercised and not yet vested, but that are expected to vest. Class A common stock purchased pursuant to an early exercise of stock options is not deemed to be outstanding for accounting purposes until those shares vest. The Company excludes unvested shares subject to repurchase in the number of shares outstanding in the consolidated balance sheets and consolidated statements of changes in preferred stock and stockholders’ equity. As of December 31, 2023 and 2022, the Company recorded a liability related to these shares subject to repurchase in the amount of $0.6 million and $3.3 million, respectively, which is included within accrued expenses and other current liabilities on the accompanying consolidated balance sheets.
Chief Executive Officer performance stock options
On August 11, 2020, the Company granted its Chief Executive Officer an option award to purchase up to 9,293,911 shares of Class A common stock, at an exercise price of $23.46 per share. Vesting of the award is dependent on both performance-based and market-based conditions being met. The total grant date fair value of this award was $56.7 million.
The performance condition was contingent on the Company’s registration statement being declared effective by the SEC under the Securities Act. The occurrence of this event was considered to not be probable until such time that it occurred. During April 2021, as a result of the Company’s registration statement being declared effective by the SEC, the performance condition of the option award granted to the Chief Executive Officer was met. No awards vested at that time as none of the accompanying market-based conditions had been met.
The market conditions are contingent on the Company’s Class A common stock price achieving certain stock price target milestones. On July 8, 2021, the first price target of the award was met, resulting in the vesting of 3,159,930 shares of Class A common stock subject to the option award. During the years ended December 31, 2023, 2022 and 2021, compensation expense of $3.9 million, $3.9 million and $29.5 million was recognized related to this award, respectively.
Restricted stock units
The Company grants RSUs that vest upon the satisfaction of a service-based condition. In general, the RSUs vest over a service period ranging from one to four years. Once vested, the RSUs are settled by delivery of Class A common stock.
A summary of RSU activity for the year ended December 31, 2023 is as follows (in thousands, except per share data):
Number of SharesWeighted-Average Grant Date Fair Value Per Share
Balance at January 1, 20235,329 $127.85 
Granted9,408 58.04 
Vested(10,278)71.40 
Forfeited and cancelled(1,443)116.14 
Balance at December 31, 20233,016 $108.07 
During the years ended December 31, 2022 and 2021, the weighted-average grant date fair value per share granted was $112.35 and $233.24, respectively. During the years ended December 31, 2023, 2022, and 2021, the aggregate fair value as of the vest date of RSUs that vested was $753.9 million, $947.9 million, and $644.2 million, respectively.
In December 2022, the Company modified certain RSU awards held by 1,198 employees to accelerate vesting of the remaining unvested awards on December 21, 2022 instead of the original vest date of February 20, 2023. The modification of awards did not result in any incremental compensation cost, however $36.1 million of stock-based compensation expense was accelerated and recognized upon modification.
As of December 31, 2023, there was total unrecognized compensation cost of $284.2 million related to unvested RSUs. These costs are expected to be recognized over a weighted-average period of approximately 1.3 years.
President & Chief Operating Officer performance award
On April 20, 2023, the Company’s Compensation Committee granted the President & Chief Operating Officer an award of PRSUs covering a target of 401,983 shares of Class A common stock and up to a maximum of 803,966 shares of Class A common stock (the “2023 COO Performance Award”).
Up to 40% of the 2023 COO Performance Award is subject to vesting based upon achievement of certain cumulative revenue and cumulative adjusted EBITDA target values which are separately evaluated for the period commencing January 1, 2023 and ending on December 31, 2025, subject to her continued employment until February 20, 2026 (the “Financial Performance Tranches”). Up to 60% of the 2023 COO Performance Award is subject to vesting in increments based upon a relative shareholder return target value for the three annual periods between January 1, 2023 and December 31, 2025, and the three year period between January 1, 2023 and December 31, 2025, subject to her continued employment through the applicable year end dates (the “Market Tranches”). The total grant date fair value of the Market Tranches of this award was $25.1 million, while the grant date fair value of the Financial Performance Tranches was $19.5 million assuming maximum achievement.
During the year ended December 31, 2023, stock-based compensation expense of $9.8 million was recognized related to this award.
A summary of PRSU activity for the year ended December 31, 2023 is as follows (in thousands, except per share data):
Number of SharesWeighted-Average Grant Date Fair Value Per Share
Balance at January 1, 2023— $— 
Granted804 55.42 
Balance at December 31, 2023804 $55.42 
As of December 31, 2023, there was total unrecognized compensation cost of $15.3 million related to the unvested Market Tranches of these PRSUs, which are currently expensing. These costs are expected to be recognized over a weighted-average period of approximately 1.9 years. The Company is not yet recognizing expense with respect to the Financial Performance Tranches; the full grant date fair value of these tranches is unrecognized.
Restricted common stock
In connection with the Company’s acquisitions, the Company has issued shares of restricted Class A common stock. Vesting of this restricted Class A common stock is dependent on a service-based vesting condition that is generally satisfied over three years. The Company has the right to repurchase shares at par value when the vesting condition is not satisfied. Activity of restricted Class A common stock is as follows (in thousands, except per share data):
Number of SharesWeighted-Average Grant Date Fair Value Per Share
Balance at January 1, 20231,275 $139.72 
Granted263 64.51 
Vested(966)132.53 
Forfeited and cancelled(29)171.85 
Balance at December 31, 2023543 $114.22 
During the years ended December 31, 2022 and 2021, the weighted-average grant date fair value per share granted was $137.05 and $180.33, respectively. During the years ended December 31, 2023, 2022, and 2021, the aggregate fair value as of the vest date of restricted common stock that vested was $56.0 million, $148.6 million, and $65.0 million, respectively.
As of December 31, 2023, there was total unrecognized compensation cost of $33.2 million related to unvested restricted Class A common stock. These costs are expected to be recognized over a weighted-average period of approximately 1.4 years.
Employee Stock Purchase Plan
In February 2021, the Board approved and adopted the ESPP. The ESPP became effective on April 1, 2021, the effective date of the Company’s registration statement for the Direct Listing. The ESPP allows eligible employees the option to purchase shares of the Company’s Class A common stock at a 15% discount, over a series of offering periods through accumulated payroll deductions over the period. The ESPP also includes a look-back provision for the purchase price if the stock price on the purchase date is lower than the stock price on the offering date.
The number of shares available for grant and issuance under the ESPP will be automatically increased on January 1st of each of the first ten fiscal years during the term of the ESPP by the lesser of (a) one percent of the total number of shares of all classes of the Company’s common stock outstanding
on an as converted to common stock basis on each December 31st immediately prior to the date of increase or (b) such number of shares determined by the Board or the compensation committee of the Board.
The grant date of the initial offering period was May 3, 2021, and that offering period ended on April 30, 2023. Subsequent offering periods commence each May and November after the start of the initial offering period. For the years ended December 31, 2023, 2022 and 2021, total compensation expense of $17.3 million, $28.4 million and $9.4 million, respectively, was recognized related to the ESPP. As of December 31, 2023 and 2022, the Company recorded a liability of $4.1 million and $6.7 million, respectively related to the accumulated payroll deductions, which are refundable to employees who withdraw from the ESPP. This amount is included within accrued expenses and other current liabilities on the accompanying consolidated balance sheets. As of December 31, 2023, there were 9.0 million shares of Class A common stock available for issuance under the ESPP.
Stock-based compensation expense
Stock-based compensation is included in the following components of expenses on the accompanying consolidated statements of operations (in thousands):
Year Ended December 31,
202320222021
Technology and development$476,478 $1,093,983 $571,861 
Sales and marketing59,000 76,153 32,944 
General and administrative245,190 395,687 215,880 
Restructuring84,042 — — 
Total$864,710 $1,565,823 $820,685 
During the years ended December 31, 2023, 2022 and 2021, $53.6 million, $118.0 million and $3.5 million of stock-based compensation expense was included in capitalized software, respectively. During the years ended December 31, 2023, 2022, and 2021, the Company recognized an income tax benefit of $205.6 million, $246.6 million, and $1.4 billion, respectively, related to stock-based compensation expense. The income tax benefit related to stock-based compensation expense in 2021 reflects excess tax benefits primarily related to deductible stock option exercises in connection with the Direct Listing.
v3.24.0.1
OTHER (INCOME) EXPENSE, NET
 12 Months Ended
Dec. 31, 2023
Other Income and Expenses [Abstract]  
OTHER (INCOME) EXPENSE, NET OTHER (INCOME) EXPENSE, NET
Other (income) expense, net consisted of the following (in thousands):
Year Ended December 31,
202320222021
Foreign exchange losses, net
$10,609 $161,749 $40,989 
(Gains) losses on strategic investments
(24,368)101,219 (19,602)
Gain on extinguishment of long-term debt(117,383)— — 
Other(36,441)2,505 (924)
Total other (income) expense, net
$(167,583)$265,473 $20,463 
v3.24.0.1
INCOME TAXES
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The components of income (loss) before income taxes were attributable to the following regions (in thousands):
Year Ended December 31,
202320222021
Domestic$(113,067)$(3,071,951)$2,977,406 
Foreign36,222 7,369 49,541 
Total income (loss) before provision for income taxes
$(76,845)$(3,064,582)$3,026,947 
Benefit from income taxes consisted of the following (in thousands):
Year Ended December 31,
202320222021
Current
Federal$8,761 $1,654 $(51,942)
State24,236 3,985 4,456 
Foreign11,621 22,763 8,642 
Total current44,618 28,402 (38,844)
Deferred
Federal(218,165)(361,056)(438,810)
State416 (126,713)(93,959)
Foreign1,415 19,734 (25,560)
Total deferred(216,334)(468,035)(558,329)
Total benefit from income taxes
$(171,716)$(439,633)$(597,173)
The effective income tax rate differs from the statutory federal income tax rate as follows:
Year Ended December 31,
202320222021
U.S. statutory rate
21.00 %21.00 %21.00 %
State income taxes, net of federal benefit6.08 5.04 (4.67)
Foreign rate differential(0.14)(0.02)(1.09)
Non-deductible compensation(48.93)(1.34)0.83 
Equity compensation43.51 (3.43)(31.95)
Adjustment to prior year provision24.85 (0.23)0.14 
Research and development (“R&D”) credits
62.20 1.40 (9.60)
Change in valuation allowance195.59 (6.37)1.65 
Foreign tax credit6.31 — — 
Foreign Derived Intangible Income (“FDII”)0.65 — — 
Global Intangible Low Taxed Income (“GILTI”)(18.55)(0.94)— 
Uncertain tax positions(56.06)(0.60)3.07 
Other(13.05)(0.16)0.89 
Effective income tax rate
223.46 %14.35 %(19.73)%
The Company’s effective tax rate of 223.46% for the year ended December 31, 2023 is due primarily to a reduction of a valuation allowance related to impairment charges on crypto assets held and strategic investments and tax benefits related to Federal R&D credits, reduced by certain nondeductible
compensation, tax on non-U.S. earnings, and other nondeductible expenses related to political contributions.
The Company’s effective tax rate of 14.35% for the year ended December 31, 2022 reflects a tax benefit on pretax loss reduced by certain nondeductible compensation and a valuation allowance recorded on impairment charges related to crypto assets held and strategic investments.
The Company’s effective tax rate of (19.73)% for the year ended December 31, 2021 reflects a tax benefit on pretax income due primarily to deductible stock option exercises as a result of the Direct Listing, and R&D credits.
The Company’s effective tax rate can be volatile based on the amount of pretax income or loss in the reporting period. For example, when pretax income is lower, the effect of reconciling items to the U.S. statutory rate, such as nondeductible expenses, will have a greater impact on the effective tax rate.
Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes.
Significant components of the Company’s deferred tax assets and liabilities consisted of the following (in thousands):
December 31,
20232022
Deferred tax assets
Safeguarded crypto liabilities$46,437,843 $19,086,117 
Accruals and reserves13,847 6,248 
Net operating loss carryforward55,563 396,613 
Lease liability4,494 19,967 
Tax credit carryforward351,003 301,862 
Stock-based compensation21,284 24,527 
Intangibles49,255 27,022 
Capitalized expenses759,789 415,981 
Capital losses - realized / unrealized207,563 225,211 
Gross deferred tax assets47,900,641 20,503,548 
Less valuation allowance(102,250)(252,258)
Total deferred tax assets47,798,391 20,251,290 
Deferred tax liabilities
Safeguarded crypto assets(46,437,843)(19,086,117)
State taxes(13,169)(23,212)
Depreciation and amortization(32,246)(35,893)
Prepaid expenses(10,870)(5,938)
Right of use asset(3,894)(18,246)
Installment gain(10,918)(13,443)
Other(17,218)(21,650)
Total deferred tax liabilities(46,526,158)(19,204,499)
Total net deferred tax assets$1,272,233 $1,046,791 
As of December 31, 2023, the Company had $1.3 billion in net deferred tax assets. At each reporting date, management considers new evidence, both positive and negative, that could affect its view of the future realization of deferred tax assets. On the basis of this evaluation, only the portion of the deferred tax asset that is more likely than not to be realized was recognized. However, if the Company is not able to generate sufficient taxable income from its operations in the future, then a valuation allowance to reduce the Company’s U.S. deferred tax assets may be required, which would increase the Company’s expenses in the period the allowance is recognized.
Activity related to the Company’s valuation allowance consisted of the following (in thousands):
Year Ended December 31,
202320222021
Balance, beginning of period$252,258 $54,383 $5,174 
Charged (credited) to expenses(150,008)197,875 49,209 
Balance, end of period$102,250 $252,258 $54,383 
The Company’s valuation allowance as of December 31, 2023 was lower compared to 2022 driven by the increase in the fair value of crypto assets held during the reporting period. The valuation allowance as of December 31, 2023 includes allowances primarily related to California R&D credits, and realized and unrealized capital losses on crypto assets and Coinbase Ventures investments.
In accordance with the Company’s adoption of SAB 121, the Company recognized a deferred tax liability on the safeguarded asset and an offsetting deferred tax asset on the safeguarded liability. In the unlikely event of loss or theft to the safeguarded asset, the Company may be obligated to indemnify the customer for the loss, and could result in a change to the net deferred tax asset. As of December 31, 2023, the Company has not recognized any potential loss event and the SAB 121 deferred tax asset and liability are equal and offsetting.
As of December 31, 2023, the Company also had R&D credits of $260.6 million and $97.5 million for federal and state income tax purposes, respectively. If not utilized, the federal research and development credits will expire in various amounts beginning in 2042. However, the state of California research and development credits can be carried forward indefinitely. The Company also had U.S. federal net operating loss carryforwards of $105.0 million as of December 31, 2023, and an estimated $1.3 billion as of December 31, 2022. On the Company’s 2022 tax return, the Company elected to capitalize expenses which replaced the estimated 2022 net operating loss carryforwards. The U.S. federal net operating losses carry forward indefinitely. Additionally, the Company had U.S. state net operating losses of approximately $331.7 million as of December 31, 2023. Generally, California and other significant U.S. states have a twenty-year carryforward for net operating losses.
Activity related to the Company’s unrecognized tax benefits consisted of the following (in thousands):
Year Ended December 31,
202320222021
Balance, beginning of period
$124,106 $111,019 $12,807 
Settlements— (6,128)— 
Increase related to tax positions taken during a prior year30,685 13,940 — 
Decrease related to tax positions taken during a prior year
— (9,187)— 
Increase related to tax positions taken during the current year
16,902 14,462 98,212 
Balance, end of period
$171,693 $124,106 $111,019 
As of December 31, 2023 and 2022, the Company had $171.7 million and $124.1 million, respectively, of unrecognized tax benefits, of which $126.8 million and $114.4 million, respectively, would reduce income tax expense and affect the effective tax rate, if recognized. It is reasonably possible that the balance of unrecognized tax benefits could decrease within the next twelve months as a result of audit closures. The potential reduction in unrecognized tax benefits is $71.8 million, of which $67.4 million would favorably impact the Company’s effective tax rate. The Company accounts for interest and penalties related to exposures as a component of income tax expense. The Company recorded $1.6 million and $0.5 million of accrued interest and penalties, respectively, as of December 31, 2023 and $0.5 million and $0.3 million of accrued interest and penalties, respectively, as of December 31, 2022.
The Company files U.S. federal, state, and foreign income tax returns in jurisdictions with varying statutes of limitations. Currently these statutes of limitations are open from 2020 forward for the United States, 2018 forward for California, 2021 forward for the United Kingdom, and 2019 forward for Ireland. The Company is currently under audit by the IRS with respect to its federal income tax returns for 2020 and 2021, and California with respect to its state income tax returns for 2018 and 2019. The Company is also under audit in the United Kingdom, Germany and India for 2021.
v3.24.0.1
NET INCOME (LOSS) PER SHARE
 12 Months Ended
Dec. 31, 2023
Earnings Per Share [Abstract]  
NET INCOME (LOSS) PER SHARE NET INCOME (LOSS) PER SHARE
The computation of net income (loss) per share is as follows (in thousands, except per share amounts):
Year Ended December 31,
202320222021
Basic net income (loss) per share:
Numerator
Net income (loss)$94,871 $(2,624,949)$3,624,120 
Less: Income allocated to participating securities(119)— (527,162)
Net income (loss) attributable to common stockholders, basic$94,752 $(2,624,949)$3,096,958 
Denominator
Weighted-average shares of common stock used to compute net income (loss) per share attributable to common stockholders, basic235,796 222,314 177,319 
Net income (loss) per share attributable to common stockholders, basic$0.40 $(11.81)$17.47 
Diluted net income (loss) per share:
Numerator
Net income (loss)$94,871 $(2,624,949)$3,624,120 
Less: Income allocated to participating securities(120)— (439,229)
Add: Interest on convertible notes, net of tax— — 6,208 
Less: Fair value gain on contingent consideration arrangement, net of tax— (6,230)(695)
Net income (loss) attributable to common
stockholders, diluted
$94,751 $(2,631,179)$3,190,404 
Denominator
Weighted-average shares of common stock used to compute net income (loss) per share attributable to common stockholders, basic235,796 222,314 177,319 
Weighted-average effect of potentially dilutive securities:
Stock options16,845 — 36,396 
RSUs1,605 — 3,773 
Restricted common stock145 — 9 
Warrants— — 72 
Convertible notes— — 2,388 
Contingent consideration— 24 8 
Weighted-average shares of common stock used to compute net income (loss) per share attributable to common stockholders, diluted254,391 222,338 219,965 
Net income (loss) per share attributable to common stockholders, diluted$0.37 $(11.83)$14.50 
Certain shares of the Company’s restricted Class A common stock granted as consideration in acquisitions and the Company’s preferred stock outstanding during 2021 are participating securities. These participating securities do not contractually require the holders of such shares to participate in the Company’s losses.
The rights, including the liquidation and dividend rights, of the holders of Class A common stock and Class B common stock are identical, except with respect to voting. As a result, the undistributed earnings are allocated on a proportionate basis and the resulting income (loss) per share will, therefore, be the same for both Class A common stock and Class B common stock on an individual or combined basis.
The following potentially dilutive shares were not included in the calculation of diluted shares outstanding as the effect would have been anti-dilutive (in thousands):
December 31,
2023 20222021
Stock options6,743 31,795 6,134 
RSUs929 5,329 151 
Convertible notes3,437 3,880 — 
ESPP918 1,945 295 
Restricted common stock263 1,602 5 
PRSUs322 — — 
Total12,612 44,551 6,585 
v3.24.0.1
COMMITMENTS AND CONTINGENCIES
 12 Months Ended
Dec. 31, 2023
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES
Indemnifications
In the event any registrable securities are included in a registration statement, the Company’s Amended and Restated Investors’ Rights Agreement (the “IRA”) entered into with certain of the Company’s stockholders provides indemnity to each stockholder, their partners, members, officers, directors, and stockholders, legal counsel, and accountants; each underwriter, if any; and each person who controls each stockholder or underwriter, against any damages incurred in connection with investigating or defending any claim or proceeding arising as a result of such registration from which damages may result. The Company will reimburse each such party for any legal and any other expenses reasonably incurred, provided that the Company will not be liable in any such case to the extent the damages arise out of or are based upon any actions or omissions made in reliance upon and in conformity with written information furnished by or on behalf of such stockholder or underwriter and stated to be specifically for use therein.
The Company also has indemnity agreements with certain officers and directors of the Company pursuant to which the Company must indemnify the officer or director against all expenses, judgments, fines, and amounts paid in settlement reasonably incurred in connection with a third party proceeding, if the indemnitee acted in good faith and in a manner reasonably believed to be in or not opposed to the best interests of the Company, and in the case of a criminal proceeding, had no reasonable cause to believe the indemnitee’s conduct was unlawful.
It is not possible to determine the maximum potential exposure under these indemnification agreements: (i) because the facts and circumstances involved in each claim are unique and the Company cannot predict the number or nature of claims that may be made; (ii) due to the unique facts and circumstances involved in each particular agreement; and (iii) due to the requirement for a registration of the Company’s securities before any of the indemnification obligations contemplated in the IRA become effective.
The Company has also provided indemnities or similar commitments on standard commercial terms in the ordinary course of business.
Legal and regulatory proceedings
The Company is subject to various litigation, regulatory investigations, and other legal proceedings that arise in the ordinary course of its business. The Company is also subject to regulatory oversight by numerous regulatory and other governmental agencies. The Company reviews its lawsuits, regulatory investigations, and other legal proceedings on an ongoing basis and provides disclosure and records loss contingencies in accordance with the loss contingencies accounting guidance. In accordance with such guidance, the Company establishes accruals for such matters when potential losses become probable and can be reasonably estimated. If the Company determines that a loss is reasonably possible and the loss or range of loss can be estimated, the Company discloses the possible loss in the consolidated financial statements.
In July and August 2021, three purported securities class actions were filed in the U.S. District Court for the Northern District of California against the Company, its directors, certain of its officers and employees, and certain venture capital and investment firms. The complaints alleged violations of Sections 11, 12(a)(2) and 15 of the Securities Act, in connection with the registration statement and prospectus filed in connection with the Direct Listing. In November 2021, these actions were consolidated and recaptioned as In re Coinbase Global Securities Litigation, and an amended complaint was filed. The plaintiff seeks, among other relief, unspecified compensatory damages, attorneys’ fees, and costs. The Company disputes the claims in these cases and is vigorously defending against them. Based on the preliminary nature of the proceedings in these cases, the outcome of these matters remain uncertain and the Company cannot estimate the potential impact, if any, on its business or financial statements at this time. The Company has subsequently received, and expects to receive in the future, similar shareholder claims.
In October 2021, a purported class action captioned Underwood et al. v. Coinbase Global, Inc., was filed in the U.S. District Court for the Southern District of New York against the Company alleging claims under Sections 5, 15(a)(1) and 29(b) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and violations of certain California and Florida state statutes. On March 11, 2022, plaintiffs filed an amended complaint adding Coinbase, Inc. and Brian Armstrong as defendants and adding causes of action. Among other relief requested, the plaintiffs sought injunctive relief, unspecified damages, attorneys’ fees and costs. On February 1, 2023, the court dismissed all federal claims (with prejudice) and state law claims (without prejudice) against Coinbase Global, Inc., Coinbase, Inc. and Brian Armstrong. Subsequently, on February 9, 2023, the plaintiffs appealed that ruling to the U.S. Court of Appeals for the Second Circuit, and the parties completed briefing the appeal on September 13, 2023. Oral argument took place on February 1, 2024. The defendants continue to dispute the claims in this case and intend to vigorously defend against them. Based on the nature of the proceedings in this case, the outcome of this matter remains uncertain and the Company cannot estimate the potential impact, if any, on its business or financial statements at this time.
In December 2021, a shareholder derivative suit captioned Shin v. Coinbase Global, Inc., was filed in New York state court against the Company and its directors, alleging breach of fiduciary duties, unjust enrichment, abuse of control, gross mismanagement, and waste of corporate assets, and seeking unspecified damages and injunctive relief. The Company has subsequently received, and expects to receive in the future, similar derivative claims. The Company disputes the claims in these cases and intends to vigorously defend against them. Based on the preliminary nature of the proceedings in these cases, the outcome of these matters remain uncertain and the Company cannot estimate the potential impact, if any, on its business or financial statements at this time.
During 2022, the Company’s subsidiary, Coinbase, Inc., which holds a BitLicense from the New York Department of Financial Services (“NYDFS”) and is therefore subject to examinations and investigations by the NYDFS, was subject to an investigation by the NYDFS relating to its compliance program including
compliance with the Bank Secrecy Act and sanctions laws, cybersecurity, and customer support. In January 2023, the NYDFS announced a consent order focused on historical shortcomings in Coinbase, Inc.'s compliance program. Pursuant to the consent order, Coinbase, Inc. paid a $50.0 million penalty in January 2023 and agreed to invest an additional $50.0 million in its compliance function by the end of 2024.
In April 2022, a dissenting stockholder to the Company’s acquisition of FairXchange, Inc. (“FairX”) filed a Verified Petition for Appraisal of Stock in the Court of Chancery of the State of Delaware seeking, among other relief, an appraisal of the fair value of their common and preferred shares of FairX stock. Petitioners contend that the valuation of FairX was higher than the valuation ascribed by the parties at the time of the transaction. The case is captioned Hyde Park Venture Partners Fund III, L.P. et al. v. FairXchange, LLC, et al. Trial took place in November 2023 and post-trial briefing and argument is scheduled to be completed in March 2024. A settlement offer was made and rejected in November 2023. Based on the nature of the proceedings in this case, the outcome of this matter remains uncertain and the Company cannot reasonably estimate the potential impact, if any, on its business or financial statements at this time.
In June 2023, the SEC filed a complaint in the U.S. District Court for the Southern District of New York against the Company and Coinbase, Inc. alleging that Coinbase, Inc. has acted as an unregistered securities exchange, broker, and clearing agency in violation of Sections 5, 15(a) and 17A(b) of the Exchange Act and that, through its staking program, Coinbase, Inc. has offered and sold securities without registering its offers and sales in violation of Sections 5(a) and 5(c) of the Securities Act. The SEC has also alleged that the Company is liable for the alleged violations as an alleged control person of Coinbase, Inc. The case is captioned SEC v. Coinbase, Inc. et al. The SEC seeks, among other relief, injunctive relief, disgorgement and civil money penalties. The Company and Coinbase, Inc. filed an answer to the SEC complaint in June 2023, dispute the claims in this case, and intend to vigorously defend against them. On August 4, 2023, the Company and Coinbase, Inc. filed a motion for judgment on the pleadings. The SEC filed its response on October 3, 2023 and the Company and Coinbase, Inc. filed their reply on October 24, 2023. Oral argument took place on January 17, 2024. Based on the preliminary nature of the proceedings in this case, the outcome of this matter remains uncertain and the Company cannot estimate the potential impact, if any, on its business or financial statements at this time. An adverse resolution of the SEC’s lawsuit could have a material impact on the Company’s business and financial statements.
In June 2023, the Company and Coinbase, Inc. were issued notices, show-cause orders, and cease-and-desist letters, and became the subject of various legal actions initiated by U.S. state securities regulators in the states of Alabama, California, Illinois, Kentucky, Maryland, New Jersey, South Carolina, Vermont, Washington and Wisconsin alleging violations of state securities laws with respect to staking services provided by Coinbase, Inc. In July 2023, the Company and Coinbase, Inc. entered into agreements with state securities regulators in California, New Jersey, South Carolina and Wisconsin, pursuant to which customers in those states will no longer be able to stake new funds, in each case pending final adjudication of the matters. In October 2023, the Company and Coinbase, Inc. entered into a similar agreement with the Maryland state securities regulator. The Company and Coinbase, Inc. dispute the claims of the state securities regulators and intend to vigorously defend against them. Based on the preliminary nature of these actions, the final outcome of these matters remains uncertain and the Company cannot estimate the potential impact on its business or financial statements at this time. An adverse resolution could have a material impact on the Company’s business and financial statements.
The Company has, from time to time, received investigative subpoenas and requests from regulators for documents and information about certain customer programs, operations, and existing and intended future products, including the Company’s processes for listing assets, the classification of certain listed assets, its staking programs, and its stablecoin and yield-generating products.
Except as otherwise disclosed, the Company believes the ultimate resolution of existing legal and regulatory investigation matters will not have a material adverse effect on the financial condition, results of
operations, or cash flows of the Company. However, in light of the uncertainties inherent in these matters, it is possible that the ultimate resolution of one or more of these matters may have a material adverse effect on the Company’s results of operations for a particular period, and future changes in circumstances or additional information could result in additional accruals or resolution in excess of established accruals, which could adversely affect the Company’s results of operations, potentially materially.
Tax regulation
Current promulgated tax rules related to crypto assets are unclear and require significant judgments to be made in interpretation of the law, including but not limited to the areas of income tax, information reporting, transaction level taxes and the withholding of tax at source. Additional legislation or guidance may be issued by U.S. and non-U.S. governing bodies that may differ significantly from the Company's practices or interpretation of the law, which could have unforeseen effects on the Company’s financial condition and results of operations, and accordingly, the related impact on the Company’s financial condition and results of operations is not estimable.
v3.24.0.1
RELATED PARTY TRANSACTIONS
 12 Months Ended
Dec. 31, 2023
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS RELATED PARTY TRANSACTIONS
Revenue and accounts receivable
Certain of the Company’s directors, executive officers, and principal owners, including immediate family members, are users of the Company’s platform. The Company recognized revenue from related party customers of $17.9 million, $12.9 million and $29.1 million for the years ended December 31, 2023, 2022 and 2021, respectively. As of December 31, 2023 and 2022, amounts receivable from related party customers were $3.4 million and $1.3 million, respectively.
Customer assets and liabilities
As of December 31, 2023 and 2022, safeguarding customer crypto assets and safeguarding customer crypto liabilities for related parties were $8.8 billion and $3.5 billion, respectively. As of December 31, 2023 and 2022, customer custodial funds and customer custodial cash liabilities due to related party customers were $348.0 million and $14.2 million, respectively.
Prepaid and other assets
During the years ended December 31, 2023 and 2022, the Company invested an aggregate of $4.0 million and $13.8 million, respectively, in investees in which certain related parties of the Company held an interest over 10%.
Expenses
During the year ended December 31, 2023, the Company incurred $2.5 million for professional and consulting services provided by entities affiliated with related parties. There were no professional and consulting services provided by entities affiliated with related parties to note during the years ended December 31, 2022 and 2021.
v3.24.0.1
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
 12 Months Ended
Dec. 31, 2023
Supplemental Cash Flow Elements [Abstract]  
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Changes in operating assets and liabilities affecting cash were as follows (in thousands):
Year Ended December 31,
202320222021
USDC$254,571 $(848,138)$(77,471)
Accounts and loans receivable80,375 (141,023)28,511 
Deposits in transit(115,391)28,952 (36,527)
Income taxes, net8,547 1,906 (62,145)
Other current and non-current assets28,033 19,237 (20,060)
Accounts payable954 18,612 27,330 
Lease liabilities(39,733)(10,223)(20,596)
Other current and non-current liabilities108,850 (100,771)302,396 
Net changes in operating assets and liabilities$326,206 $(1,031,448)$141,438 
Reconciliation of cash, cash equivalents, and restricted cash (in thousands):
Year Ended December 31,
202320222021
Cash and cash equivalents$5,139,351 $4,425,021 $7,123,478 
Restricted cash22,992 25,873 30,951 
Customer custodial cash4,393,086 4,978,752 10,526,233 
Total cash, cash equivalents, and restricted cash$9,555,429 $9,429,646 $17,680,662 
Supplemental schedule of non-cash investing and financing activities were as follows (in thousands):
Year Ended December 31,
202320222021
Crypto assets borrowed$450,663 $920,379 $1,134,876 
Crypto assets borrowed repaid with crypto assets559,191 1,432,688 609,600 
Crypto loans originated396,981 — — 
Crypto loans repaid469,763 — — 
Non-cash assets received as collateral255,383 26,874 — 
Non-cash assets received as collateral returned282,257 — — 
Non-cash assets pledged as collateral156,963 58,377 — 
Non-cash assets pledged as collateral returned163,460 — — 
Non-cash consideration paid for business combinations51,494 324,925 571,196 
Purchase of crypto assets and investments with non-cash consideration27,977 19,967 13,511 
Realized gain on crypto assets held as investments48,491 — — 
Disposal of crypto assets and investments for non-cash consideration42,551 617 — 
Changes in right-of-use assets and operating lease obligations17,530 3,059 27,286 
v3.24.0.1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Pay vs Performance Disclosure      
Net income (loss) $ 94,871 $ (2,624,949) $ 3,624,120
v3.24.0.1
Insider Trading Arrangements
 3 Months Ended 12 Months Ended
Dec. 31, 2023
shares
Dec. 31, 2023
shares
Trading Arrangements, by Individual    
Non-Rule 10b5-1 Arrangement Adopted false  
Rule 10b5-1 Arrangement Terminated false  
Non-Rule 10b5-1 Arrangement Terminated false  
Alesia Haas [Member]    
Trading Arrangements, by Individual    
Material Terms of Trading Arrangement  
The Company’s directors and officers (as defined in Rule 16a-1(f) under the Exchange Act) (“Section 16 officers”) are only permitted to trade in the Company’s securities pursuant to a prearranged trading plan intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act (a “Rule 10b5-1 Plan”). During the three months ended December 31, 2023, one of the Company’s Section 16 officers adopted a Rule 10b5-1 Plan. Additionally, during the three months ended December 31, 2023, entities affiliated with one of the Company’s directors adopted prearranged trading plans intended by such entities to qualify as Rule 10b5-1 Plans. All such Rule 10b5-1 Plans were entered into during an open trading window in accordance with the Company’s Insider Trading Policy and Trading Plan Policy.
On December 1, 2023, Alesia Haas, the Company’s Chief Financial Officer, entered into a Rule 10b5-1 Plan (the “Haas Plan”) providing for the potential sale of (a) up to 255,565 shares of Class A common stock owned by Ms. Haas and (b) the number of shares of Class A common stock necessary to cover the exercise price, taxes, commissions and fees associated with the exercise of up to 686,873 shares of Class A common stock pursuant to stock options owned by Ms. Haas, in each case, so long as the market price of the Class A common stock satisfies certain threshold prices specified in the Haas Plan, between an estimated start date of March 5, 2024 and December 31, 2024, or earlier, upon the completion of all transactions subject to the trading arrangements specified in the Haas Plan or the occurrence of certain events set forth therein.
On November 29, 2023, Andreessen Horowitz Fund Ill, L.P., Andreessen Horowitz Fund Ill-A, L.P., Andreessen Horowitz Fund III-B, L.P., Andreessen Horowitz Fund III-Q, L.P., AH Parallel Fund III, L.P., AH Parallel Fund Ill-A, L.P., AH Parallel Fund III-B, L.P., AH Parallel Fund III-Q, L.P., Andreessen Horowitz LSV Fund I, L.P., Andreessen Horowitz LSV Fund I-B, L.P., and Andreessen Horowitz LSV Fund I-Q, L.P. (collectively, the “Funds”), each of which is an affiliate of Marc Andreessen, a member of the Company’s board of directors, entered into a Rule 10b5-1 Plan (the “a16z Plan”) providing for the potential distribution of up to 14,018,115 shares of Class A common stock owned by the Funds to the limited partners of the Funds (the “Distributions”), so long as the market price of the Class A common stock is higher than certain minimum threshold prices specified in the a16z Plan, during the period beginning on January 2, 2024 and ending on May 26, 2024, such earlier date as the distribution of all shares specified in the a16z Plan is completed or the occurrence of certain events set forth therein.
On December 1, 2023, AH Capital Management, L.L.C., an affiliate of Mr. Andreessen, a member of the Company’s board of directors, entered into a Rule 10b5-1 Plan (the “AH Capital Plan”) providing for the sale of any and all shares of Class A common stock received by AH Capital Management, L.L.C. in connection with the Distributions by the Funds, during the period beginning on January 2, 2024 and ending on May 26, 2024, such earlier date as sale of all shares specified in the AH Capital Plan is completed or the occurrence of certain events set forth therein.
Name Alesia Haas  
Title Chief Financial Officer  
Rule 10b5-1 Arrangement Adopted true  
Adoption Date December 1, 2023  
Arrangement Duration 301 days  
Andreessen Horowitz Funds [Member]    
Trading Arrangements, by Individual    
Material Terms of Trading Arrangement  
The Company’s directors and officers (as defined in Rule 16a-1(f) under the Exchange Act) (“Section 16 officers”) are only permitted to trade in the Company’s securities pursuant to a prearranged trading plan intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act (a “Rule 10b5-1 Plan”). During the three months ended December 31, 2023, one of the Company’s Section 16 officers adopted a Rule 10b5-1 Plan. Additionally, during the three months ended December 31, 2023, entities affiliated with one of the Company’s directors adopted prearranged trading plans intended by such entities to qualify as Rule 10b5-1 Plans. All such Rule 10b5-1 Plans were entered into during an open trading window in accordance with the Company’s Insider Trading Policy and Trading Plan Policy.
On December 1, 2023, Alesia Haas, the Company’s Chief Financial Officer, entered into a Rule 10b5-1 Plan (the “Haas Plan”) providing for the potential sale of (a) up to 255,565 shares of Class A common stock owned by Ms. Haas and (b) the number of shares of Class A common stock necessary to cover the exercise price, taxes, commissions and fees associated with the exercise of up to 686,873 shares of Class A common stock pursuant to stock options owned by Ms. Haas, in each case, so long as the market price of the Class A common stock satisfies certain threshold prices specified in the Haas Plan, between an estimated start date of March 5, 2024 and December 31, 2024, or earlier, upon the completion of all transactions subject to the trading arrangements specified in the Haas Plan or the occurrence of certain events set forth therein.
On November 29, 2023, Andreessen Horowitz Fund Ill, L.P., Andreessen Horowitz Fund Ill-A, L.P., Andreessen Horowitz Fund III-B, L.P., Andreessen Horowitz Fund III-Q, L.P., AH Parallel Fund III, L.P., AH Parallel Fund Ill-A, L.P., AH Parallel Fund III-B, L.P., AH Parallel Fund III-Q, L.P., Andreessen Horowitz LSV Fund I, L.P., Andreessen Horowitz LSV Fund I-B, L.P., and Andreessen Horowitz LSV Fund I-Q, L.P. (collectively, the “Funds”), each of which is an affiliate of Marc Andreessen, a member of the Company’s board of directors, entered into a Rule 10b5-1 Plan (the “a16z Plan”) providing for the potential distribution of up to 14,018,115 shares of Class A common stock owned by the Funds to the limited partners of the Funds (the “Distributions”), so long as the market price of the Class A common stock is higher than certain minimum threshold prices specified in the a16z Plan, during the period beginning on January 2, 2024 and ending on May 26, 2024, such earlier date as the distribution of all shares specified in the a16z Plan is completed or the occurrence of certain events set forth therein.
On December 1, 2023, AH Capital Management, L.L.C., an affiliate of Mr. Andreessen, a member of the Company’s board of directors, entered into a Rule 10b5-1 Plan (the “AH Capital Plan”) providing for the sale of any and all shares of Class A common stock received by AH Capital Management, L.L.C. in connection with the Distributions by the Funds, during the period beginning on January 2, 2024 and ending on May 26, 2024, such earlier date as sale of all shares specified in the AH Capital Plan is completed or the occurrence of certain events set forth therein.
Name Andreessen Horowitz  
Title member of the Company’s board of directors  
Rule 10b5-1 Arrangement Adopted true  
Adoption Date November 29, 2023  
Arrangement Duration 145 days  
Aggregate Available 14,018,115 14,018,115
AH Capital Management, L.L.C. [Member]    
Trading Arrangements, by Individual    
Material Terms of Trading Arrangement  
The Company’s directors and officers (as defined in Rule 16a-1(f) under the Exchange Act) (“Section 16 officers”) are only permitted to trade in the Company’s securities pursuant to a prearranged trading plan intended to satisfy the affirmative defense of Rule 10b5-1(c) under the Exchange Act (a “Rule 10b5-1 Plan”). During the three months ended December 31, 2023, one of the Company’s Section 16 officers adopted a Rule 10b5-1 Plan. Additionally, during the three months ended December 31, 2023, entities affiliated with one of the Company’s directors adopted prearranged trading plans intended by such entities to qualify as Rule 10b5-1 Plans. All such Rule 10b5-1 Plans were entered into during an open trading window in accordance with the Company’s Insider Trading Policy and Trading Plan Policy.
On December 1, 2023, Alesia Haas, the Company’s Chief Financial Officer, entered into a Rule 10b5-1 Plan (the “Haas Plan”) providing for the potential sale of (a) up to 255,565 shares of Class A common stock owned by Ms. Haas and (b) the number of shares of Class A common stock necessary to cover the exercise price, taxes, commissions and fees associated with the exercise of up to 686,873 shares of Class A common stock pursuant to stock options owned by Ms. Haas, in each case, so long as the market price of the Class A common stock satisfies certain threshold prices specified in the Haas Plan, between an estimated start date of March 5, 2024 and December 31, 2024, or earlier, upon the completion of all transactions subject to the trading arrangements specified in the Haas Plan or the occurrence of certain events set forth therein.
On November 29, 2023, Andreessen Horowitz Fund Ill, L.P., Andreessen Horowitz Fund Ill-A, L.P., Andreessen Horowitz Fund III-B, L.P., Andreessen Horowitz Fund III-Q, L.P., AH Parallel Fund III, L.P., AH Parallel Fund Ill-A, L.P., AH Parallel Fund III-B, L.P., AH Parallel Fund III-Q, L.P., Andreessen Horowitz LSV Fund I, L.P., Andreessen Horowitz LSV Fund I-B, L.P., and Andreessen Horowitz LSV Fund I-Q, L.P. (collectively, the “Funds”), each of which is an affiliate of Marc Andreessen, a member of the Company’s board of directors, entered into a Rule 10b5-1 Plan (the “a16z Plan”) providing for the potential distribution of up to 14,018,115 shares of Class A common stock owned by the Funds to the limited partners of the Funds (the “Distributions”), so long as the market price of the Class A common stock is higher than certain minimum threshold prices specified in the a16z Plan, during the period beginning on January 2, 2024 and ending on May 26, 2024, such earlier date as the distribution of all shares specified in the a16z Plan is completed or the occurrence of certain events set forth therein.
On December 1, 2023, AH Capital Management, L.L.C., an affiliate of Mr. Andreessen, a member of the Company’s board of directors, entered into a Rule 10b5-1 Plan (the “AH Capital Plan”) providing for the sale of any and all shares of Class A common stock received by AH Capital Management, L.L.C. in connection with the Distributions by the Funds, during the period beginning on January 2, 2024 and ending on May 26, 2024, such earlier date as sale of all shares specified in the AH Capital Plan is completed or the occurrence of certain events set forth therein.
Name AH Capital Management, L.L.C.  
Title member of the Company’s board of directors  
Rule 10b5-1 Arrangement Adopted true  
Adoption Date December 1, 2023  
Arrangement Duration 145 days  
Ms. Haas Trading Arrangement, Class A Common Stock [Member] | Alesia Haas [Member]    
Trading Arrangements, by Individual    
Aggregate Available 255,565 255,565
Ms. Haas Trading Arrangement, Securities To Cover Exercise Price, Taxes, Commissions And Fees [Member] | Alesia Haas [Member]    
Trading Arrangements, by Individual    
Aggregate Available 686,873 686,873
v3.24.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
 12 Months Ended
Dec. 31, 2023
Accounting Policies [Abstract]  
Basis of presentation and principles of consolidation
Basis of presentation and principles of consolidation
The accompanying consolidated financial statements have been prepared in accordance with United States generally accepted accounting principles (“GAAP”), and 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 consolidated financial statements, the basis of presentation of such subsidiaries is converted to GAAP. All intercompany accounts and transactions have been eliminated in consolidation.
Reclassifications
Reclassifications
Certain prior period amounts have been reclassified in order to conform with the current period presentation. These reclassifications have no impact on the Company’s previously reported consolidated results.
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 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 performance stock-based awards issued; the useful lives of long-lived assets; the impairment of long-lived assets; the valuation of privately-held strategic investments, including impairments; the fair value of safeguarding customer crypto assets and liabilities; the identification and valuation of assets acquired and liabilities assumed in business combinations; the fair value of derivatives and related hedges; loss contingency identification and valuation, including assessing the likelihood of adverse outcomes from positions, claims, and disputes, recoveries of losses recorded, and associated timing.
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 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.
Foreign currency transactions
Foreign currency transactions
The Company’s functional currency is the U.S. dollar. The Company has exposure to foreign currency translation gains and losses arising from the Company’s net investment in foreign subsidiaries. The revenues, expenses, and financial results of these foreign subsidiaries are recorded in their respective functional currencies. The financial statements of these subsidiaries are translated into U.S. dollars using a current rate of exchange, with gains or losses, net of tax as applicable, included in accumulated other comprehensive income (loss) (“AOCI”) within the consolidated statements of changes in preferred stock and stockholders’ equity. Cumulative translation adjustments are released from AOCI and recorded in the consolidated statements of operations when the Company disposes or loses control of a consolidated subsidiary. Gains and losses resulting from remeasurement are recorded in other expense (income), net within the consolidated statements of operations.
Realized gains and losses on foreign exchange resulting from the settlement of the Company’s foreign currency assets and liabilities and unrealized impacts on foreign exchange resulting from remeasurement of transactions and monetary assets and liabilities denominated in non-functional currencies are recognized as a component of other (income) expense, net on the consolidated statements of operations.
Fair value measurements
Fair value measurements
The Company measures certain assets and liabilities at fair value. The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is estimated by applying the following hierarchy, which prioritizes the inputs used to measure fair value into three levels and bases the categorization within the hierarchy upon the lowest level of input that is available and significant to the fair value measurement:
•Level 1: Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities.
•Level 2: Observable inputs other than quoted prices in active markets for identical assets and liabilities, quoted prices for identical or similar assets or liabilities in inactive markets, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities.
•Level 3: Inputs that are generally unobservable and typically reflect management’s estimate of assumptions that market participants would use in pricing the asset or liability.
Cash and cash equivalents
Cash and cash equivalents
Cash and cash equivalents include cash and interest-bearing highly liquid investments held at financial institutions, cash on hand that is not restricted as to withdrawal or use with an initial maturity of three months or less, and cash held in accounts at venues. Venues include other crypto asset trading platforms that hold money transmitter licenses and payment processors. Cash and cash equivalents excludes customer legal tender, which is reported separately as customer custodial funds on the accompanying consolidated balance sheets. Refer to Customer custodial funds and customer custodial cash liabilities below for further details.
Restricted cash
Restricted cash
The Company has restricted cash deposits at financial institutions related to operational restricted deposits.
Customer custodial funds and customer custodial cash liabilities
Customer custodial funds and customer custodial cash liabilities
Customer custodial funds represent restricted cash and cash equivalents maintained in segregated Company bank accounts that are held for the exclusive benefit of customers and deposits in transit from payment processors and financial institutions. Under GAAP, the balance in these accounts that exceeds customer custodial cash liabilities is presented within cash and cash equivalents. Customer custodial cash liabilities represent the obligation to return cash deposits held by customers in their fiat wallets and unsettled fiat deposits and withdrawals. Deposits in transit represent settlements from third-party payment processors and banks for customer transactions. Deposits in transit are typically received within five 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 deposit settles. In certain jurisdictions, deposits in transit qualify as eligible liquid assets to meet regulatory requirements to fulfill the Company’s direct obligations under customer custodial cash liabilities. The Company restricts the use of the assets underlying the customer custodial funds to meet regulatory requirements and classifies the assets as current based on their purpose and availability to fulfill the Company’s direct obligation under customer custodial cash liabilities.
Certain jurisdictions where the Company operates require the Company to hold eligible liquid assets, as defined by applicable regulatory requirements and commercial law in these jurisdictions, equal to at least 100% of the aggregate amount of all customer custodial cash liabilities. Depending on the jurisdiction, eligible liquid assets can include cash and cash equivalents, customer custodial funds, and certain other customer receivables. As of December 31, 2023 and 2022, the Company’s eligible liquid assets were greater than the aggregate amount of customer custodial cash liabilities.
USDC
USDC
USDC is a stablecoin redeemable on a one-to-one basis for U.S. dollars. USDC is accounted for as a financial instrument on the consolidated balance sheets.
Accounts and loans receivable and allowance for doubtful accounts
Accounts and loans receivable and allowance for doubtful accounts
Accounts and loans receivable are contractual rights to receive cash or crypto assets either on demand or on fixed or determinable dates, and are recognized as an asset on the consolidated balance sheets. Accounts receivable consists of stablecoin revenue receivable, customer fee revenue receivable, and other receivables. Loans receivable consists of fiat loans receivable and crypto asset loans receivable.
Stablecoin revenue receivable represents the pro rata portion of income earned and receivable on USDC reserves through the Company’s arrangement with the issuer of USDC. Revenue derived by the Company from this arrangement is dependent on various factors including the balance of USDC on the Company’s platform, the total market capitalization of USDC, and the prevailing interest rate environment.
Customer fee accounts receivable primarily comprise receivables from custodial fee revenue and other subscription and services revenue, which includes fees earned from providing services such as dedicated secure cold storage, staking, delegation, infrastructure, financing, and software licenses. Receivables are recorded at the transaction price, representing consideration to which the Company expects to be entitled to in exchange for satisfying performance obligations. For obligations satisfied over time, receivables are recognized as revenue is earned, typically monthly. For obligations satisfied at a point in time, receivables are recognized when the obligation is complete.
Fiat loans receivable represents cash loans made to institutions, and prior to November 20, 2023, to consumers. These loans are collateralized with USDC or certain crypto assets held by those users on the Company’s platform. The Company generally does not have the right to use such collateral unless the borrower defaults on the loans. See Collateral below for additional details regarding the Company’s obligation to return collateral. Fiat loans receivable are measured at amortized cost. The carrying value of the loans approximates their fair value due to their short-term duration of less than 12 months.
Crypto asset loans receivable represents crypto asset loans made to institutions. These loans are collateralized with fiat, USDC, or certain crypto assets held by those users on the Company’s platform. Crypto asset loans receivable are initially and subsequently measured at the fair value of the underlying crypto asset lent and adjusted for expected credit losses.
The Company also loans USDC. When USDC is loaned, it is not derecognized from the consolidated balance sheets as the Company maintains effective control over the transferred USDC. Therefore, there are no USDC loans receivable recorded, and the loaned USDC remains presented in USDC in the consolidated balance sheets.
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 fiat loans receivable and crypto asset loans receivable, the Company applies the collateral maintenance provision practical expedient. Due to the collateral requirements the Company applies to such loans, the Company’s process for collateral maintenance, and collateral held on the Company’s platform, the Company’s credit exposure is significantly limited and no allowance, write-offs or recoveries were recorded against fiat loans receivable or crypto asset loans receivable for the periods presented. 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. Due to the nature of the collateral the Company requires to be pledged, the Company is readily able to liquidate in the case of the borrower’s default.
Collateral
Collateral
Company assets pledged as collateral
The Company enters into fiat, USDC, and crypto asset borrowing arrangements with certain institutional customers that require the Company to pledge collateral in the form of fiat, USDC, or crypto assets in which the lender may have the right to sell, repledge, or rehypothecate such collateral without the Company’s consent. The Company also enters into certain derivative contracts which require the Company to pledge collateral in the form of fiat. The Company is required to maintain a collateral to loan ratio per the borrowing arrangements.

If the lender has the right to use the collateral or if the collateral is fiat, the Company presents the collateral pledged as a right to receive the collateral within prepaid expenses and other current assets in the consolidated balance sheets. The lender is not obligated to return collateral equal to the fair value of the borrowings if the Company defaults on its borrowings. As of December 31, 2023, the Company has not defaulted on any of its borrowings.

Borrower assets pledged as collateral
For loans receivable, the Company requires borrowers to pledge collateral, for which it may then be required to record a corresponding obligation to return the collateral to the borrower. As of December 31, 2023, the collateral requirements ranged from 115% to 250% of the fair value of the loan, and the borrower is required to pledge additional assets to maintain their required collateral percentage. The Company may have the right to use collateral pledged by the borrower. If the Company has the right to use collateral denominated in USDC, crypto assets, or fiat, the Company records the collateral as an asset within USDC, crypto assets held, or cash and cash equivalents, respectively, with a corresponding obligation to return collateral within accrued expenses and other current liabilities, in the consolidated balance sheets. For collateral denominated in USDC or crypto assets that is pledged against fiat loans receivable, the Company will only record the collateral if it has also been subsequently sold. The Company is not obligated to return collateral equal to the fair value of the borrowings if the borrower defaults. Due to the nature of the collateral the Company requires to be pledged by borrowers, the Company is readily able to liquidate in the case of the borrower’s default.
Off-balance sheet collateral arrangements
The Company may pledge USDC collateral to lenders which are not recognized as assets pledged as collateral as they do not meet the derecognition criteria. This collateral continues to be shown within USDC on the consolidated balance sheets.
The Company may receive collateral denominated in USDC or crypto assets pledged by borrowers where the Company does not have a right to use the collateral and does not recognize it on the consolidated balance sheets since the collateral does not meet the recognition criteria.
Concentration of credit risk
Concentration of credit risk
The Company’s cash and cash equivalents, restricted cash, customer custodial funds, and accounts and loans receivable are potentially subject to concentration of credit risk. Cash and cash equivalents, restricted cash, and customer custodial funds are primarily placed with financial institutions which are of high credit quality. The Company invests cash and cash equivalents and customer custodial funds primarily in highly liquid, highly rated instruments which are uninsured. The Company may also have corporate deposit balances with financial institutions which exceed the Federal Deposit Insurance Corporation insurance limit of $250,000. The Company has not experienced losses on these accounts and does not believe it is exposed to any significant credit risk with respect to these accounts. The
Company also holds cash and crypto at crypto asset trading venues and payment processors and performs a regular assessment of these venues as part of its risk management process.
The issuer of USDC reported that, as of December 31, 2023, underlying reserves were held in cash, short-duration U.S. Treasuries, and overnight U.S. Treasury repurchase agreements within segregated accounts for the benefit of USDC holders.
As of December 31, 2023 and 2022, the Company had four and one counterparties, respectively, who accounted for more than 10% of the Company’s accounts and loans receivable, net. See Note 13. Collateral for details on collateralization of loans receivable.
During the years ended December 31, 2023 and 2022, no counterparty accounted for more than 10% of total revenue, respectively.
Crypto assets held
Crypto assets held
The crypto assets held by the Company, with no qualifying fair value hedge, are accounted for as intangible assets with indefinite useful lives, and are initially measured at cost. Crypto assets accounted for as intangible assets are subject to impairment losses if the fair value of crypto assets decreases below the carrying value at any time during the period. The fair value is measured using the quoted price of the crypto asset at the time its fair value is being measured in the Company’s principal market. Gross impairments, net of subsequent realized gains on the sale and disposal of previously impaired crypto assets held are reflected in crypto asset impairment, net in the consolidated statements of operations. The Company assigns costs to crypto assets on a first-in, first-out basis.
Crypto assets held as the hedged item in qualifying fair value hedges are initially measured at cost. Subsequent changes in fair value attributable to the hedged risk are adjusted to the carrying amount of these crypto assets, with changes in fair value recorded in other operating expense, net in the consolidated statements of operations.
The Company recognizes crypto assets received through airdrops or forks if the crypto asset is expected to generate probable future benefit and if the Company is able to support the trading, custody, or withdrawal of these assets. The Company records the crypto assets received through airdrops or forks at their cost.
Leases
Leases
The Company determines if an arrangement is a lease at inception. Operating leases are included in lease right-of-use (“ROU”) assets and lease liabilities on the consolidated balance sheets. ROU assets represent the Company’s right to use an underlying asset for the lease term and lease liabilities represent the Company’s obligation to make lease payments arising from the lease. Operating lease ROU assets and liabilities are recognized at commencement date based on the present value of future minimum lease payments over the lease term. Most leases do not provide an implicit rate, so the Company uses its incremental borrowing rate. The operating lease ROU assets also include any lease payments made before commencement and exclude lease incentives.
The Company’s lease terms may include options to extend or terminate the lease when it is reasonably certain that those options will be exercised. Lease expense for lease payments is recognized on a straight-line basis over the lease term. The Company has made the policy election to account for short-term leases by recognizing the lease payments in profit or loss on a straight-line basis over the lease term and not recognizing these leases on the consolidated balance sheets. Variable lease payments are recognized in profit or loss in the period in which the obligation for those payments is incurred. The Company has real estate lease agreements with lease and non-lease components for which the Company has made the accounting policy election to account for these agreements as a single lease component.
Property and equipment
Property and equipment
Property and equipment is stated at cost less accumulated depreciation. Depreciation is computed using the straight-line method over the lesser of the estimated useful life of the asset or the remaining lease term. The estimated useful lives of the Company’s property, equipment, and software are generally as follows:
Property and EquipmentUseful Life
Furniture and fixtures
Three to five years
Computer equipment
Two to five years
Leasehold improvements
Lesser of useful life or remaining lease term
Capitalized software
One to three years
Capitalized software consists of costs incurred during the application development stage of internal-use software or implementation of a hosting arrangement that is a service contract. Capitalized costs consist of salaries and other compensation costs for employees, fees paid to third-party consultants who are directly involved in development efforts, and costs incurred for upgrades and enhancements to add functionality of the software. Other costs that do not meet the capitalization criteria are expensed as incurred.
The Company evaluates impairments of its property and equipment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. If the asset is not recoverable, measurement of an impairment loss is based on the fair value of the asset. When an impairment loss is recognized, the carrying amount of the asset is reduced to its estimated fair value.
Business combinations
Business combinations, goodwill, and acquired intangible assets
The results of businesses acquired in a business combination are included in the consolidated financial statements from the date of the acquisition. The Company accounts for its business combinations using the acquisition method of accounting, which requires, among other things, allocation of the fair value of purchase consideration to the tangible and intangible assets acquired and liabilities assumed 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 circumstances that existed at the date of acquisition, 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 consolidated statements of operations.
Goodwill and acquired intangible assets
Goodwill is tested for impairment at the reporting unit level on an annual basis (October 1 for the Company) and between annual tests if an event occurs or circumstances change that would more likely than not reduce the fair value of a reporting unit below its carrying value. For the periods presented, the Company did not have any goodwill impairment charges.
Acquired intangible assets with a definite useful life are amortized over their estimated useful lives on a straight-line basis. Each period, the Company evaluates the estimated remaining useful life of its intangible assets and whether events or changes in circumstances warrant a revision to the remaining period of amortization. Intangible assets assessed as having indefinite lives are not amortized, but are assessed for indicators that the useful life is no longer indefinite or for indicators of impairment each period.
The Company evaluates the recoverability of acquired intangible assets on an annual basis, or more frequently whenever circumstances indicate an intangible asset may be impaired. When indicators of impairment exist, the Company estimates future undiscounted cash flows attributable to such assets. In the event future undiscounted cash flows do not exceed the carrying amount of the assets, the asset would be considered impaired. The impairment loss is measured based upon the difference between the carrying amount and the fair value of the assets.
Investments
Investments
The Company holds strategic investments, which are included in other non-current assets on the consolidated balance sheets. The Company’s strategic investments primarily include equity investments in privately held companies without readily determinable fair values where the Company (1) holds less than 20% ownership in the entity, and (2) does not exercise significant influence. These investments are recorded at cost and adjusted for observable transactions for same or similar investments of the same issuer (referred to as the measurement alternative) or impairment.
Crypto asset borrowings
Crypto asset borrowings
The Company borrows USDC and crypto assets from third parties on a secured and unsecured basis. When USDC is borrowed, it is not recorded on the consolidated balance sheets as the transfer criteria in ASC Topic 860, Transfers and Servicing, have not been met. Crypto assets borrowed by the Company are reported in crypto assets held on the consolidated balance sheets.
Crypto asset borrowings are accounted for as hybrid instruments, with a liability host contract that contains an embedded derivative based on the changes in the fair value of the underlying crypto asset. The host contract is not accounted for as a debt instrument because it is not a financial liability, is carried at the initial fair value of the assets acquired and reported in crypto asset borrowings on the consolidated balance sheets. The embedded derivative is accounted for at fair value, with changes in fair value recognized in other operating expense, net in the consolidated statements of operations. The embedded derivatives are included in crypto asset borrowings on the consolidated balance sheets.
The term of these borrowings either can be for a fixed term of less than one year or open-ended and repayable at the option of the Company or the lender. These borrowings bear a fee payable by the Company to the lender, which is based on a percentage of the amount borrowed and is denominated in the related crypto asset borrowed. The borrowing fee is recognized on an accrual basis and is included in other operating expense, net in the consolidated statements of operations.
Derivatives contracts
Derivative contracts
Derivative contracts derive their value from underlying asset prices, other inputs, or a combination of these factors. Derivative contracts are recognized as either assets or liabilities on the consolidated balance sheets at fair value, with changes in fair value recognized in other operating expense, net. Cash flows from derivative contracts are recognized as investing activities and adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities in the consolidated statements of cash flows.
The Company enters into arrangements that result in obtaining the right to receive or obligation to deliver a fixed amount of crypto assets in the future. These are hybrid instruments, consisting of a receivable or debt host contract that is initially measured at the fair value of the underlying crypto assets and is subsequently carried at amortized cost, and an embedded forward feature based on the changes in the fair value of the underlying crypto asset. The embedded forward is bifurcated from the host contract, and is subsequently measured at fair value.
Derivatives designated as hedges
The Company applies hedge accounting to certain derivatives executed for risk management purposes. To qualify for hedge accounting, a derivative must be highly effective at reducing the risk associated with the exposure being hedged. The Company uses fair value hedges primarily to hedge the fair value exposure of crypto asset prices. Derivative amounts affecting earnings are recognized in the same line item as the earnings effect of the hedged item.
Saeguarding customer crypto assets and liabilities
Safeguarding customer crypto assets and liabilities
The Company safeguards crypto assets for customers in digital wallets and portions of cryptographic keys necessary to access crypto assets on the Company’s platform. The Company safeguards these assets and/or keys and is obligated to safeguard them from loss, theft, or other misuse. The Company records safeguarding customer crypto assets and liabilities, in accordance with Staff Accounting Bulletin 121 (“SAB 121”). The Company maintains a record of all crypto assets in digital wallets held on the Company’s platform as well as the full or a portion of private keys including backup keys, which are maintained on behalf of customers. For crypto assets where the customer can transact without the involvement of the Company or crypto assets where the Company does not maintain a private key or the ability to recover a customer’s private key or their crypto assets, these balances are not recorded, as there is no related safeguarding obligation in accordance with SAB 121. The Company records the safeguarding customer crypto assets and liabilities, on the initial recognition and at each reporting date, at the fair value of the crypto assets which it safeguards for its customers.
The Company is committed to securely storing all customer crypto assets and cryptographic keys (or portions thereof) held on behalf of customers. The value of these safeguarded assets is recorded as safeguarding customer crypto liabilities and corresponding safeguarding customer crypto assets. As such, the Company may be liable to its customers for losses arising from theft or loss of private keys. The Company has no reason to believe it will incur any expense associated with such potential liability because (i) it has no known or historical experience of claims to use as a basis of measurement, (ii) it accounts for and continually verifies the amount of crypto assets on its platform, and (iii) it has established security around private key management to minimize the risk of theft or loss. The Company has adopted a number of measures to safeguard crypto assets it secures including, but not limited to, holding customer crypto assets on a 1:1 basis and strategically storing custodied assets offline using the Company’s cold storage process. The Company also does not reuse or rehypothecate customer crypto
assets nor grant security interests in customer crypto assets, in each case unless required by law or expressly agreed to by the institutional customer. Any loss or theft would impact the measurement of the customer crypto assets.
Long-term debt and interest expense
Long-term debt and interest expense
Long-term debt is carried at amortized cost. The Company accounted for the 2026 Convertible Notes wholly as debt because (1) the conversion features do not require bifurcation as a derivative under ASC Topic 815, Derivatives and Hedging, and (2) the 2026 Convertible Notes were not issued at a substantial discount.
The Company recognizes gains and losses on extinguishment of long-term debt as the difference between the reacquisition price and the net carrying amount of the debt, and these gains and losses are recognized in current-period earnings in other expense (income), net in the consolidated statements of operations.
Debt discounts and debt issuance costs are amortized to interest expense using the effective interest method over the contractual term of the respective note.
The Capped Calls meet the criteria for classification in equity, are not remeasured each reporting period and are included as a reduction to additional paid-in capital within stockholders’ equity.
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.
Transaction revenue
Consumer 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.
The Company’s service comprises a single performance obligation to provide a crypto asset matching service when customers buy, sell or convert crypto assets, or trade derivatives. 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 to provide the crypto asset to the customer (net). The Company does not control the crypto asset being provided before it is transferred to the buyer, does not have inventory risk related to the crypto asset, and is not responsible for the fulfillment of the crypto asset. The Company also does not set the price for the crypto asset as the price is a market rate established by users of the platform. As a result, the Company acts as an agent in facilitating the ability for a customer to purchase crypto assets from another customer.
The Company considers its performance obligation satisfied, and recognizes revenue, at the point in time the transaction is processed. Contracts with customers are usually open-ended and can be terminated by either party without a termination penalty. Therefore, contracts are defined at the transaction level and do not extend beyond the service already provided.
The Company charges a fee at the transaction level. The transaction price, represented by the transaction fee, is calculated based on volume and varies depending on payment type and the value of the transaction. Crypto asset purchase or sale transactions executed by a customer on the Company’s platform is based on tiered pricing that is driven primarily by transaction volume processed for a specific historical period. The Company has concluded that this volume-based pricing approach does not constitute a future material right since the discount is within a range typically offered to a class of customers with similar volume. The transaction fee is collected from the customer at the time the transaction is executed. In certain instances, the transaction fee can be collected in crypto assets, with revenue measured based on the amount of crypto assets received and the fair value of the crypto assets at the time of the transaction.
The transaction price includes estimates for reductions in revenue from transaction fee reversals that may not be recovered from customers. Such reversals occur when the customer disputes a transaction processed on their credit card or their bank account for a variety of reasons and seeks to have the charge reversed after the Company has processed the transaction. These amounts are estimated based upon the most likely amount of consideration to which the Company will be entitled. All estimates are based on historical experience and the Company’s best judgment at the time to the extent it is probable that a significant reversal of revenue recognized will not occur. All estimates of variable consideration are reassessed periodically. The total transaction price is allocated to the single performance obligation. While the Company recognizes transaction fee reversals as a reduction of net revenue, crypto asset losses related to those same transaction reversals are included in transaction expense.
Stablecoin revenue
Since 2018, the Company has earned income on fiat funds under an arrangement with the issuer of USDC which was included in interest income within subscriptions and services revenue. On August 18, 2023, the Company entered into an updated arrangement with the same counterparty. Pursuant to the arrangement, the Company earns a pro rata portion of income earned on USDC reserves based on the amount of USDC held on each respective party’s platform, and from the distribution and usage of USDC after certain expenses. Revenue derived by the Company from this arrangement is dependent on various factors including the balance of USDC on the Company’s platform, the total market capitalization of
USDC, and the prevailing interest rate environment. The arrangement is treated as an executory contract accounted for on an accrual basis. Prior period revenue recognized under the previous arrangement was reclassified to the stablecoin revenue line within subscription and services revenue, to conform to current period presentation.
Blockchain rewards
Blockchain rewards primarily comprises staking revenue, in which the Company participates in networks with proof-of-stake consensus algorithms through creating or validating blocks on the network using the staking validators that it controls. Blockchain protocols, or the participants that form the protocol networks, reward users for performing various activities on the blockchain. The most common form today is participating in proof-of-stake networks, however, there are other consensus algorithms. The Company considers itself the principal in transactions with the blockchain networks, and therefore presents such blockchain rewards earned on a gross basis. In exchange for participating in the consensus mechanism of these networks, the Company recognizes revenue in the form of the native token of the network. Each block creation or validation is a performance obligation. Revenue is recognized at the point when the block creation or validation is complete and the rewards are transferred into a digital wallet that the Company controls. Revenue is measured based on the number of tokens received and the fair value of the token at contract inception.
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 earned from customer custodial funds, cash and cash equivalents and loans 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 and loans is included in interest income within subscription and services revenue. Interest earned on the Company’s corporate cash and cash equivalents is included in corporate interest and other income within other revenue.
Custodial fee revenue
The Company provides a dedicated secure cold storage solution to customers and earns a fee, which is based on a contractual percentage of the daily value of assets under custody. The fee is collected on a monthly basis. These contracts typically have one performance obligation which is provided and satisfied over the term of the contracts as customers simultaneously receive and consume the benefits of the services. The contract may be terminated by a customer at any time, without incurring a penalty. Customers are billed on the last day of the month during which services were provided, with the amounts generally being due within thirty days of receipt of the invoice.
Other subscription and services revenue
Other subscription and services revenue primarily comprises revenue from Coinbase One, Coinbase Cloud, which includes staking application, delegation, and infrastructure services, Prime Financing, and revenue from other subscription licenses. Generally, revenue from other subscription and services contains one performance obligation, may have variable and non-cash consideration, and is recognized at a point in time or over the period that services are provided.
Transaction expense
Transaction expense
Transaction expense includes costs incurred to operate the Company’s platform, process crypto asset trades, and perform wallet services. These costs include blockchain rewards distributed to customers for their participation in blockchain activities such as staking, account verification fees, and fees paid to payment processors and other financial institutions for customer transaction activity, contract acquisition costs, crypto asset losses due to transaction reversals, and miner fees to process transactions on blockchain networks. Transaction expense also includes rewards paid to users for staking activities
conducted by the Company. Fixed-fee costs are expensed over the term of the contract and transaction-level costs are expensed as incurred. The Company has elected to apply the practical expedient to recognize the incremental costs of obtaining a contract as an expense when incurred if the amortization period of the asset that would otherwise have been recognized is one year or less.
Technology and development
Technology and development
Technology and development expenses include personnel-related expenses incurred in operating, maintaining, and enhancing the Company’s platform and in developing new products and services. These costs also include website hosting and infrastructure expenses, and the amortization of internally developed and acquired developed technology. Certain costs of developing new products and services are capitalized to property and equipment, net.
Sales and marketing and General and administrative
Sales and marketing
Sales and marketing expenses primarily include personnel-related expenses, marketing programs costs, and costs related to customer acquisition. Sales and marketing costs are expensed as incurred.
General and administrative
General and administrative expenses include personnel-related expenses incurred to support the Company’s business, including executive, customer support, compliance, finance, human resources, legal, and other support operations. These costs also include software subscriptions for support services, facilities and equipment costs, depreciation, amortization of acquired customer relationship intangible assets, gains and losses on disposal of fixed assets, indirect taxes, accrued legal contingencies and settlements, and other general overhead. General and administrative costs are expensed as incurred.
Other operating expense, net
Other operating expense, net
Other operating expense, net includes realized gains and losses resulting from the settlement of derivative instruments and fair value gains and losses related to derivatives and derivatives designated in qualifying fair value hedge accounting relationships.
Other operating expense, net also includes the cost of the Company’s crypto assets used to fulfill customer accommodation transactions. Periodically, as an accommodation to customers, the Company may fulfill customer transactions using its own crypto assets. The Company has custody and control of the crypto assets prior to the sale to the customer. Accordingly, the Company records the total value of the sale in other revenue and the cost of the crypto asset in other operating expense, net. Contributions towards political action committees are also included in other operating expense, net.
Other (income) expense, net
Other (income) expense, net
Other (income) expense, net includes net gains on the repurchase of certain of the Company’s long-term debt, realized foreign exchange gains and losses resulting from the settlement of the Company’s foreign currency assets and liabilities, and unrealized foreign exchange impacts resulting from remeasurement of transactions and monetary assets and liabilities denominated in non-functional currencies, and impairment recognized on certain strategic equity investments in privately held companies without readily determinable fair values and gains and losses on investments, net, which consists primarily of realized and unrealized gains and losses from fair value adjustments. Unrealized gains and losses from fair value adjustments on certain financial instruments are also included in other (income) expense, net.
Stock-based compensation
Stock-based compensation
The Company recognizes stock-based compensation expense using a fair-value based method for costs related to all equity awards granted under its equity incentive plans to employees, directors, and non-employees of the Company including restricted stock, RSUs, stock options, and purchase rights granted under the ESPP.
Valuation
The fair value of restricted stock and RSUs is estimated based on the fair value of the Company’s common stock on the date of grant.
The Company estimates the fair value of stock options with only service-based conditions and purchase rights under the ESPP on the date of grant using the Black-Scholes-Merton Option-Pricing Model. The model requires management to make a number of assumptions, including the fair value and expected volatility of the Company’s underlying common stock price, expected life of the option, risk-free interest rate, and expected dividend yield, which are calculated as follows:
•The fair value of the underlying stock is the fair value of the Company’s common stock on the date of grant. Prior to the Direct Listing, this fair value was determined using the probability weighted expected return method, with a discounted cash flow model or a market multiples method used for each expected outcome. Following the Direct Listing, this fair value is the closing price of the Company’s Class A common stock as reported on the Nasdaq Global Select Market on the grant date.
•The expected stock price volatility assumption for the Company’s stock is determined by using a weighted average of the historical stock price volatility of comparable companies from a representative peer group, as sufficient trading history for the Company’s common stock is not available.
•The Company uses historical exercise information and contractual terms of options to estimate the expected term.
•The risk-free interest rate for periods within the expected life of the option is based on the U.S. Treasury zero coupon bonds with terms consistent with the expected term of the award at the time of grant.
•The expected dividend yield assumption is based on the Company’s history and expectation of no dividend payouts.
The Company has two types of performance awards outstanding: performance stock options subject to a market condition and performance RSUs subject to both a market condition and a financial performance condition. The Company determines the fair value of performance awards subject to a market condition using a Monte Carlo Simulation Model (a binomial lattice-based valuation model). The Monte Carlo Simulation Model uses multiple input variables to determine the probability of satisfying the market condition requirements. The fair values of the awards are not subject to change based on future market conditions. The fair value of performance RSUs, or tranches thereof, subject to a financial performance condition is estimated based on the fair value of the Company’s Class A common stock on the date of grant.
Expense attribution
Stock-based compensation expense for RSUs and stock options with only service-based conditions, and purchase rights under the ESPP, is recorded on a straight-line basis over the requisite service period. The Company has elected to account for forfeitures of awards as they occur, with previously recognized compensation reversed in the period that the awards are forfeited.
The Company uses the accelerated attribution method to recognize expense over the requisite service period for performance awards, or tranches thereof, subject to a market condition. Once the associated performance condition, if any, becomes probable of being achieved, regardless of whether or not the market condition is ultimately satisfied, stock-based compensation expense is recognized according to the market-based fair value measured on the grant date and subject to continued service over the period.
For performance awards, or tranches thereof, subject to financial performance conditions, the Company evaluates the cumulative revenue and the cumulative adjusted EBITDA results at each reporting date to determine which performance condition and level of achievement becomes most probable of being achieved for the assessment period. Once a threshold of achievement is reached, stock-based compensation expense is recognized over the requisite service period based on the result that is probable of occurring at each reporting date until the final vesting date, subject to continued service over the period.
Early exercise option
Certain stock options granted provide employee option holders the right to exercise unvested options for restricted common stock, which is subject to a repurchase right held by the Company at the original purchase price in the event the optionee’s employment is terminated either voluntarily or involuntarily prior to vesting of the exercised stock. Early exercises of options are not deemed to be substantive exercises for accounting purposes and accordingly, amounts received for early exercises are recorded as a liability. These repurchase terms are considered to be a forfeiture provision and do not result in variable accounting. These amounts are reclassified to common stock and additional paid in capital as the underlying shares vest.
Income taxes
Income taxes
The Company accounts for income taxes using the asset and liability method whereby deferred tax asset and liability account balances are determined based on temporary differences between the financial statement and tax bases of assets and liabilities using enacted tax rates in effect for the year in which the differences are expected to affect taxable income. A valuation allowance is established when management estimates that it is more likely than not that deferred tax assets will not be realized. Realization of deferred tax assets is dependent upon future pre-tax earnings, the reversal of temporary differences between book and tax income, and the expected tax rates in future periods.
The Company is required to evaluate the tax positions taken in the course of preparing its tax returns to determine whether tax positions are more likely than not of being sustained by the applicable tax authority. Tax benefits of positions not deemed to meet the “more-likely-than-not” threshold would be recorded as a tax expense in the current year. The amount recognized is subject to estimate and management judgment with respect to the likely outcome of each uncertain tax position. The amount that is ultimately sustained for an individual uncertain tax position or for all uncertain tax positions in the aggregate could differ from the amount that is initially recognized. It is the Company’s practice to recognize interest and penalties related to income tax matters in income tax expense.
For U.S. federal tax purposes, crypto asset transactions are treated on the same tax principles as property transactions. The Company recognizes a gain or loss when crypto assets are exchanged for other property, in the amount of the difference between the fair market value of the property received and the tax basis of the exchanged crypto assets. Receipts of crypto assets in exchange for goods or services are included in taxable income at the fair market value on the date of receipt.
Net income (loss) per share
Net income (loss) per share
The Company computes net income (loss) per share using the two-class method required for participating securities. The two-class method requires income available to common stockholders for the period to be allocated between common stock and participating securities based upon their respective rights to receive dividends as if all income for the period had been distributed. The Company’s preferred stock and certain of its restricted common stock were deemed participating securities. These participating securities do not contractually require the holders of such shares to participate in the Company’s losses.
Basic net income (loss) per share is computed using the weighted-average number of outstanding shares of common stock during the period. Diluted net income (loss) per share is computed using the weighted-average number of outstanding shares of common stock and, when dilutive, potential shares of common stock outstanding during the period. Potential shares of common stock consist of incremental shares issuable upon the assumed exercise of stock options and warrants, vesting of RSUs, vesting of restricted common stock, conversion of the Company’s preferred stock and convertible notes, and settlement of contingent consideration.
Segment reporting
Segment reporting
Operating segments are defined as components of an entity for which separate financial information is available and that is regularly reviewed by the Chief Operating Decision Maker (the “CODM”) in deciding how to allocate resources to an individual segment and in assessing performance. The Company’s Chief Executive Officer is the Company’s CODM. The CODM reviews financial information presented on a global consolidated basis for purposes of making operating decisions, allocating resources, and evaluating financial performance. As such, the Company has determined that it operates as one operating segment and one reportable segment.
Recent accounting pronouncements
Recent accounting pronouncements
Accounting pronouncements pending adoption
On December 14, 2023, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures (“ASU 2023-09”). ASU 2023-09 requires that entities disclose specific categories in their rate reconciliation and provide additional information for reconciling items that meet a quantitative threshold. The new standard is effective for the Company beginning December 15, 2024, with early adoption permitted effective for fiscal years beginning January 1, 2024. The Company is currently evaluating the impact of adopting the standard.
On December 14, 2023, FASB issued Accounting Standards Update No. 2023-08, Accounting for and Disclosure of Crypto Assets (“ASU 2023-08”), which requires entities that hold crypto assets to subsequently measure such assets at fair value with changes recognized in net income each reporting period. The guidance also requires crypto assets measured at fair value to be presented separately from other intangible assets on the balance sheet and changes in the fair value measurement of crypto assets to be presented separately on the income statement from changes in the carrying amounts of other intangible assets. The new standard is effective for the Company beginning December 15, 2024, with early adoption permitted. The Company adopted ASU 2023-08 on January 1, 2024 and will apply the modified retrospective transition approach. While the Company is in the process of finalizing implementation, based on a preliminary assessment, the Company anticipates it will recognize an incremental $720 million to $760 million increase in fair value on crypto assets held with the corresponding cumulative-effect adjustment amount recorded to the opening balance of retained earnings.
On November 27, 2023, FASB issued Accounting Standards Update No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures (“ASU 2023-07”), which requires that an entity disclose significant segment expenses impacting profit and loss that are regularly provided to the chief operating decision maker. The update is required to be applied retrospectively to prior periods presented, based on the significant segment expense categories identified and disclosed in the period of adoption. The amendments in ASU 2023-07 are required to be adopted for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impact of adopting the standard.
v3.24.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 12 Months Ended
Dec. 31, 2023
Accounting Policies [Abstract]  
Schedule of property and equipment The estimated useful lives of the Company’s property, equipment, and software are generally as follows:
Property and EquipmentUseful Life
Furniture and fixtures
Three to five years
Computer equipment
Two to five years
Leasehold improvements
Lesser of useful life or remaining lease term
Capitalized software
One to three years
Property and equipment consisted of the following (in thousands):
December 31,
20232022
Capitalized software$293,467 $198,537 
Leasehold improvements17,131 45,262 
Furniture and fixtures125 7,217 
Computers and equipment2,554 5,852 
Total property and equipment, gross
313,277 256,868 
Accumulated depreciation and amortization(120,727)(85,015)
Total property and equipment, net
$192,550 $171,853 
v3.24.0.1
RESTRUCTURING (Tables)
 12 Months Ended
Dec. 31, 2023
Restructuring and Related Activities [Abstract]  
Restructuring and related costs The following expenses were recognized within restructuring expenses in the consolidated statements of operations during the year ended December 31, 2023 (in thousands):
Year Ended December 31, 2023
Separation pay$56,733 
Stock-based compensation(1)
84,042 
Other personnel costs1,819 
Total$142,594 
__________________
(1)Represents stock-based compensation expenditures for the year ended December 31, 2023 relating to the acceleration of the vesting of outstanding equity awards in accordance with the terms of such awards.
The following expenses were recognized within restructuring expenses in the consolidated statements of operations for the year ended December 31, 2022 (in thousands):
Year Ended December 31, 2022
Separation pay$38,741 
Other personnel costs 1,962 
Total$40,703 
Schedule of restructuring reserve by type of cost
The following table summarizes the balance of the 2023 Restructuring reserve and the changes in the reserve as of and for the year ended December 31, 2023 (in thousands):
Expenses Incurred(1)
Payments
Adjustments(2)
Accrued Balance as of December 31, 2023
Separation pay$57,745 $(56,733)$(1,012)$— 
Other personnel costs2,702 (1,819)(883)— 
Total$60,447 $(58,552)$(1,895)$— 
_________________
(1)Excludes stock-based compensation as it was not reflected in the Company’s restructuring reserve on the consolidated balance sheets.
(2)Reductions of $1.0 million and $0.9 million during the year ended December 31, 2023 were due to the release of accruals for certain separation pay expenses and other personnel costs, respectively, recorded as of March 31, 2023, which were not utilized.
The following table summarizes the balance of the 2022 Restructuring reserve and the changes in the reserve as of and for the year ended December 31, 2022 (in thousands):
Expenses IncurredPaymentsAdjustmentsAccrued Balance as of December 31, 2022
Separation pay$39,259 $(38,741)$(518)$— 
Other personnel costs3,194 (1,962)(1,232)— 
Total$42,453 $(40,703)$(1,750)$— 
v3.24.0.1
ACQUISITIONS (Tables)
 12 Months Ended
Dec. 31, 2023
Business Combination and Asset Acquisition [Abstract]  
Schedule of business acquisitions by acquisition
The total consideration transferred in the acquisition was $96.8 million, consisting of the following (in thousands):
Cash$30,830 
Cash payable1,005 
Previously-held interest on acquisition date20,000 
Class A common stock of the Company44,995 
   Total purchase consideration$96,830 
The total consideration transferred in the acquisition was $258.0 million, consisting of the following (in thousands):
Cash$151,424 
Cash payable126 
Class A common stock of the Company103,977 
RSUs for shares of the Company’s Class A common stock2,457 
Total purchase consideration$257,984 
The total consideration transferred in the acquisition was $275.1 million, consisting of the following (in thousands):
Cash$56,726 
Cash payable10,442 
Class A common stock of the Company - issued174,229 
Class A common stock of the Company - to be issued33,693 
Total purchase consideration$275,090 
The total consideration transferred in the acquisition was $457.3 million, consisting of the following (in thousands):
Class A common stock of the Company$389,314 
Previously held interest on acquisition date10,863 
Cash28,726 
Replacement of Bison Trails options28,365 
Total purchase consideration$457,268 
The total consideration transferred in these acquisitions was $211.0 million, consisting of the following (in thousands):
Class A common stock of the Company - issued
$65,717 
Class A common stock of the Company - to be issued
58,173 
RSUs3,019 
Cash62,425 
Cash payable5,918 
Contingent consideration arrangement15,752 
Total purchase consideration
$211,004 
Schedule of recognized identified assets acquired and liabilities assumed
The results of operations and the provisional fair values of the assets acquired and liabilities assumed have been included in the consolidated financial statements as of the date of acquisition. The following table summarizes the preliminary fair values of assets acquired and liabilities assumed as of the date of acquisition (in thousands):
Goodwill$65,764 
Intangible assets, net21,100 
Other assets and liabilities, net9,966 
Net assets acquired$96,830 
The results of operations and the fair values of the assets acquired and liabilities assumed have been included in the consolidated financial statements from the date of acquisition. The following table summarizes the preliminary fair values of assets acquired and liabilities assumed as of the date of acquisition (in thousands):
Goodwill$222,732 
Intangible assets28,500 
Other assets and liabilities, net6,752 
Net assets acquired$257,984 
The following table summarizes the preliminary fair values of assets acquired and liabilities assumed as of the date of acquisition (in thousands):
Goodwill$231,685 
Intangible assets41,000 
Other assets and liabilities, net2,405 
Net assets acquired$275,090 
The results of operations and the fair values of the assets acquired and liabilities assumed have been included in the consolidated financial statements from the date of acquisition. The following table summarizes the estimated fair values of assets acquired and liabilities assumed using a cost-based approach (in thousands):
Goodwill$404,167 
Intangible assets39,100 
Other assets and liabilities, net14,001 
Net assets acquired$457,268 
The results of operations and the fair values of the assets acquired and liabilities assumed have been included in the consolidated financial statements from the respective dates of acquisition. The following table summarizes the aggregate estimated fair values of assets acquired and liabilities assumed using a cost-based approach (in thousands):
Goodwill$144,379 
Intangible assets62,100 
Other assets and liabilities, net4,525 
Net assets acquired$211,004 
Schedule of components of finite lived and indefinite lived identifiable intangible assets acquired
The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in thousands, except for years data):
Fair ValueUseful Life at Acquisition (in years)
Licenses$1,100 Indefinite
Customer relationships17,100 6
In-process research and development (“IPR&D”)2,900 N/A
The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in thousands, except for years data):
Fair ValueUseful Life at Acquisition (in Years)
Developed technology$15,700 
1 - 5
IPR&D2,500 N/A
Customer relationships10,300 2
The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in thousands, except for years data):
Fair ValueUseful Life at Acquisition (in Years)
DCM License$26,900 Indefinite
Developed technology10,700 5
Trading relationships3,400 3
The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in thousands, except for years data):
Fair ValueUseful Life at Acquisition (in Years)
Developed technology$36,000 3
IPR&D1,200 N/A
User base1,900 3
The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the dates of acquisition (in thousands, except for years data):
Fair ValueUseful Life at Acquisition (in Years)
Developed technology$45,900 2.5
User base1,000 2.5
IPR&D2,300 N/A
Customer relationships12,900 4.3
v3.24.0.1
REVENUE (Tables)
 12 Months Ended
Dec. 31, 2023
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):
Year Ended December 31,
202320222021
Net revenue
Transaction revenue
Consumer, net$1,429,490 $2,236,900 $6,490,992 
Institutional, net90,164 119,344 346,274 
Total transaction revenue1,519,654 2,356,244 6,837,266 
Subscription and services revenue
Stablecoin revenue694,247 245,710 9,882 
Blockchain rewards330,885 275,507 223,055 
Interest income173,914 81,246 15,953 
Custodial fee revenue69,501 79,847 136,293 
Other subscription and services revenue138,339 110,261 132,304 
Total subscription and services revenue1,406,886 792,571 517,487 
Total net revenue2,926,540 3,148,815 7,354,753 
Other revenue
Corporate interest and other income181,827 44,768 2,141 
Crypto asset sales revenue16 625 482,550 
Total other revenue181,843 45,393 484,691 
Total revenue$3,108,383 $3,194,208 $7,839,444 
Schedule of revenues disaggregated by geography
In the table below are the revenues disaggregated by geography, based on domicile of the customers, as applicable (in thousands):
Year Ended December 31,
202320222021
United States$2,725,620 $2,684,425 $6,339,270 
Rest of the World(1)
382,763 509,783 1,500,174 
     Total revenue$3,108,383 $3,194,208 $7,839,444 
__________________
(1)No other individual country accounted for more than 10% of total revenue.
v3.24.0.1
ACCOUNTS AND LOANS RECEIVABLE, NET OF ALLOWANCE (Tables)
 12 Months Ended
Dec. 31, 2023
Receivables [Abstract]  
Schedule of accounts receivable, net of allowance
Accounts and loans receivable, net of allowance consisted of the following (in thousands):
December 31,December 31,
20232022
Accounts receivable
Stablecoin revenue receivable$57,885 $179,996 
Customer fee revenue receivable(1)
23,603 23,014 
Other accounts receivable(1)
109,361 28,837 
Gross accounts receivable190,849 231,847 
Allowance for doubtful accounts receivable
(22,559)(11,500)
Net accounts receivable168,290 220,347 
Loans receivable(2)
Fiat loans receivable(3)
171,196 98,203 
Crypto asset loans receivable22,229 85,826 
Total loans receivable193,425 184,029 
Total accounts and loans receivable, net of allowance$361,715 $404,376 
__________________
(1)Includes accounts receivable denominated in crypto assets. See Note 15. Derivatives for additional details.
(2)As of December 31, 2023 and 2022, loans receivable did not include $205.6 million and $2.8 million of USDC loaned, respectively, as these loaned assets did not meet the criteria for derecognition.
(3)As of December 31, 2023, the entire balance comprised institutional fiat loans, while as of December 31, 2022, the entire balance comprised consumer fiat loans. Consumer fiat loans were discontinued in November 2023.
v3.24.0.1
LEASES (Tables)
 12 Months Ended
Dec. 31, 2023
Leases [Abstract]  
Components of lease cost
The components of lease cost were as follows (in thousands):
Year Ended December 31,
202320222021
Operating lease cost$40,429 $36,724 $34,074 
Short-term lease cost4,304 707 374 
Total lease cost$44,733 $37,431 $34,448 
Other information related to leases was as follows as of:
December 31,
20232022
Weighted-average remaining lease term (in years)1.51.2
Weighted-average discount rate4.05 %3.01 %
Maturities of lease liabilities
Maturities of lease liabilities were as follows (in thousands):
2024$11,235 
20253,124 
2026792 
Total lease payments15,151 
Less imputed interest(428)
Total$14,723 
v3.24.0.1
PROPERTY AND EQUIPMENT, NET (Tables)
 12 Months Ended
Dec. 31, 2023
Property, Plant and Equipment [Abstract]  
Schedule of property and equipment The estimated useful lives of the Company’s property, equipment, and software are generally as follows:
Property and EquipmentUseful Life
Furniture and fixtures
Three to five years
Computer equipment
Two to five years
Leasehold improvements
Lesser of useful life or remaining lease term
Capitalized software
One to three years
Property and equipment consisted of the following (in thousands):
December 31,
20232022
Capitalized software$293,467 $198,537 
Leasehold improvements17,131 45,262 
Furniture and fixtures125 7,217 
Computers and equipment2,554 5,852 
Total property and equipment, gross
313,277 256,868 
Accumulated depreciation and amortization(120,727)(85,015)
Total property and equipment, net
$192,550 $171,853 
Schedule of long-lived assets by geographic areas
Long-lived assets, which consisted of property and equipment, net and operating lease ROU assets, by geography were as follows (in thousands):
December 31,
20232022
United States$198,810 $229,737 
Rest of the World(1)
6,477 11,473 
Total long-lived assets$205,287 $241,210 
________________
(1)No other individual country accounted for more than 10% of total long-lived assets.
v3.24.0.1
GOODWILL, INTANGIBLE ASSETS, NET AND CRYPTO ASSETS HELD (Tables)
 12 Months Ended
Dec. 31, 2023
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of goodwill
The following table reflects the changes in the carrying amount of goodwill (in thousands):
Year Ended December 31,
20232022
Balance, beginning of period$1,073,906 $625,758 
Additions due to business combinations65,764 454,417 
Measurement period adjustments(1)
— (6,269)
Balance, end of period$1,139,670 $1,073,906 
__________________
(1)The measurement period adjustments during the year ended December 31, 2022 consisted of $4.1 million, $0.3 million and $1.9 million related to the Unbound acquisition, the FairX acquisition, and certain other acquisitions that were material when aggregated, respectively, and which were associated with the changes in deferred tax assets as a result of changes in estimates. There were no measurement period adjustments during the year ended December 31, 2023.
Schedule of finite-lived intangible assets
Intangible assets, net and their associated weighted average remaining useful lives (“Life”) consisted of the following (in thousands, except years data):
December 31, 2023December 31, 2022
Gross Carrying AmountAccumulated AmortizationIntangible Assets, NetLifeGross Carrying AmountAccumulated AmortizationIntangible Assets, NetLife
Amortizing intangible assets
Acquired developed technology$124,291 $(105,139)$19,152 2.5$126,692 $(81,172)$45,520 2.3
Customer relationships103,791 (66,279)37,512 3.186,691 (45,717)40,974 2.6
Assembled workforce60,800 (60,800)— 060,800 (44,857)15,943 0.4
Other5,802 (4,294)1,508 1.010,676 (4,834)5,842 1.7
Indefinite-lived intangible assets
Licenses28,000 — 28,000 N/A26,900 — 26,900 N/A
Other250 — 250 N/A250 — 250 N/A
        Total$322,934 $(236,512)$86,422 $312,009 $(176,580)$135,429 
Schedule of indefinite-lived intangible assets
Intangible assets, net and their associated weighted average remaining useful lives (“Life”) consisted of the following (in thousands, except years data):
December 31, 2023December 31, 2022
Gross Carrying AmountAccumulated AmortizationIntangible Assets, NetLifeGross Carrying AmountAccumulated AmortizationIntangible Assets, NetLife
Amortizing intangible assets
Acquired developed technology$124,291 $(105,139)$19,152 2.5$126,692 $(81,172)$45,520 2.3
Customer relationships103,791 (66,279)37,512 3.186,691 (45,717)40,974 2.6
Assembled workforce60,800 (60,800)— 060,800 (44,857)15,943 0.4
Other5,802 (4,294)1,508 1.010,676 (4,834)5,842 1.7
Indefinite-lived intangible assets
Licenses28,000 — 28,000 N/A26,900 — 26,900 N/A
Other250 — 250 N/A250 — 250 N/A
        Total$322,934 $(236,512)$86,422 $312,009 $(176,580)$135,429 
Crypto assets held consisted of the following (in thousands):
December 31,December 31,
20232022
Recorded at impaired cost
Crypto assets held as investments$330,610 $155,251 
Crypto assets held for operating purposes74,103 67,577 
Total crypto assets held recorded at impaired cost404,713 222,828 
Recorded at fair value(1)
Crypto assets held as investments— 133,416 
Crypto assets borrowed45,212 68,149 
Total crypto assets held recorded at fair value45,212 201,565 
Total crypto assets held$449,925 $424,393 
__________________
(1)Recorded at fair value as these crypto assets are held as the hedged item in qualifying fair value hedges.
Schedule of finite-lived intangible assets, future amortization expense
The expected future amortization expense for amortizing intangible assets as of December 31, 2023 is as follows (in thousands):
202425,649 
202517,400 
20268,782 
20273,026 
20282,855 
Thereafter460 
Total expected future amortization expense$58,172 
Schedule of impaired intangible assets
Crypto asset impairment, net comprised the following (in thousands):
Year Ended December 31,
202320222021
Gross crypto asset impairment expense$96,783 $757,257 $329,152 
Recoveries(131,458)(35,046)(175,992)
Crypto asset impairment, net$(34,675)$722,211 $153,160 
v3.24.0.1
CUSTOMER ASSETS AND LIABILITIES (Tables)
 12 Months Ended
Dec. 31, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Schedule of customers' cash and crypto positions
The following table presents customers’ cash and safeguarded crypto positions (in thousands):
December 31,December 31,
20232022
Customer custodial funds$4,570,845 $5,041,119 
Safeguarding customer crypto assets192,583,060 75,413,188 
Total customer assets$197,153,905 $80,454,307 
Customer custodial cash liabilities$4,570,845 $4,829,587 
Safeguarding customer crypto liabilities192,583,060 75,413,188 
Total customer liabilities$197,153,905 $80,242,775 
Platform operator, crypto-asset
The following table sets forth the fair values of safeguarding customer crypto assets that were greater than 5% of the total safeguarding customer crypto assets recorded, as shown on the consolidated balance sheets (in thousands, except percentages):
December 31, 2023December 31, 2022
Fair Value
Percentage of Total(1)
Fair Value
Percentage of Total(1)
Bitcoin$89,864,637 47 %$32,468,926 43 %
Ethereum(2)
40,200,059 21 %20,858,121 28 %
Solana12,906,278 6 %1,233,451 1 %
Other crypto assets49,612,086 26 %20,852,690 28 %
Total safeguarding customer crypto assets$192,583,060 100 %$75,413,188 100 %
__________________
(1)As of December 31, 2023 and 2022, no assets other than Bitcoin, Ethereum, and Solana individually represented more than 5% of total safeguarding customer crypto assets.
(2)As of December 31, 2023 and 2022, Ethereum included $10.1 billion and $3.0 billion, respectively, of staked Ethereum.
v3.24.0.1
PREPAID EXPENSES AND OTHER CURRENT AND NON-CURRENT ASSETS (Tables)
 12 Months Ended
Dec. 31, 2023
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):    
December 31,December 31,
20232022
Prepaid expenses and other current assets
Prepaid expenses$79,552 $98,204 
Assets pledged as collateral(1)
53,071 100,007 
Other16,191 18,837 
Total prepaid expenses and other current assets$148,814 $217,048 
Other non-current assets
Strategic investments(2)
$343,045 $326,683 
Deposits16,250 10,989 
Other3,590 17,257 
Total other non-current assets$362,885 $354,929 
_______________
(1) Includes $51.9 million and $58.4 million as of December 31, 2023 and 2022, respectively, of the right to receive a fixed amount of USDC and BTC pledged as collateral. See Note 13. Collateral, for additional details on assets pledged as collateral.
(2) Includes $12.7 million and $11.4 million as of December 31, 2023 and 2022, respectively, of strategic investments in tokens and debt securities that are recorded at their impaired cost basis.
Schedule of other investments accounted for under the measurement alternative
The changes in the carrying value of strategic investments accounted for under the measurement alternative are presented below (in thousands):
Year Ended December 31,
20232022
Carrying amount, beginning of period$315,285 $352,431 
Net additions(1)
60,979 62,975 
Upward adjustments62 900 
Previously held interest in ORDAM (see Note 4)(20,000)— 
Impairments and downward adjustments(25,980)(101,021)
Carrying amount, end of period$330,346 $315,285 
__________________
(1)Net additions include additions from purchases and reductions due to exits of securities and reclassifications due to changes to capital structure.
v3.24.0.1
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables)
 12 Months Ended
Dec. 31, 2023
Payables and Accruals [Abstract]  
Schedule of accounts payable and accrued expenses
Accrued expenses and other current liabilities consisted of the following (in thousands):
December 31,December 31,
20232022
Accrued payroll and payroll related$224,237 $90,257 
Other accrued expenses89,254 75,532 
Income taxes payable17,366 5,534 
Obligation to return collateral(1)
1,063 26,874 
Short-term borrowings— 20,519 
Other payables(2)
115,130 112,520 
Total accrued expenses and other current liabilities$447,050 $331,236 
__________________
(1)See Note 13. Collateral for additional details on obligation to return collateral.
(2)Includes other payables denominated in crypto assets. See Note 15. Derivatives for additional details.
v3.24.0.1
COLLATERAL (Tables)
 12 Months Ended
Dec. 31, 2023
Receivables [Abstract]  
Schedule of collateral posted
The Company’s assets pledged as collateral and recognized within prepaid expenses and other current assets in the consolidated balance sheets, consisted of the following (in thousands, except units):
December 31, 2023December 31, 2022
UnitsFair ValueUnitsFair Value
USDC(1)
51,879,705 $51,880 47,633,897 $47,634 
Bitcoin(2)
— — 650 10,743 
FiatN/A1,191 N/A41,630 
Total$53,071 $100,007 
_________________
(1) As of December 31, 2023 and 2022, the Company had pledged USDC that served exclusively as collateral for certain crypto asset borrowings with a fair value of at least 100% of the loan amount outstanding.
(2) As of December 31, 2022, the Company had pledged Bitcoin that served exclusively as collateral for fiat loans with a fair value of at least 110% of the loan amount outstanding. No Bitcoin was pledged as collateral as of December 31, 2023.
Schedule of collateral received
The Company’s obligation to return borrower collateral, which is included within accrued expenses and other current liabilities in the consolidated balance sheets, by type of asset pledged as collateral, consisted of the following (in thousands, except units):
December 31, 2023December 31, 2022
UnitsFair ValueUnitsFair Value
USDC— $— 26,873,830 $26,874 
FiatN/A1,063 N/A— 
Total
$1,063 $26,874 
v3.24.0.1
INDEBTEDNESS (Tables)
 12 Months Ended
Dec. 31, 2023
Debt Disclosure [Abstract]  
Schedule of long-term debt instruments
The components of indebtedness were as follows as of December 31, 2023 (in thousands, except percentages):
IndebtednessEffective Interest RatePrincipal AmountUnamortized Debt Discount and Issuance CostsNet Carrying Amount
0.50% 2026 Convertible Notes due on June 1, 2026
0.98 %$1,273,013 $(15,378)$1,257,635 
3.38% 2028 Senior Notes due on October 1, 2028
3.57 %1,000,000 (8,218)991,782 
3.63% 2031 Senior Notes due on October 1, 2031
3.77 %737,457 (6,917)730,540 
Total$3,010,470 $(30,513)$2,979,957 
The components of indebtedness were as follows as of December 31, 2022 (in thousands, except percentages):
IndebtednessEffective Interest RatePrincipal AmountUnamortized Debt Discount and Issuance CostsNet Carrying Amount
0.50% 2026 Convertible Notes due on June 1, 2026
0.98 %$1,437,500 $(23,339)$1,414,161 
3.38% 2028 Senior Notes due on October 1, 2028
3.57 %1,000,000 (10,022)989,978 
3.63% 2031 Senior Notes due on October 1, 2031
3.77 %1,000,000 (10,691)989,309 
Total$3,437,500 $(44,052)$3,393,448 
Interest expense disclosure
The following table summarizes the interest expense for the 2026 Convertible Notes and the Senior Notes (in thousands):
Year Ended December 31,
202320222021
Coupon interest$73,861 $77,235 $24,129 
Amortization of debt discount and issuance costs8,830 8,653 5,031 
Total$82,691 $85,888 $29,160 
v3.24.0.1
DERIVATIVES (Tables)
 12 Months Ended
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Description of derivatives and related hedge accounting designation
The following outlines the Company’s derivatives:
Type of DerivativeDescription of DerivativeLocation of Host Contract and Derivative on Balance Sheets
Crypto asset futures
The Company entered into short positions on futures contracts to minimize the exposure on the change in the fair value price of crypto assets held.
Accounts and loans receivable, net of allowance
Accounts and loans receivable denominated in crypto assets
Accounts receivable denominated in crypto assets: The Company provided services for which, under the contract, the customer pays in crypto assets. The amount of crypto assets are fixed at the time of invoicing. The right to receive fixed amounts of crypto assets consists of a receivable host contract and an embedded forward contract to purchase crypto assets.

Crypto asset loans receivable: The Company lends crypto assets to institutions. The amount of crypto assets are fixed at the time of loan origination.
Accounts and loans receivable, net of allowance
Crypto assets pledged as collateral
The Company enters into certain borrowing arrangements that require the Company to post collateral in the form of crypto assets. If the lender has the right to use the crypto asset collateral, the Company presents the collateral pledged as a right to receive a fixed amount of crypto assets.
Prepaid expenses and other current assets
Foreign currency forward contractsThe Company entered into foreign currency forward contracts, with maturities of 12 months or less, to offset the foreign currency exchange risk of its assets and liabilities denominated in foreign currencies. These contracts are not designated as hedging instruments and reduce, but do not entirely eliminate, the impact of foreign currency exchange rate movements on the Company’s assets and liabilities.Prepaid expenses and other current assets/ Accrued expenses and other current liabilities
Other payables denominated in crypto assets
The Company entered into arrangements that result in the obligation to deliver a fixed amount of crypto assets in the future.
Accrued expenses and other current liabilities
Crypto asset borrowings
The Company borrowed crypto assets that resulted in the obligation to deliver a fixed amount of crypto assets in the future.
Crypto asset borrowings
Schedule of the notional amount of derivative contracts outstanding
The following table summarizes the notional amounts of derivative instruments outstanding, measured in U.S. dollar equivalents (in thousands):
December 31,December 31,
20232022
Designated as hedging instrument(1)
Crypto asset futures(2)
$— $136,230 
Crypto asset borrowings31,666 80,999 
Not designated as hedging instrument
Crypto asset futures(2)
— 12,462 
Accounts and loans receivable denominated in crypto assets16,335 101,598 
Crypto assets pledged as collateral— 13,103 
Other payables denominated in crypto assets20,092 4,267 
Crypto asset borrowings12,503 70,462 
__________________
(1)    For risk management purposes, the Company applies hedge accounting using these derivative instruments in qualifying fair value hedges to primarily hedge the fair value exposure of crypto asset prices.
(2)    Derivative notional amounts are reference amounts from which contractual payments or settlement are derived and do not represent a complete measure of the risk profile of the Company’s exposure to derivative instruments.

The following tables summarize information on derivative assets and liabilities that are reflected on the consolidated balance sheets, by accounting designation (in thousands):
Gross Derivative AssetsGross Derivative Liabilities
Not Designated as HedgesDesignated as HedgesTotal Derivative AssetsNot Designated as HedgesDesignated as HedgesTotal Derivative Liabilities
December 31, 2023
Accounts and loans receivable denominated in crypto assets$28,065 $— $28,065 $— $— $— 
Other payables denominated in crypto assets2,511 — 2,511 3,101 — 3,101 
Crypto asset borrowings(1)
26 (25)1 5,290 13,522 18,812 
Total fair value of derivative assets and liabilities$30,602 $(25)$30,577 $8,391 $13,522 $21,913 

December 31, 2022
Accounts and loans receivable denominated in crypto assets$302 $— $302 $9,146 $— $9,146 
Crypto assets pledged as collateral— — — 2,360 — 2,360 
Other payables denominated in crypto assets1,270 — 1,270 5,767 — 5,767 
Crypto asset borrowings(1)
2,266 — 2,266 657 1,653 2,310 
Total fair value of derivative assets and liabilities$3,838 $— $3,838 $17,930 $1,653 $19,583 
__________________
(1)    During the year ended December 31, 2023, the fees on these borrowings ranged from 1.5% to 10.3%. During the year ended December 31, 2022, the fees on these borrowings ranged from 0.0% to 9.0%. During the years ended December 31, 2023 and 2022, the Company incurred $4.8 million and $6.7 million of borrowing fees in crypto assets, respectively. Borrowing fees are included in other operating expense, net in the consolidated statements of operations.
The following amounts were recorded on 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, net (in thousands):
Cumulative Amount of Fair Value Hedging Adjustments Included in the Carrying Amount of Hedged Items
Carrying Amount of the Hedged ItemsActive Hedging RelationshipsDiscontinued Hedging RelationshipsTotal
December 31, 2023
Crypto assets held$45,212 $(3,946)$— $(3,946)
December 31, 2022
Crypto assets held$201,565 $(562)$670 $108 
Schedule of gains (losses) recorded in income
Gains (losses) on derivative instruments recognized in the consolidated statements of operations were as follows (in thousands):
Year Ended December 31, 2023Year Ended December 31, 2022
DerivativesHedged ItemsIncome Statement ImpactDerivativesHedged ItemsIncome Statement Impact
Designated as fair value hedging instruments
Crypto asset futures(1)
$(40,191)$46,453 $6,262 $13,571 $(12,994)$577 
Crypto asset borrowings(1)
(75,249)117,393 42,144 359,240 (359,528)(288)
Not designated as hedging instruments
Crypto asset futures(1)
(1,424)— (1,424)1,735 — 1,735 
Accounts and loans receivable denominated in crypto assets(2)
28,602 — 28,602 (24,969)— (24,969)
Crypto assets pledged as collateral(1)
— — — (2,360)— (2,360)
Foreign currency forward contracts(2)
— — — (59,063)— (59,063)
Other payables denominated in crypto assets(1)
5,014 — 5,014 5,271 — 5,271 
Crypto asset borrowings(1)
(47,160)— (47,160)11,242 — 11,242 
Other(1)
4,839 — 4,839 — — — 
Total$(125,569)$163,846 $38,277 $304,667 $(372,522)$(67,855)
__________________
(1)Changes in fair value are recognized in other operating expense, net in the consolidated statements of operations.
(2)Changes in fair value are recognized in other (income) expense, net. Foreign currency forward contracts partially offset gains and losses due to the remeasurement of certain foreign currency denominated assets and liabilities which are also recognized in other (income) expense, net in the consolidated statements of operations.
v3.24.0.1
FAIR VALUE MEASUREMENTS (Tables)
 12 Months Ended
Dec. 31, 2023
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):
December 31, 2023December 31, 2022
Level 1Level 2Level 3Level 1Level 2Level 3
Assets
Cash equivalents(1)
$3,682,917 $— $— $2,250,065 $— $— 
Customer custodial funds(2)
3,301,029 — — 2,088,132 — — 
Crypto assets held(3)
45,212 — — 201,565 — — 
Derivative assets(4)
— 30,577 — — 3,838 — 
Crypto asset loans receivable— 22,229 — — 85,826 — 
Safeguarding customer crypto assets— 192,583,060 — — 75,413,188 — 
Total assets$7,029,158 $192,635,866 $— $4,539,762 $75,502,852 $— 
Liabilities
Derivative liabilities(4)
$— $21,913 $— $— $19,583 $— 
Safeguarding customer crypto liabilities— 192,583,060 — — 75,413,188 — 
Contingent consideration arrangement— — — — — 1,855 
Total liabilities$— $192,604,973 $— $— $75,432,771 $1,855 
__________________
(1)Represents money market funds. Excludes $1.4 billion of corporate cash held in deposit at banks and $88.8 million held at venues, which were not measured and recorded at fair value as of December 31, 2023. Excludes $2.0 billion of corporate cash held in deposit at banks and $143.2 million held at venues, which were not measured and recorded at fair value as of December 31, 2022.
(2)Represents money market funds. Excludes customer custodial funds of $1.3 billion and $3.0 billion held in deposit at financial institutions and not measured and recorded at fair value as of December 31, 2023 and 2022, respectively.
(3)Includes crypto assets held that have been designated as hedged items in fair value hedges and excludes crypto assets of $404.7 million and $222.8 million held at cost as of December 31, 2023 and 2022, respectively.
(4)See Note 15. Derivatives for additional details.
Schedule of liabilities measured at fair value on a recurring basis
The following table presents a reconciliation of the contingent consideration arrangement measured at fair value on a recurring basis using significant unobservable inputs (in thousands):
Year Ended December 31,
20232022
Balance, beginning of period$1,855$14,828
Change in fair value436(8,312)
Settlement(2,291)(4,661)
Balance, end of period$—$1,855
v3.24.0.1
STOCK-BASED COMPENSATION (Tables)
 12 Months Ended
Dec. 31, 2023
Share-Based Payment Arrangement [Abstract]  
Schedule of activity of options outstanding
A summary of options activity for the year ended December 31, 2023 is as follows (in thousands, except per share and years data):
Options OutstandingWeighted Average Exercise Price per ShareWeighted Average Remaining Contractual Life (Years)Aggregate Intrinsic Value
Balance at January 1, 202331,795 $23.31 7.0$504,222 
Granted843 73.07 
Exercised(3,039)15.84 
Forfeited and cancelled(902)40.90 
Balance at December 31, 202328,697 $25.01 6.14,295,055 
Exercisable at December 31, 202322,560 $25.43 6.03,371,636 
Vested and expected to vest at December 31, 202322,593 $25.42 6.03,376,658 
Schedule of share-based payment award, options, valuation assumptions
The assumptions used under the Black-Scholes-Merton Option-Pricing Model to calculate the fair value of the options granted to employees were as follows:
Year Ended December 31,
202320222021
Dividend yield0.0 %0.0 %0.0 %
Expected volatility90.5 %59.3 %44.0 %
Expected term (in years)5.85.84.8
Risk-free interest rate3.9 %2.1 %0.5 %
Schedule of activity of RSUs outstanding
A summary of RSU activity for the year ended December 31, 2023 is as follows (in thousands, except per share data):
Number of SharesWeighted-Average Grant Date Fair Value Per Share
Balance at January 1, 20235,329 $127.85 
Granted9,408 58.04 
Vested(10,278)71.40 
Forfeited and cancelled(1,443)116.14 
Balance at December 31, 20233,016 $108.07 
Schedule of activity of PRSUs outstanding
A summary of PRSU activity for the year ended December 31, 2023 is as follows (in thousands, except per share data):
Number of SharesWeighted-Average Grant Date Fair Value Per Share
Balance at January 1, 2023— $— 
Granted804 55.42 
Balance at December 31, 2023804 $55.42 
Schedule of activity of restricted Class A common stock Activity of restricted Class A common stock is as follows (in thousands, except per share data):
Number of SharesWeighted-Average Grant Date Fair Value Per Share
Balance at January 1, 20231,275 $139.72 
Granted263 64.51 
Vested(966)132.53 
Forfeited and cancelled(29)171.85 
Balance at December 31, 2023543 $114.22 
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):
Year Ended December 31,
202320222021
Technology and development$476,478 $1,093,983 $571,861 
Sales and marketing59,000 76,153 32,944 
General and administrative245,190 395,687 215,880 
Restructuring84,042 — — 
Total$864,710 $1,565,823 $820,685 
v3.24.0.1
OTHER (INCOME) EXPENSE, NET (Tables)
 12 Months Ended
Dec. 31, 2023
Other Income and Expenses [Abstract]  
Schedule of other nonoperating income (expense)
Other (income) expense, net consisted of the following (in thousands):
Year Ended December 31,
202320222021
Foreign exchange losses, net
$10,609 $161,749 $40,989 
(Gains) losses on strategic investments
(24,368)101,219 (19,602)
Gain on extinguishment of long-term debt(117,383)— — 
Other(36,441)2,505 (924)
Total other (income) expense, net
$(167,583)$265,473 $20,463 
v3.24.0.1
INCOME TAXES (Tables)
 12 Months Ended
Dec. 31, 2023
Income Tax Disclosure [Abstract]  
Schedule of income before income tax, domestic and foreign
The components of income (loss) before income taxes were attributable to the following regions (in thousands):
Year Ended December 31,
202320222021
Domestic$(113,067)$(3,071,951)$2,977,406 
Foreign36,222 7,369 49,541 
Total income (loss) before provision for income taxes
$(76,845)$(3,064,582)$3,026,947 
Schedule of components of income tax expense (benefit)
Benefit from income taxes consisted of the following (in thousands):
Year Ended December 31,
202320222021
Current
Federal$8,761 $1,654 $(51,942)
State24,236 3,985 4,456 
Foreign11,621 22,763 8,642 
Total current44,618 28,402 (38,844)
Deferred
Federal(218,165)(361,056)(438,810)
State416 (126,713)(93,959)
Foreign1,415 19,734 (25,560)
Total deferred(216,334)(468,035)(558,329)
Total benefit from income taxes
$(171,716)$(439,633)$(597,173)
Schedule of effective income tax rate reconciliation
The effective income tax rate differs from the statutory federal income tax rate as follows:
Year Ended December 31,
202320222021
U.S. statutory rate
21.00 %21.00 %21.00 %
State income taxes, net of federal benefit6.08 5.04 (4.67)
Foreign rate differential(0.14)(0.02)(1.09)
Non-deductible compensation(48.93)(1.34)0.83 
Equity compensation43.51 (3.43)(31.95)
Adjustment to prior year provision24.85 (0.23)0.14 
Research and development (“R&D”) credits
62.20 1.40 (9.60)
Change in valuation allowance195.59 (6.37)1.65 
Foreign tax credit6.31 — — 
Foreign Derived Intangible Income (“FDII”)0.65 — — 
Global Intangible Low Taxed Income (“GILTI”)(18.55)(0.94)— 
Uncertain tax positions(56.06)(0.60)3.07 
Other(13.05)(0.16)0.89 
Effective income tax rate
223.46 %14.35 %(19.73)%
Schedule of deferred tax assets and liabilities
Significant components of the Company’s deferred tax assets and liabilities consisted of the following (in thousands):
December 31,
20232022
Deferred tax assets
Safeguarded crypto liabilities$46,437,843 $19,086,117 
Accruals and reserves13,847 6,248 
Net operating loss carryforward55,563 396,613 
Lease liability4,494 19,967 
Tax credit carryforward351,003 301,862 
Stock-based compensation21,284 24,527 
Intangibles49,255 27,022 
Capitalized expenses759,789 415,981 
Capital losses - realized / unrealized207,563 225,211 
Gross deferred tax assets47,900,641 20,503,548 
Less valuation allowance(102,250)(252,258)
Total deferred tax assets47,798,391 20,251,290 
Deferred tax liabilities
Safeguarded crypto assets(46,437,843)(19,086,117)
State taxes(13,169)(23,212)
Depreciation and amortization(32,246)(35,893)
Prepaid expenses(10,870)(5,938)
Right of use asset(3,894)(18,246)
Installment gain(10,918)(13,443)
Other(17,218)(21,650)
Total deferred tax liabilities(46,526,158)(19,204,499)
Total net deferred tax assets$1,272,233 $1,046,791 
Schedule of unrecognized tax benefits roll forward
Activity related to the Company’s unrecognized tax benefits consisted of the following (in thousands):
Year Ended December 31,
202320222021
Balance, beginning of period
$124,106 $111,019 $12,807 
Settlements— (6,128)— 
Increase related to tax positions taken during a prior year30,685 13,940 — 
Decrease related to tax positions taken during a prior year
— (9,187)— 
Increase related to tax positions taken during the current year
16,902 14,462 98,212 
Balance, end of period
$171,693 $124,106 $111,019 
Summary of valuation allowance
Activity related to the Company’s valuation allowance consisted of the following (in thousands):
Year Ended December 31,
202320222021
Balance, beginning of period$252,258 $54,383 $5,174 
Charged (credited) to expenses(150,008)197,875 49,209 
Balance, end of period$102,250 $252,258 $54,383 
v3.24.0.1
NET INCOME (LOSS) PER SHARE (Tables)
 12 Months Ended
Dec. 31, 2023
Earnings Per Share [Abstract]  
Schedule of computation of net (loss) income per share
The computation of net income (loss) per share is as follows (in thousands, except per share amounts):
Year Ended December 31,
202320222021
Basic net income (loss) per share:
Numerator
Net income (loss)$94,871 $(2,624,949)$3,624,120 
Less: Income allocated to participating securities(119)— (527,162)
Net income (loss) attributable to common stockholders, basic$94,752 $(2,624,949)$3,096,958 
Denominator
Weighted-average shares of common stock used to compute net income (loss) per share attributable to common stockholders, basic235,796 222,314 177,319 
Net income (loss) per share attributable to common stockholders, basic$0.40 $(11.81)$17.47 
Diluted net income (loss) per share:
Numerator
Net income (loss)$94,871 $(2,624,949)$3,624,120 
Less: Income allocated to participating securities(120)— (439,229)
Add: Interest on convertible notes, net of tax— — 6,208 
Less: Fair value gain on contingent consideration arrangement, net of tax— (6,230)(695)
Net income (loss) attributable to common
stockholders, diluted
$94,751 $(2,631,179)$3,190,404 
Denominator
Weighted-average shares of common stock used to compute net income (loss) per share attributable to common stockholders, basic235,796 222,314 177,319 
Weighted-average effect of potentially dilutive securities:
Stock options16,845 — 36,396 
RSUs1,605 — 3,773 
Restricted common stock145 — 9 
Warrants— — 72 
Convertible notes— — 2,388 
Contingent consideration— 24 8 
Weighted-average shares of common stock used to compute net income (loss) per share attributable to common stockholders, diluted254,391 222,338 219,965 
Net income (loss) per share attributable to common stockholders, diluted$0.37 $(11.83)$14.50 
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):
December 31,
2023 20222021
Stock options6,743 31,795 6,134 
RSUs929 5,329 151 
Convertible notes3,437 3,880 — 
ESPP918 1,945 295 
Restricted common stock263 1,602 5 
PRSUs322 — — 
Total12,612 44,551 6,585 
v3.24.0.1
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION (Tables)
 12 Months Ended
Dec. 31, 2023
Supplemental Cash Flow Elements [Abstract]  
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Changes in operating assets and liabilities affecting cash were as follows (in thousands):
Year Ended December 31,
202320222021
USDC$254,571 $(848,138)$(77,471)
Accounts and loans receivable80,375 (141,023)28,511 
Deposits in transit(115,391)28,952 (36,527)
Income taxes, net8,547 1,906 (62,145)
Other current and non-current assets28,033 19,237 (20,060)
Accounts payable954 18,612 27,330 
Lease liabilities(39,733)(10,223)(20,596)
Other current and non-current liabilities108,850 (100,771)302,396 
Net changes in operating assets and liabilities$326,206 $(1,031,448)$141,438 
Reconciliation of cash, cash equivalents, and restricted cash (in thousands):
Year Ended December 31,
202320222021
Cash and cash equivalents$5,139,351 $4,425,021 $7,123,478 
Restricted cash22,992 25,873 30,951 
Customer custodial cash4,393,086 4,978,752 10,526,233 
Total cash, cash equivalents, and restricted cash$9,555,429 $9,429,646 $17,680,662 
Supplemental schedule of non-cash investing and financing activities were as follows (in thousands):
Year Ended December 31,
202320222021
Crypto assets borrowed$450,663 $920,379 $1,134,876 
Crypto assets borrowed repaid with crypto assets559,191 1,432,688 609,600 
Crypto loans originated396,981 — — 
Crypto loans repaid469,763 — — 
Non-cash assets received as collateral255,383 26,874 — 
Non-cash assets received as collateral returned282,257 — — 
Non-cash assets pledged as collateral156,963 58,377 — 
Non-cash assets pledged as collateral returned163,460 — — 
Non-cash consideration paid for business combinations51,494 324,925 571,196 
Purchase of crypto assets and investments with non-cash consideration27,977 19,967 13,511 
Realized gain on crypto assets held as investments48,491 — — 
Disposal of crypto assets and investments for non-cash consideration42,551 617 — 
Changes in right-of-use assets and operating lease obligations17,530 3,059 27,286 
v3.24.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
USD ($)
segment
Dec. 31, 2022
USD ($)
Concentration Risk [Line Items]    
Safeguarding customer assets held, ratio 1  
USDC held $ 576,028 $ 861,149
Number of operating segments | segment 1  
Number of reportable segments | segment 1  
Allowance for credit loss against crypto asset loan receivables $ 0  
Minimum    
Concentration Risk [Line Items]    
Assets pledged as collateral, percentage of fair value 115.00%  
Minimum | Cumulative Effect, Period of Adoption, Adjustment [Member] | Pro Forma    
Concentration Risk [Line Items]    
Crypto assets held $ 720,000  
Maximum    
Concentration Risk [Line Items]    
Assets pledged as collateral, percentage of fair value 250.00%  
Maximum | Cumulative Effect, Period of Adoption, Adjustment [Member] | Pro Forma    
Concentration Risk [Line Items]    
Crypto assets held $ 760,000  
Convertible Senior Notes due 2026    
Concentration Risk [Line Items]    
Conversion ratio 0.0026994  
Accounts Receivable | Customer Concentration Risk | One Customer    
Concentration Risk [Line Items]    
Concentration risk, percentage (more than)   10.00%
Accounts Receivable | Customer Concentration Risk | Two Customers    
Concentration Risk [Line Items]    
Concentration risk, percentage (more than) 10.00%  
v3.24.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Useful life of Property, Plant and Equipment (Details)
Dec. 31, 2023
Furniture and fixtures | Minimum  
Property, Plant and Equipment [Line Items]  
Useful life 3 years
Furniture and fixtures | Maximum  
Property, Plant and Equipment [Line Items]  
Useful life 5 years
Computers and equipment | Minimum  
Property, Plant and Equipment [Line Items]  
Useful life 2 years
Computers and equipment | Maximum  
Property, Plant and Equipment [Line Items]  
Useful life 5 years
Capitalized software | Minimum  
Property, Plant and Equipment [Line Items]  
Useful life 1 year
Capitalized software | Maximum  
Property, Plant and Equipment [Line Items]  
Useful life 3 years
v3.24.0.1
RESTRUCTURING - Narrative (Details)
$ in Thousands
 1 Months Ended
Jan. 31, 2023
employees
Jun. 30, 2022
Employee
Dec. 31, 2023
USD ($)
Restructuring Cost and Reserve [Line Items]      
Number of positions eliminated, period percent 21.00% 18.00%  
Number of positions eliminated | Employee   1,100  
Expected restructuring cost remaining | $     $ 0
Restructuring Plan      
Restructuring Cost and Reserve [Line Items]      
Number of positions eliminated | employees 950    
v3.24.0.1
RESTRUCTURING - Schedule of Restructuring Expenses (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Restructuring Cost and Reserve [Line Items]      
Restructuring $ 142,594 $ 40,703 $ 0
Separation pay      
Restructuring Cost and Reserve [Line Items]      
Restructuring 56,733 38,741  
Stock-based compensation      
Restructuring Cost and Reserve [Line Items]      
Restructuring 84,042    
Other personnel costs      
Restructuring Cost and Reserve [Line Items]      
Restructuring $ 1,819 $ 1,962  
v3.24.0.1
RESTRUCTURING - Schedule of Restructuring Reserve and Changes in Balance (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Restructuring Reserve [Roll Forward]    
Expenses Incurred $ 60,447 $ 42,453
Payments (58,552) (40,703)
Adjustments (1,895) 1,750
Accrued Balance as of December 31, 2023 0 0
Separation pay    
Restructuring Reserve [Roll Forward]    
Expenses Incurred 57,745 39,259
Payments (56,733) (38,741)
Adjustments (1,012) 518
Accrued Balance as of December 31, 2023 0 0
Other personnel costs    
Restructuring Reserve [Roll Forward]    
Expenses Incurred 2,702 3,194
Payments (1,819) (1,962)
Adjustments (883) 1,232
Accrued Balance as of December 31, 2023 $ 0 $ 0
v3.24.0.1
ACQUISITIONS - Narrative (Details)
$ in Thousands
 12 Months Ended
Mar. 03, 2023
USD ($)
shares
Feb. 01, 2022
USD ($)
shares
Jan. 04, 2022
USD ($)
shares
Feb. 08, 2021
USD ($)
shares
Dec. 31, 2022
USD ($)
Dec. 31, 2021
USD ($)
businessCombination
tranche
shares
Dec. 31, 2023
USD ($)
Business Acquisition [Line Items]              
Goodwill         $ 1,073,906 $ 625,758 $ 1,139,670
One River Digital Asset Management, LLC              
Business Acquisition [Line Items]              
Cash subject to an indemnity holdback $ 6,000            
Number of shares to subject to indemnity holdback (in shares) | shares 119,991            
Holdback release term 18 months            
Total acquisition costs $ 2,600            
Goodwill $ 65,764            
Unbound Security, Inc.              
Business Acquisition [Line Items]              
Cash subject to an indemnity holdback     $ 21,700        
Holdback release term     18 months        
Total acquisition costs     $ 3,000        
Business combination, provisional information, initial accounting incomplete, adjustment, other noncurrent assets         4,100    
Goodwill     $ 222,732        
Unbound Security, Inc. | Class A common stock              
Business Acquisition [Line Items]              
Number of shares to subject to indemnity holdback (in shares) | shares     85,324        
FairXchange, Inc.              
Business Acquisition [Line Items]              
Cash subject to an indemnity holdback   $ 4,700          
Business combination, provisional information, initial accounting incomplete, adjustment, other noncurrent assets         300    
Goodwill   $ 231,685          
FairXchange, Inc. | Class A common stock              
Business Acquisition [Line Items]              
Number of shares to subject to indemnity holdback (in shares) | shares   83,035          
FairXchange, Inc. | Common Stock, Not Subject to Indemnity Holdback | Class A common stock              
Business Acquisition [Line Items]              
Number of shares included in purchase consideration (in shares) | shares   170,397          
FairXchange, Inc. | General and administrative              
Business Acquisition [Line Items]              
Total acquisition costs   $ 1,100          
Bison Trails Co.              
Business Acquisition [Line Items]              
Holdback release term       18 months      
Total acquisition costs       $ 3,700      
Gain on remeasurement       8,800      
Goodwill       $ 404,167      
Bison Trails Co. | Class A common stock              
Business Acquisition [Line Items]              
Number of shares to subject to indemnity holdback (in shares) | shares       496,434      
Other Acquisitions              
Business Acquisition [Line Items]              
Business combination, provisional information, initial accounting incomplete, adjustment, other noncurrent assets         $ 1,900    
Number of businesses acquired | businessCombination           5  
Number of tranches | tranche           2  
Goodwill           $ 144,379  
Goodwill, expected to be deductible           $ 77,100  
Other Acquisitions | Contingent Consideration Tranche One              
Business Acquisition [Line Items]              
Settlement term           1 year  
Other Acquisitions | Contingent Consideration Tranche Two              
Business Acquisition [Line Items]              
Settlement term           2 years  
Other Acquisitions | Class A common stock | Contingent Consideration Tranche One              
Business Acquisition [Line Items]              
Number of shares to be issued | shares           75,534  
Other Acquisitions | Class A common stock | Contingent Consideration Tranche Two              
Business Acquisition [Line Items]              
Number of shares to be issued | shares           75,534  
Other Acquisitions | Common Stock, Not Subject to Indemnity Holdback | Class A common stock              
Business Acquisition [Line Items]              
Number of shares included in purchase consideration (in shares) | shares           160,840  
Issuance term           6 months  
Other Acquisitions | Common Stock, Subject to indemnity Holdback | Class A common stock              
Business Acquisition [Line Items]              
Number of shares to subject to indemnity holdback (in shares) | shares           51,619  
Other Acquisitions | Common Stock, Subject to indemnity Holdback | Class A common stock | Minimum              
Business Acquisition [Line Items]              
Issuance term           15 months  
Other Acquisitions | Common Stock, Subject to indemnity Holdback | Class A common stock | Maximum              
Business Acquisition [Line Items]              
Issuance term           18 months  
Other Acquisitions | General and administrative              
Business Acquisition [Line Items]              
Total acquisition costs           $ 4,300  
Other Acquisitions | Technology and development              
Business Acquisition [Line Items]              
Total acquisition costs           $ 5,500  
v3.24.0.1
ACQUISITIONS - Schedule of ORDAM purchase consideration (Details) - One River Digital Asset Management, LLC
$ in Thousands
Mar. 03, 2023
USD ($)
Business Acquisition [Line Items]  
Cash $ 30,830
Cash payable 1,005
Previously-held interest on acquisition date 20,000
Class A common stock of the Company 44,995
Consideration transferred $ 96,830
v3.24.0.1
ACQUISITIONS - Schedule of ORDAM net assets acquired (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Mar. 03, 2023
Dec. 31, 2022
Dec. 31, 2021
Business Acquisition [Line Items]        
Goodwill $ 1,139,670   $ 1,073,906 $ 625,758
One River Digital Asset Management, LLC        
Business Acquisition [Line Items]        
Goodwill   $ 65,764    
Intangible assets, net   21,100    
Other assets and liabilities, net   9,966    
Net assets acquired   $ 96,830    
v3.24.0.1
ACQUISITIONS - Schedule of ORDAM finite-lived intangible assets acquired (Details) - One River Digital Asset Management, LLC
$ in Thousands
Mar. 03, 2023
USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]  
Intangible assets, net $ 21,100
Licenses  
Acquired Finite-Lived Intangible Assets [Line Items]  
Intangible assets, net 1,100
IPR&D  
Acquired Finite-Lived Intangible Assets [Line Items]  
Intangible assets, net 2,900
Customer relationships  
Acquired Finite-Lived Intangible Assets [Line Items]  
Intangible assets, net $ 17,100
Useful Life at Acquisition (in Years) 6 years
v3.24.0.1
ACQUISITIONS - Schedule of Unbound purchase consideration (Details) - Unbound Security, Inc.
$ in Thousands
Jan. 04, 2022
USD ($)
Business Acquisition [Line Items]  
Cash $ 151,424
Cash payable 126
Total purchase consideration 257,984
Class A common stock  
Business Acquisition [Line Items]  
Class A common stock of the Company 103,977
RSUs  
Business Acquisition [Line Items]  
Class A common stock of the Company $ 2,457
v3.24.0.1
ACQUISITIONS - Schedule of Unbound net assets acquired (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Jan. 04, 2022
Dec. 31, 2021
Business Acquisition [Line Items]        
Goodwill $ 1,139,670 $ 1,073,906   $ 625,758
Unbound Security, Inc.        
Business Acquisition [Line Items]        
Goodwill     $ 222,732  
Intangible assets, net     28,500  
Other assets and liabilities, net     6,752  
Net assets acquired     $ 257,984  
v3.24.0.1
ACQUISITIONS - Schedule of Unbound finite-lived intangible assets acquired (Details) - Unbound Security, Inc.
$ in Thousands
Jan. 04, 2022
USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]  
Intangible assets, net $ 28,500
Developed technology  
Acquired Finite-Lived Intangible Assets [Line Items]  
Intangible assets, net $ 15,700
Developed technology | Minimum  
Acquired Finite-Lived Intangible Assets [Line Items]  
Useful Life at Acquisition (in Years) 1 year
Developed technology | Maximum  
Acquired Finite-Lived Intangible Assets [Line Items]  
Useful Life at Acquisition (in Years) 5 years
IPR&D  
Acquired Finite-Lived Intangible Assets [Line Items]  
Intangible assets, net $ 2,500
Customer relationships  
Acquired Finite-Lived Intangible Assets [Line Items]  
Intangible assets, net $ 10,300
Useful Life at Acquisition (in Years) 2 years
v3.24.0.1
ACQUISITIONS - Schedule of FairXchange purchase consideration (Details) - FairXchange, Inc.
$ in Thousands
Feb. 01, 2022
USD ($)
Business Acquisition [Line Items]  
Cash $ 56,726
Cash payable 10,442
Total purchase consideration 275,090
Common Stock Issued | Class A common stock  
Business Acquisition [Line Items]  
Class A common stock of the Company 174,229
Common Stock to be Issued | Class A common stock  
Business Acquisition [Line Items]  
Class A common stock of the Company $ 33,693
v3.24.0.1
ACQUISITIONS - Schedule of FairXchange net assets acquired (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Feb. 01, 2022
Dec. 31, 2021
Business Acquisition [Line Items]        
Goodwill $ 1,139,670 $ 1,073,906   $ 625,758
FairXchange, Inc.        
Business Acquisition [Line Items]        
Goodwill     $ 231,685  
Intangible assets, net     41,000  
Other assets and liabilities, net     2,405  
Net assets acquired     $ 275,090  
v3.24.0.1
ACQUISITIONS - Schedule of FairXchange finite-lived intangible assets acquired (Details) - FairXchange, Inc.
$ in Thousands
Feb. 01, 2022
USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]  
Intangible assets, net $ 41,000
DCM License  
Acquired Finite-Lived Intangible Assets [Line Items]  
Intangible assets, net 26,900
Developed technology  
Acquired Finite-Lived Intangible Assets [Line Items]  
Intangible assets, net $ 10,700
Useful Life at Acquisition (in Years) 5 years
Trading relationships  
Acquired Finite-Lived Intangible Assets [Line Items]  
Intangible assets, net $ 3,400
Useful Life at Acquisition (in Years) 3 years
v3.24.0.1
ACQUISITIONS - Schedule of Bison Trails purchase consideration (Details) - Bison Trails Co.
$ in Thousands
Feb. 08, 2021
USD ($)
Business Acquisition [Line Items]  
Class A common stock of the Company $ 389,314
Previously-held interest on acquisition date 10,863
Cash 28,726
Replacement of Bison Trails options 28,365
Total purchase consideration $ 457,268
v3.24.0.1
ACQUISITIONS - Schedule of Bison Trails net assets acquired (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Feb. 08, 2021
Business Acquisition [Line Items]        
Goodwill $ 1,139,670 $ 1,073,906 $ 625,758  
Bison Trails Co.        
Business Acquisition [Line Items]        
Goodwill       $ 404,167
Intangible assets, net       39,100
Other assets and liabilities, net       14,001
Net assets acquired       $ 457,268
v3.24.0.1
ACQUISITIONS - Schedule of Bison Trails finite-lived intangible assets acquired (Details) - Bison Trails Co.
$ in Thousands
Feb. 08, 2021
USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]  
Intangible assets, net $ 39,100
Developed technology  
Acquired Finite-Lived Intangible Assets [Line Items]  
Intangible assets, net $ 36,000
Useful Life at Acquisition (in Years) 3 years
IPR&D  
Acquired Finite-Lived Intangible Assets [Line Items]  
Intangible assets, net $ 1,200
User base  
Acquired Finite-Lived Intangible Assets [Line Items]  
Intangible assets, net $ 1,900
Useful Life at Acquisition (in Years) 3 years
v3.24.0.1
ACQUISITIONS - Schedule of other acquisitions purchase consideration (Details) - Other Acquisitions
$ in Thousands
 12 Months Ended
Dec. 31, 2021
USD ($)
Business Acquisition [Line Items]  
Total purchase consideration $ 211,000
Cash 62,425
Cash payable 5,918
Contingent consideration arrangement 15,752
Consideration transferred 211,004
Common Stock Issued  
Business Acquisition [Line Items]  
Class A common stock of the Company 65,717
Common Stock to be Issued  
Business Acquisition [Line Items]  
Class A common stock of the Company 58,173
RSUs  
Business Acquisition [Line Items]  
Class A common stock of the Company $ 3,019
v3.24.0.1
ACQUISITIONS - Schedule of other acquisitions net assets acquired (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Business Acquisition [Line Items]      
Goodwill $ 1,139,670 $ 1,073,906 $ 625,758
Other Acquisitions      
Business Acquisition [Line Items]      
Goodwill     144,379
Intangible assets, net     62,100
Other assets and liabilities, net     4,525
Net assets acquired     $ 211,004
v3.24.0.1
ACQUISITIONS - Schedule of other acquisitions finite-lived intangible assets acquired (Details) - Other Acquisitions
$ in Thousands
 12 Months Ended
Dec. 31, 2021
USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]  
Intangible assets, net $ 62,100
Developed technology  
Acquired Finite-Lived Intangible Assets [Line Items]  
Intangible assets, net $ 45,900
Useful Life at Acquisition (in Years) 2 years 6 months
User base  
Acquired Finite-Lived Intangible Assets [Line Items]  
Intangible assets, net $ 1,000
Useful Life at Acquisition (in Years) 2 years 6 months
IPR&D  
Acquired Finite-Lived Intangible Assets [Line Items]  
Intangible assets, net $ 2,300
Customer relationships  
Acquired Finite-Lived Intangible Assets [Line Items]  
Intangible assets, net $ 12,900
Useful Life at Acquisition (in Years) 4 years 3 months 18 days
v3.24.0.1
REVENUE - Schedule of revenue disaggregated by source (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Disaggregation of Revenue [Line Items]      
Interest income $ 173,914 $ 81,246 $ 15,953
Total revenue 3,108,383 3,194,208 7,839,444
Net revenue      
Disaggregation of Revenue [Line Items]      
Total revenue 2,926,540 3,148,815 7,354,753
Total transaction revenue      
Disaggregation of Revenue [Line Items]      
Revenue 1,519,654 2,356,244 6,837,266
Consumer, net      
Disaggregation of Revenue [Line Items]      
Revenue 1,429,490 2,236,900 6,490,992
Institutional, net      
Disaggregation of Revenue [Line Items]      
Revenue 90,164 119,344 346,274
Subscription and services revenue      
Disaggregation of Revenue [Line Items]      
Revenue 1,406,886 792,571 517,487
Stablecoin revenue      
Disaggregation of Revenue [Line Items]      
Revenue 694,247 245,710 9,882
Blockchain rewards      
Disaggregation of Revenue [Line Items]      
Revenue 330,885 275,507 223,055
Custodial fee revenue      
Disaggregation of Revenue [Line Items]      
Revenue 69,501 79,847 136,293
Other subscription and services revenue      
Disaggregation of Revenue [Line Items]      
Revenue 138,339 110,261 132,304
Other revenue      
Disaggregation of Revenue [Line Items]      
Total revenue 181,843 45,393 484,691
Corporate interest and other income      
Disaggregation of Revenue [Line Items]      
Corporate interest and other income 181,827 44,768 2,141
Crypto asset sales revenue      
Disaggregation of Revenue [Line Items]      
Total revenue $ 16 $ 625 $ 482,550
v3.24.0.1
REVENUE - Schedule of revenue disaggregated by geographic area (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Disaggregation of Revenue [Line Items]      
Total revenue $ 3,108,383 $ 3,194,208 $ 7,839,444
United States      
Disaggregation of Revenue [Line Items]      
Total revenue 2,725,620 2,684,425 6,339,270
Rest of the World      
Disaggregation of Revenue [Line Items]      
Total revenue $ 382,763 $ 509,783 $ 1,500,174
v3.24.0.1
ACCOUNTS AND LOANS RECEIVABLE, NET OF ALLOWANCE - Schedule of accounts and loans receivable (Details) - USD ($)
Dec. 31, 2023
Dec. 31, 2022
Accounts receivable    
Stablecoin revenue receivable $ 57,885,000 $ 179,996,000
Customer fee revenue receivable 23,603,000 23,014,000
Interest and other receivables 109,361,000 28,837,000
Gross accounts receivable 190,849,000 231,847,000
Allowance for doubtful accounts (22,559,000) (11,500,000)
Net accounts receivable 168,290,000 220,347,000
Loans receivable(2)    
Fiat loans receivable 171,196,000 98,203,000
Crypto asset loan receivables past due 22,229,000 85,826,000
Total loans receivable 193,425,000 184,029,000
Accounts and loans receivable, net of allowance 361,715,000 404,376,000
USDC receivables 205,600,000 2,800,000
Financial Asset, Past Due    
Loans receivable(2)    
Fiat loans receivable $ 0 $ 0
v3.24.0.1
LEASES - Narrative (Details) - USD ($)
$ in Millions
Dec. 31, 2023
Feb. 28, 2023
Lessee, Lease, Description [Line Items]    
Cancellation fee   $ 25.0
Minimum committed spend after cancellation   $ 2.0
Minimum    
Lessee, Lease, Description [Line Items]    
Remaining lease term 1 year  
Maximum    
Lessee, Lease, Description [Line Items]    
Remaining lease term 3 years  
v3.24.0.1
LEASES - Lease Cost (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Leases [Abstract]      
Operating lease cost $ 40,429 $ 36,724 $ 34,074
Short-term lease cost 4,304 707 374
Total lease cost $ 44,733 $ 37,431 $ 34,448
v3.24.0.1
LEASES - Other Information Related to Leases (Details)
Dec. 31, 2023
Dec. 31, 2022
Leases [Abstract]    
Weighted-average remaining lease term (in years) 1 year 6 months 1 year 2 months 12 days
Weighted-average discount rate 4.05% 3.01%
v3.24.0.1
LEASES - Lease Maturity (Details)
$ in Thousands
Dec. 31, 2023
USD ($)
Leases [Abstract]  
2024 $ 11,235
2025 3,124
2026 792
Total lease payments 15,151
Less imputed interest (428)
Total $ 14,723
v3.24.0.1
PROPERTY AND EQUIPMENT, NET - Schedule of Property and Equipment (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Property, Plant and Equipment [Line Items]    
Total property and equipment, gross $ 313,277 $ 256,868
Accumulated depreciation and amortization (120,727) (85,015)
Property and equipment, net 192,550 171,853
Capitalized software    
Property, Plant and Equipment [Line Items]    
Total property and equipment, gross 293,467 198,537
Leasehold improvements    
Property, Plant and Equipment [Line Items]    
Total property and equipment, gross 17,131 45,262
Furniture and fixtures    
Property, Plant and Equipment [Line Items]    
Total property and equipment, gross 125 7,217
Computers and equipment    
Property, Plant and Equipment [Line Items]    
Total property and equipment, gross $ 2,554 $ 5,852
v3.24.0.1
PROPERTY AND EQUIPMENT, NET - Narrative (Details) - USD ($)
$ in Millions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Property, Plant and Equipment [Abstract]      
Depreciation $ 70.0 $ 48.0 $ 18.4
Computer software additions 112.0 178.6 22.2
Impairment charges on property and equipment $ 18.3 $ 21.8 $ 0.0
v3.24.0.1
PROPERTY AND EQUIPMENT, NET - Long-lived Assets by Geographic Areas (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Property, Plant and Equipment [Line Items]    
Total long-lived assets $ 205,287 $ 241,210
United States    
Property, Plant and Equipment [Line Items]    
Total long-lived assets 198,810 229,737
Non-US    
Property, Plant and Equipment [Line Items]    
Total long-lived assets $ 6,477 $ 11,473
v3.24.0.1
GOODWILL, INTANGIBLE ASSETS, NET AND CRYPTO ASSETS HELD - Schedule of goodwill (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Goodwill [Roll Forward]    
Balance, beginning of period $ 1,073,906 $ 625,758
Additions due to business combinations 65,764 454,417
Measurement period adjustments 0 (6,269)
Balance, end of period $ 1,139,670 1,073,906
Unbound Security, Inc.    
Goodwill [Roll Forward]    
Measurement period adjustments   (4,100)
FairXchange, Inc.    
Goodwill [Roll Forward]    
Measurement period adjustments   (300)
Other Acquisitions    
Goodwill [Roll Forward]    
Balance, beginning of period   144,379
Measurement period adjustments   $ (1,900)
v3.24.0.1
GOODWILL, INTANGIBLE ASSETS, NET AND CRYPTO ASSETS HELD - Narrative (Details) - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]      
Accumulated impairment $ 0 $ 0  
Amortization expense of intangible assets 69,600,000 106,100,000 $ 45,300,000
Asset impairment expense $ 0 $ 0 $ 0
v3.24.0.1
GOODWILL, INTANGIBLE ASSETS, NET AND CRYPTO ASSETS HELD - Schedule of intangible assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]    
Accumulated Amortization $ (236,512) $ (176,580)
Total expected future amortization expense 58,172  
Total intangible assets, gross carrying amount 322,934 312,009
Total accumulated amortization (236,512) (176,580)
Intangible Assets, Net 86,422 135,429
DCM License    
Finite-Lived Intangible Assets [Line Items]    
Indefinite-lived intangible assets 28,000 26,900
Other    
Finite-Lived Intangible Assets [Line Items]    
Indefinite-lived intangible assets 250 250
Developed technology    
Finite-Lived Intangible Assets [Line Items]    
Intangible assets, gross carrying amount 124,291 126,692
Accumulated Amortization (105,139) (81,172)
Total expected future amortization expense $ 19,152 $ 45,520
Life 2 years 6 months 2 years 3 months 18 days
Total accumulated amortization $ (105,139) $ (81,172)
Customer relationships    
Finite-Lived Intangible Assets [Line Items]    
Intangible assets, gross carrying amount 103,791 86,691
Accumulated Amortization (66,279) (45,717)
Total expected future amortization expense $ 37,512 $ 40,974
Life 3 years 1 month 6 days 2 years 7 months 6 days
Total accumulated amortization $ (66,279) $ (45,717)
Assembled workforce    
Finite-Lived Intangible Assets [Line Items]    
Intangible assets, gross carrying amount 60,800 60,800
Accumulated Amortization (60,800) (44,857)
Total expected future amortization expense 0 $ 15,943
Life   4 months 24 days
Total accumulated amortization (60,800) $ (44,857)
Other    
Finite-Lived Intangible Assets [Line Items]    
Intangible assets, gross carrying amount 5,802 10,676
Accumulated Amortization (4,294) (4,834)
Total expected future amortization expense $ 1,508 $ 5,842
Life 1 year 1 year 8 months 12 days
Total accumulated amortization $ (4,294) $ (4,834)
v3.24.0.1
GOODWILL, INTANGIBLE ASSETS, NET AND CRYPTO ASSETS HELD - Schedule of future amortization expense (Details)
$ in Thousands
Dec. 31, 2023
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]  
2024 $ 25,649
2025 17,400
2026 8,782
2027 3,026
2028 2,855
Thereafter 460
Total expected future amortization expense $ 58,172
v3.24.0.1
GOODWILL, INTANGIBLE ASSETS, NET AND CRYPTO ASSETS HELD - Crypto assets held (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Recorded at impaired cost    
Indefinite-lived Intangible Assets [Line Items]    
Indefinite-lived intangible assets $ 404,713 $ 222,828
Recorded at fair value    
Indefinite-lived Intangible Assets [Line Items]    
Indefinite-lived intangible assets 45,212 201,565
Total crypto assets held    
Indefinite-lived Intangible Assets [Line Items]    
Indefinite-lived intangible assets 449,925 424,393
Crypto assets held as investments | Recorded at impaired cost    
Indefinite-lived Intangible Assets [Line Items]    
Indefinite-lived intangible assets 330,610 155,251
Crypto assets held as investments | Recorded at fair value    
Indefinite-lived Intangible Assets [Line Items]    
Indefinite-lived intangible assets 0 133,416
Crypto assets held for operations purposes | Recorded at impaired cost    
Indefinite-lived Intangible Assets [Line Items]    
Indefinite-lived intangible assets 74,103 67,577
Crypto assets borrowed | Recorded at fair value    
Indefinite-lived Intangible Assets [Line Items]    
Indefinite-lived intangible assets $ 45,212 $ 68,149
v3.24.0.1
GOODWILL, INTANGIBLE ASSETS, NET AND CRYPTO ASSETS HELD - Schedule of Crypto Asset Impairment (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Goodwill and Intangible Assets Disclosure [Abstract]      
Crypto asset impairment expense $ 96,783 $ 757,257 $ 329,152
Crypto asset sales and disposals (131,458) (35,046) (175,992)
Crypto asset impairment, net $ (34,675) $ 722,211 $ 153,160
v3.24.0.1
CUSTOMER ASSETS AND LIABILITIES - Schedule of Customers' Cash and Crypto Positions (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]    
Customer custodial funds $ 4,570,845 $ 5,041,119
Safeguarding customer crypto assets 192,583,060 75,413,188
Total customer assets 197,153,905 80,454,307
Customer custodial cash liabilities 4,570,845 4,829,587
Safeguarding customer crypto liabilities 192,583,060 75,413,188
Total customer liabilities $ 197,153,905 $ 80,242,775
v3.24.0.1
CUSTOMER ASSETS AND LIABILITIES - Narrative (Details) - USD ($)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]    
Losses incurred in connection with safeguarding customer crypto assets $ 0 $ 0
v3.24.0.1
CUSTOMER ASSETS AND LIABILITIES - Fair Value of Customer Crypto Assets (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Cryptocurrency, by Type [Line Items]    
Safeguarding customer crypto assets $ 192,583,060 $ 75,413,188
Percentage of total 100.00% 100.00%
Safeguarding And Customer Crypto Assets    
Cryptocurrency, by Type [Line Items]    
Safeguarding customer crypto assets $ 0 $ 0
Bitcoin    
Cryptocurrency, by Type [Line Items]    
Safeguarding customer crypto assets $ 89,864,637 $ 32,468,926
Percentage of total 47.00% 43.00%
Ethereum    
Cryptocurrency, by Type [Line Items]    
Safeguarding customer crypto assets $ 40,200,059 $ 20,858,121
Percentage of total 21.00% 28.00%
Solana    
Cryptocurrency, by Type [Line Items]    
Safeguarding customer crypto assets $ 12,906,278 $ 1,233,451
Percentage of total 6.00% 1.00%
Other crypto assets    
Cryptocurrency, by Type [Line Items]    
Safeguarding customer crypto assets $ 49,612,086 $ 20,852,690
Percentage of total 26.00% 28.00%
Ethereum    
Cryptocurrency, by Type [Line Items]    
Safeguarding customer crypto assets $ 10,100,000 $ 3,000,000
No Assets | Safeguarding And Customer Crypto Assets | Asset Concentration Risk    
Cryptocurrency, by Type [Line Items]    
Concentration risk, percentage (more than) 5.00% 5.00%
v3.24.0.1
PREPAID EXPENSES AND OTHER CURRENT AND NON-CURRENT ASSETS - Schedule of prepaid expenses and other current and non-current assets (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Prepaid expenses and other current assets    
Prepaid expenses $ 79,552 $ 98,204
Fair Value 53,071 100,007
Other 16,191 18,837
Total prepaid expenses and other current assets 148,814 217,048
Other non-current assets    
Strategic investments(2) 343,045 326,683
Deposits 16,250 10,989
Other 3,590 17,257
Total other non-current assets 362,885 354,929
Asset Pledged as Collateral with Right    
Prepaid expenses and other current assets    
Fair Value $ 51,900 $ 58,400
v3.24.0.1
PREPAID EXPENSES AND OTHER CURRENT AND NON-CURRENT ASSETS - Schedule of Assets Posted as Collateral (Details)
$ in Thousands
Dec. 31, 2023
USD ($)
Unit
Dec. 31, 2022
USD ($)
Unit
Schedule of Equity Method Investments [Line Items]    
Fair Value $ 206,982,953 $ 89,724,873
USDC    
Schedule of Equity Method Investments [Line Items]    
Units | Unit 51,879,705 47,633,897
Bitcoin    
Schedule of Equity Method Investments [Line Items]    
Units | Unit 0 650
Asset Pledged as Collateral    
Schedule of Equity Method Investments [Line Items]    
Fair Value $ 53,071 $ 100,007
Asset Pledged as Collateral | USDC    
Schedule of Equity Method Investments [Line Items]    
Fair Value 51,880 47,634
Asset Pledged as Collateral | Bitcoin    
Schedule of Equity Method Investments [Line Items]    
Fair Value 0 10,743
Asset Pledged as Collateral | Fiat    
Schedule of Equity Method Investments [Line Items]    
Fair Value $ 1,191 $ 41,630
v3.24.0.1
PREPAID EXPENSES AND OTHER CURRENT AND NON-CURRENT ASSETS - Schedule of other investments accounted for under the measurement alternative (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Equity Securities without Readily Determinable Fair Value [Roll Forward]    
Carrying amount, beginning of period $ 315,285 $ 352,431
Net additions 60,979 62,975
Upward adjustments 62 900
Previously held interest in ORDAM (20,000) 0
Impairments and downward adjustments (25,980) (101,021)
Carrying amount, end of period 330,346 315,285
Strategic investments that are not accounted for under the measurement alternative $ 12,700 $ 11,400
v3.24.0.1
PREPAID EXPENSES AND OTHER CURRENT AND NON-CURRENT ASSETS - Narrative (Details) - USD ($)
$ in Millions
Aug. 18, 2023
Dec. 31, 2023
Dec. 31, 2022
Aug. 31, 2019
Schedule of Equity Method Investments [Line Items]        
Upward adjustments due to remeasurement of investments   $ 4.9 $ 4.9  
Impairment loss and downward adjustments   $ 127.0 $ 102.0  
Centre Consortium LLC        
Schedule of Equity Method Investments [Line Items]        
Ownership percentage 50.00%     50.00%
Share value received from sale of equity method investment $ 51.1      
Gain on disposal of equity method investment $ 49.9      
Circle Internet Financial Limitied        
Schedule of Equity Method Investments [Line Items]        
Percent of equity received in exchange for ownership interest 3.50%      
v3.24.0.1
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Schedule of accounts payable and accrued expenses (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Payables and Accruals [Abstract]    
Accrued payroll and payroll related $ 224,237 $ 90,257
Other accrued expenses 89,254 75,532
Income taxes payable 17,366 5,534
Obligation to return collateral 1,063 26,874
Short-term borrowings 0 20,519
Other payables 115,130 112,520
Total accrued expenses and other current liabilities $ 447,050 $ 331,236
v3.24.0.1
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES - Narrative (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Payables and Accruals [Abstract]    
Debt instrument, stated percentage   4.49%
Short-term borrowings $ 0 $ 20,519
v3.24.0.1
COLLATERAL - Schedule of Collateral Posted and Received (Details)
$ in Thousands
Dec. 31, 2023
USD ($)
Unit
Dec. 31, 2022
USD ($)
Unit
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Fair Value $ 206,982,953 $ 89,724,873
Obligation to return collateral 1,063 26,874
Asset Pledged as Collateral    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Fair Value $ 53,071 $ 100,007
USDC    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Units | Unit 51,879,705 47,633,897
Obligation to return collateral, units | Unit 0 26,873,830
Obligation to return collateral $ 0 $ 26,874
Securities loaned percent 100.00% 100.00%
USDC | Asset Pledged as Collateral    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Fair Value $ 51,880 $ 47,634
Bitcoin    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Units | Unit 0 650
Securities loaned percent   110.00%
Bitcoin | Asset Pledged as Collateral    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Fair Value $ 0 $ 10,743
Fiat    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Obligation to return collateral 1,063 0
Fiat | Asset Pledged as Collateral    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Fair Value $ 1,191 $ 41,630
v3.24.0.1
COLLATERAL - Narrative (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Fair Value $ 206,982,953 $ 89,724,873
Derivative notional amounts and derivative liabilities 63,000 151,500
Collateral received 712,600 136,000
Asset Pledged as Collateral without Right    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Fair Value $ 29,600 $ 0
v3.24.0.1
INDEBTEDNESS - Schedule of Long Term Debt (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Debt Instrument [Line Items]    
Debt instrument, stated percentage   4.49%
Principal Amount $ 3,010,470 $ 3,437,500
Unamortized Debt Discount and Issuance Costs (30,513) (44,052)
Net Carrying Amount $ 2,979,957 $ 3,393,448
Convertible notes | 2026 Convertible Notes    
Debt Instrument [Line Items]    
Debt instrument, stated percentage 0.50% 0.50%
Effective Interest Rate 0.98% 0.98%
Principal Amount $ 1,273,013 $ 1,437,500
Unamortized Debt Discount and Issuance Costs (15,378) (23,339)
Net Carrying Amount $ 1,257,635 $ 1,414,161
Senior Notes | 2028 Senior Notes    
Debt Instrument [Line Items]    
Debt instrument, stated percentage 3.375% 3.38%
Effective Interest Rate 3.57% 3.57%
Principal Amount $ 1,000,000 $ 1,000,000
Unamortized Debt Discount and Issuance Costs (8,218) (10,022)
Net Carrying Amount $ 991,782 $ 989,978
Senior Notes | 2031 Senior Notes    
Debt Instrument [Line Items]    
Debt instrument, stated percentage 3.625% 3.63%
Effective Interest Rate 3.77% 3.77%
Principal Amount $ 737,457 $ 1,000,000
Unamortized Debt Discount and Issuance Costs (6,917) (10,691)
Net Carrying Amount $ 730,540 $ 989,309
v3.24.0.1
INDEBTEDNESS - Narrative (Details) - USD ($)
$ / shares in Units, $ in Thousands
 1 Months Ended 2 Months Ended 12 Months Ended
May 31, 2021
May 18, 2021
Nov. 30, 2023
Jun. 30, 2023
Sep. 30, 2021
Sep. 30, 2023
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Debt Instrument [Line Items]                  
Debt instrument, stated percentage               4.49%  
Issuance of convertible senior notes, net             $ 0 $ 0 $ 1,403,753
Gain on extinguishment of debt             117,383 0 0
Purchase of capped calls   $ 90,100         $ 0 $ 0 $ 90,131
Option strike price (in dollars per share)   $ 370.45              
Cap price per share (in dollars per share)   $ 478.00              
Convertible Senior Notes due 2026 | Convertible notes                  
Debt Instrument [Line Items]                  
Face amount of debt $ 1,400,000                
Debt instrument, stated percentage             0.50% 0.50%  
Issuance of convertible senior notes, net 1,400,000                
Repayments of debt     $ 80,900 $ 45,500          
Repurchased face amount     100,000 64,500          
Debt repurchase amount     98,800 63,600          
Legal fees       300          
Original issue discount $ 14,400   $ 1,200 $ 900          
Gain on extinguishment of debt             $ 35,800    
Original issue discount 1.00%                
Conversion price (in dollars per share) $ 370.45                
Repurchase price, percentage 100.00%                
Debt issuance costs $ 19,400                
2028 Senior Notes | Senior Notes                  
Debt Instrument [Line Items]                  
Face amount of debt         $ 1,000,000        
Debt instrument, stated percentage             3.375% 3.38%  
Repurchase price, percentage         103.375%        
2031 Senior Notes | Senior Notes                  
Debt Instrument [Line Items]                  
Face amount of debt         $ 1,000,000        
Debt instrument, stated percentage             3.625% 3.63%  
Repurchased face amount           $ 262,500      
Debt repurchase amount           259,900      
Legal fees           1,100      
Original issue discount           2,600      
Gain on extinguishment of debt             $ 81,600    
Repurchase price, percentage         103.625%        
Payment for debt extinguishment           $ 177,200      
2028 and 2031 Senior Notes | Senior Notes                  
Debt Instrument [Line Items]                  
Payments of debt issuance costs         $ 24,000        
Percentage of principal to be redeemed         40.00%        
Covenant, change of control, redemption price, percentage         101.00%        
v3.24.0.1
INDEBTEDNESS - Schedule of Interest Expense (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Debt Disclosure [Abstract]      
Coupon interest $ 73,861 $ 77,235 $ 24,129
Amortization of debt discount and issuance costs 8,830 8,653 5,031
Total $ 82,691 $ 85,888 $ 29,160
v3.24.0.1
DERIVATIVES - Description of derivatives and related hedge accounting designation (Details)
Dec. 31, 2023
Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]    
Derivative Asset, Statement of Financial Position [Extensible Enumeration] Accounts and loans receivable, net of allowance, Prepaid expenses and other current assets Accounts and loans receivable, net of allowance, Prepaid expenses and other current assets
Derivative Liability, Statement of Financial Position [Extensible Enumeration] Accrued expenses and other current liabilities, Crypto asset borrowings Accrued expenses and other current liabilities, Crypto asset borrowings
v3.24.0.1
DERIVATIVES - Schedule of notional amount of derivative contracts outstanding (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Crypto asset futures | Designated as fair value hedging instruments    
Derivative [Line Items]    
Notional amount of derivative contracts outstanding in native units $ 0 $ 136,230
Crypto asset futures | Not designated as hedging instruments    
Derivative [Line Items]    
Notional amount of derivative contracts outstanding in native units 0 12,462
Accounts receivable denominated in crypto assets | Not designated as hedging instruments    
Derivative [Line Items]    
Notional amount of derivative contracts outstanding in native units 16,335 101,598
Crypto assets pledged as collateral | Not designated as hedging instruments    
Derivative [Line Items]    
Notional amount of derivative contracts outstanding in native units 0 13,103
Other payables denominated in crypto assets | Not designated as hedging instruments    
Derivative [Line Items]    
Notional amount of derivative contracts outstanding in native units 20,092 4,267
Crypto asset borrowings | Designated as fair value hedging instruments    
Derivative [Line Items]    
Notional amount of derivative contracts outstanding in native units 31,666 80,999
Crypto asset borrowings | Not designated as hedging instruments    
Derivative [Line Items]    
Notional amount of derivative contracts outstanding in native units $ 12,503 $ 70,462
v3.24.0.1
DERIVATIVES - Schedule of derivative assets and liabilities (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets $ 30,577 $ 3,838
Gross Derivative Liabilities 21,913 19,583
Borrowing fees paid in crypto assets $ 4,800 $ 6,700
Minimum    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Crypto asset, fee on borrowings 1.50% 0.00%
Maximum    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Crypto asset, fee on borrowings 10.30% 9.00%
Accounts receivable denominated in crypto assets    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets $ 28,065 $ 302
Gross Derivative Liabilities 0 9,146
Crypto assets pledged as collateral    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets   0
Gross Derivative Liabilities   2,360
Other payables denominated in crypto assets    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets 2,511 1,270
Gross Derivative Liabilities 3,101 5,767
Crypto asset borrowings    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets 1 2,266
Gross Derivative Liabilities 18,812 2,310
Not designated as hedging instruments    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets 30,602 3,838
Gross Derivative Liabilities 8,391 17,930
Not designated as hedging instruments | Accounts receivable denominated in crypto assets    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets 28,065 302
Gross Derivative Liabilities 0 9,146
Not designated as hedging instruments | Crypto assets pledged as collateral    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets   0
Gross Derivative Liabilities   2,360
Not designated as hedging instruments | Other payables denominated in crypto assets    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets 2,511 1,270
Gross Derivative Liabilities 3,101 5,767
Not designated as hedging instruments | Crypto asset borrowings    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets 26 2,266
Gross Derivative Liabilities 5,290 657
Designated as fair value hedging instruments    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets (25) 0
Gross Derivative Liabilities 13,522 1,653
Designated as fair value hedging instruments | Accounts receivable denominated in crypto assets    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets 0 0
Gross Derivative Liabilities 0 0
Designated as fair value hedging instruments | Crypto assets pledged as collateral    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets   0
Gross Derivative Liabilities   0
Designated as fair value hedging instruments | Other payables denominated in crypto assets    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets 0 0
Gross Derivative Liabilities 0 0
Designated as fair value hedging instruments | Crypto asset borrowings    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets (25) 0
Gross Derivative Liabilities $ 13,522 $ 1,653
v3.24.0.1
DERIVATIVES - Schedule of gains (losses) recorded in income (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Not designated as hedging instruments    
Derivative [Line Items]    
Derivatives $ (125,569) $ 304,667
Hedged Items 163,846 (372,522)
Income Statement Impact 38,277 (67,855)
Crypto asset futures | Designated as fair value hedging instruments    
Derivative [Line Items]    
Derivatives (40,191) 13,571
Hedged Items 46,453 (12,994)
Income Statement Impact 6,262 577
Crypto asset futures | Not designated as hedging instruments    
Derivative [Line Items]    
Derivatives (1,424) 1,735
Hedged Items 0 0
Income Statement Impact (1,424) 1,735
Crypto asset borrowings | Designated as fair value hedging instruments    
Derivative [Line Items]    
Derivatives (75,249) 359,240
Hedged Items 117,393 (359,528)
Income Statement Impact 42,144 (288)
Crypto asset borrowings | Not designated as hedging instruments    
Derivative [Line Items]    
Derivatives (47,160) 11,242
Hedged Items 0 0
Income Statement Impact (47,160) 11,242
Accounts receivable denominated in crypto assets | Not designated as hedging instruments    
Derivative [Line Items]    
Derivatives 28,602 (24,969)
Hedged Items 0 0
Income Statement Impact 28,602 (24,969)
Foreign currency forward contracts | Not designated as hedging instruments    
Derivative [Line Items]    
Derivatives 0 (59,063)
Hedged Items 0 0
Income Statement Impact 0 (59,063)
Crypto assets pledged as collateral | Not designated as hedging instruments    
Derivative [Line Items]    
Derivatives 0 (2,360)
Hedged Items 0 0
Income Statement Impact 0 (2,360)
Other payables denominated in crypto assets | Not designated as hedging instruments    
Derivative [Line Items]    
Derivatives 5,014 5,271
Hedged Items 0 0
Income Statement Impact 5,014 5,271
Other | Not designated as hedging instruments    
Derivative [Line Items]    
Derivatives 4,839 0
Hedged Items 0 0
Income Statement Impact $ 4,839 $ 0
v3.24.0.1
DERIVATIVES - Schedule of cumulative fair value hedge basis adjustments (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Derivative Instruments and Hedging Activities Disclosure [Abstract]    
Carrying amount of the hedged items, Crypto assets held $ 45,212 $ 201,565
Cumulative amount of fair value hedging adjustments included in the carrying amount of hedged items, active hedging relationships, Crypto assets held (3,946) (562)
Cumulative amount of fair value hedging adjustments included in the carrying amount of hedged items, discontinued hedging relationships, Crypto assets held 0 670
Cumulative amount of fair value hedging adjustments included in the carrying amount of hedged items, total, Crypto assets held $ (3,946) $ 108
Hedged Asset, Statement of Financial Position [Extensible Enumeration] Crypto assets held Crypto assets held
v3.24.0.1
FAIR VALUE MEASUREMENTS - Schedule of fair value of assets and liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash and cash equivalents $ 5,139,351 $ 4,425,021 $ 7,123,478
Derivative assets 30,577 3,838  
Safeguarding customer crypto assets 192,583,060 75,413,188  
Derivative liabilities 21,913 19,583  
Safeguarding customer crypto liabilities 192,583,060 75,413,188  
Customer custodial funds excluded from fair value assets 1,300,000 3,000,000  
Crypto assets held at cost excluded from fair value assets 404,700 222,800  
Embedded Derivative Financial Instruments, Crypto Asset Borrowings      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Derivative assets 1 2,266  
Derivative liabilities 18,812 2,310  
Held in Deposit at Financial Institutions      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash and cash equivalents 1,400,000 2,000,000  
Held in Deposit at Venues      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash and cash equivalents 88,800 143,200  
Level 1 | Fair Value, Recurring      
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]      
Cash and cash equivalents 3,682,917 2,250,065  
Customer custodial funds 3,301,029 2,088,132  
Crypto assets held 45,212 201,565  
Derivative assets 0 0  
Crypto asset loans receivable 0 0  
Safeguarding customer crypto assets 0 0  
Total assets 7,029,158 4,539,762  
Derivative liabilities 0 0  
Safeguarding customer crypto liabilities 0 0  
Contingent consideration arrangement 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 0 0  
Derivative assets 30,577 3,838  
Crypto asset loans receivable 22,229 85,826  
Safeguarding customer crypto assets 192,583,060 75,413,188  
Total assets 192,635,866 75,502,852  
Derivative liabilities 21,913 19,583  
Safeguarding customer crypto liabilities 192,583,060 75,413,188  
Contingent consideration arrangement 0 0  
Total liabilities 192,604,973 75,432,771  
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 0 0  
Crypto asset loans receivable 0 0  
Safeguarding customer crypto assets 0 0  
Total assets 0 0  
Derivative liabilities 0 0  
Safeguarding customer crypto liabilities 0 0  
Contingent consideration arrangement 0 1,855  
Total liabilities $ 0 $ 1,855  
v3.24.0.1
FAIR VALUE MEASUREMENTS - Reconciliation of contingent consideration arrangement (Details) - Contingent Consideration - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]    
Balance, beginning of period $ 1,855 $ 14,828
Change in fair value 436 (8,312)
Settlement (2,291) (4,661)
Balance, end of period $ 0 $ 1,855
v3.24.0.1
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($)
$ in Billions
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Class A common stock    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Issuance of equity instruments as consideration for business combination (in shares) 28,422 57,640
Convertible Senior Notes due 2026 | Level 2 | Convertible notes    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value of notes $ 1.2  
2028 and 2031 Senior Notes | Level 2 | Senior Notes    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value of notes $ 1.4  
v3.24.0.1
CAPITAL STOCK (Details)
Apr. 01, 2021
vote
$ / shares
shares
Dec. 31, 2023
$ / shares
shares
Dec. 31, 2022
$ / shares
shares
Class of Stock [Line Items]      
Convertible preferred shares authorized (in shares)   500,000,000 500,000,000
Convertible preferred stock par value (in dollars per share) | $ / shares   $ 0.00001 $ 0.00001
Undesignated preferred stock      
Class of Stock [Line Items]      
Convertible preferred shares authorized (in shares) 500,000,000    
Convertible preferred stock par value (in dollars per share) | $ / shares $ 0.00001    
Class A common stock      
Class of Stock [Line Items]      
Common stock, authorized (in shares) 10,000,000,000 10,000,000,000 10,000,000,000
Common stock, voting rights per share | vote 1    
Class B common stock      
Class of Stock [Line Items]      
Common stock, authorized (in shares) 500,000,000 500,000,000 500,000,000
Common stock, voting rights per share | vote 20    
Common stock, conversion ratio 1    
Undesignated common stock      
Class of Stock [Line Items]      
Common stock, authorized (in shares) 500,000,000    
v3.24.0.1
STOCK-BASED COMPENSATION - Narrative (Details)
$ / shares in Units, $ in Thousands
 1 Months Ended 12 Months Ended 36 Months Ended
Apr. 20, 2023
USD ($)
shares
Jul. 08, 2021
shares
Aug. 11, 2020
USD ($)
$ / shares
shares
Dec. 31, 2022
USD ($)
employees
shares
Feb. 28, 2021
Dec. 31, 2023
USD ($)
equity_plan
$ / shares
shares
Dec. 31, 2022
USD ($)
$ / shares
shares
Dec. 31, 2021
USD ($)
$ / shares
shares
Dec. 31, 2025
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Number of equity incentive plans | equity_plan           4      
Total unrecognized compensation cost related to unvested stock options           $ 70,100      
Aggregate intrinsic value           $ 226,500 $ 336,300 $ 5,900,000  
Number of options vested (in shares) | shares           4,567,625 7,592,673 14,966,504  
Weighted average grant date fair value (in dollars per share) | $ / shares           $ 15.93 $ 12.46 $ 8.74  
Granted (in shares) | shares           843,000      
Number of employees holding awards that have been modified | employees       1,198          
Stock based compensation expense           $ 864,710 $ 1,565,823 $ 820,685  
Options granted, weighted average exercise price per share (in dollars per share) | $ / shares           $ 73.07      
Share based payment arrangement, capitalized           $ 53,600 118,000 3,500  
Income tax benefit related to stock based compensation           $ (205,600) $ 246,600 (1,400,000)  
2021 Equity Incentive Plan                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Term of annual increase in shares authorized           10 years      
Annual increase in shares authorized           5.00%      
2019 Plan                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Contractual period (up to)           7 years      
Award requisite service period           2 years      
Chief Executive Officer                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Total grant date fair value     $ 56,700            
Class A common stock                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Common stock, issued (in shares) | shares       182,796,000   195,192,000 182,796,000    
Common stock, outstanding (in shares) | shares       182,796,000   195,192,000 182,796,000    
Options granted to certain employees (in shares) | shares           842,617      
Options granted to certain employees, weighted average exercise price per share (in dollars per share) | $ / shares           $ 40.85      
Stock based compensation vesting period           3 years      
Class A common stock | Options, RSUs and PRSUs Under The Plans                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Common stock reserved for future issuance (in shares) | shares           28,948,240      
Class A common stock | Chief Executive Officer                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Granted (in shares) | shares     9,293,911            
Options granted, weighted average exercise price per share (in dollars per share) | $ / shares     $ 23.46            
Class B common stock                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Common stock, issued (in shares) | shares       48,070,000   46,856,000 48,070,000    
Common stock, outstanding (in shares) | shares       48,070,000   46,856,000 48,070,000    
Class B common stock | Options, RSUs and PRSUs Under The Plans                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Common stock reserved for future issuance (in shares) | shares           3,568,760      
Shares Available for Future Issuance Under the 2021 Plan                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Common stock reserved for future issuance (in shares) | shares           49,433,488      
Stock options                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Contractual period (up to)           10 years      
Threshold percentage for exercise price of estimate fair value of underlying shares           100.00%      
Threshold percentage for exercise price of estimate fair value of underlying shares of shareholder with ten or more percent of voting power           110.00%      
Unrecognized compensation cost, weighted-average period of recognition           2 years 3 months 18 days      
Number of shares subject to repurchase (in shares) | shares       166,481   29,430 166,481    
Value of shares related to repurchase       $ 3,300   $ 600 $ 3,300    
Stock options | 2021 Equity Incentive Plan                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Stock based compensation vesting period           3 years      
Stock options | New Employees                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Stock based compensation vesting period           4 years      
Stock options | New Employees | Share-based Payment Arrangement, Tranche One                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Vesting rights, percentage           25.00%      
Stock options | Existing Employees                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Stock based compensation vesting period           4 years      
Vesting rights, percentage           2.083%      
Share-based payment arrangement | Chief Executive Officer                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Number of options vested (in shares) | shares   3,159,930              
Stock based compensation expense           $ 3,900 $ 3,900 $ 29,500  
RSUs                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Unrecognized compensation cost, weighted-average period of recognition           1 year 3 months 18 days      
Granted, Weighted-average grant date fair value per share (in dollars per share) | $ / shares           $ 58.04 $ 112.35 $ 233.24  
Aggregate fair value           $ 753,900 $ 947,900 $ 644,200  
Stock based compensation expense           36,100      
Total unrecognized compensation cost           $ 284,200      
Granted (in shares) | shares           9,408,000      
RSUs | Minimum                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Stock based compensation vesting period           1 year      
RSUs | Maximum                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Stock based compensation vesting period           4 years      
Restricted common stock                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Stock based compensation vesting period           3 years      
Unrecognized compensation cost, weighted-average period of recognition           1 year 4 months 24 days      
Granted, Weighted-average grant date fair value per share (in dollars per share) | $ / shares           $ 64.51 $ 137.05 $ 180.33  
Aggregate fair value           $ 56,000 $ 148,600 $ 65,000  
Total unrecognized compensation cost           $ 33,200      
Granted (in shares) | shares           263,000      
ESPP                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Stock based compensation expense           $ 17,300 28,400 $ 9,400  
Period for automatic share increase           10 years      
Percentage of outstanding stock maximum           1.00%      
Accumulated payroll deductions       $ 6,700   $ 4,100 $ 6,700    
ESPP | Class A common stock                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Discount on purchase price of common stock         15.00%        
ESPP | Class A common stock | 2021 Employee Stock Purchase Plan                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Common stock reserved for future issuance (in shares) | shares           9,000,000      
Performance shares | President                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Common stock reserved for future issuance (in shares) | shares 803,966                
Stock based compensation expense           $ 9,800      
Granted (in shares) | shares 401,983                
Performance shares | President | Forecast                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Stock based compensation vesting period                 3 years
Performance shares | President | Share-based Payment Arrangement, Tranche One                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Vesting rights, percentage 40.00%                
Grant date fair value $ 19,500                
Performance shares | President | Share-based Payment Arrangement, Tranche Two                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Vesting rights, percentage 60.00%                
Grant date fair value $ 25,100                
PRSUs                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Unrecognized compensation cost, weighted-average period of recognition           1 year 10 months 24 days      
Granted, Weighted-average grant date fair value per share (in dollars per share) | $ / shares           $ 55.42      
Granted (in shares) | shares           804,000      
PRSUs | Share-based Payment Arrangement, Tranche One                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Total unrecognized compensation cost           $ 0      
PRSUs | Share-based Payment Arrangement, Tranche Two                  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]                  
Total unrecognized compensation cost           $ 15,300      
v3.24.0.1
STOCK-BASED COMPENSATION - Schedule of stock option activity (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Options Outstanding    
Beginning balance (in shares) 31,795  
Granted (in shares) 843  
Exercised (in shares) (3,039)  
Forfeited and cancelled (in shares) (902)  
Ending balance (in shares) 28,697 31,795
Weighted Average Exercise Price per Share    
Options outstanding, weighted average exercise price per share - Beginning balance (in dollars per share) $ 23.31  
Options granted, weighted average exercise price per share (in dollars per share) 73.07  
Options exercised, weighted average exercise price per share (in dollars per share) 15.84  
Options forfeited and cancelled, weighted average exercise price per share (in dollars per share) 40.90  
Options outstanding, weighted average exercise price per share - Ending balance (in dollars per share) $ 25.01 $ 23.31
Stock Option Activity, Additional Disclosures    
Options outstanding, Weighted average remaining contractual term 6 years 1 month 6 days 7 years
Options outstanding, Aggregate intrinsic value $ 4,295,055 $ 504,222
Options vested and exercisable, Number of options (in shares) 22,560  
Options vested and exercisable , Weighted average exercise price per share (in dollars per share) $ 25.43  
Options vested and exercisable, Weighted average remaining contractual term 6 years  
Options vested and exercisable, Aggregate intrinsic value $ 3,371,636  
Options vested and expected to vest, Number of options (in shares) 22,593  
Options vested and expected to vest, Weighted average exercise price per share (in dollars per share) $ 25.42  
Options vested and expected to vest, Weighted average remaining contractual term 6 years  
Options vested and expected to vest, Aggregate intrinsic value $ 3,376,658  
v3.24.0.1
STOCK-BASED COMPENSATION - Valuation Assumptions (Details) - Stock options
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]      
Dividend yield 0.00% 0.00% 0.00%
Expected volatility 90.50% 59.30% 44.00%
Expected term (in years) 5 years 9 months 18 days 5 years 9 months 18 days 4 years 9 months 18 days
Risk-free interest rate 3.90% 2.10% 0.50%
v3.24.0.1
STOCK-BASED COMPENSATION - Schedule of restricted stock unit and restricted stock activity (Details) - $ / shares
shares in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
RSUs      
Number of Shares      
Beginning balance (in shares) 5,329    
Granted (in shares) 9,408    
Vested (in shares) (10,278)    
Forfeited and cancelled (in shares) (1,443)    
Ending balance (in shares) 3,016 5,329  
Weighted-Average Grant Date Fair Value Per Share      
Beginning balance, weighted-average grant date fair value per share (in dollars per share) $ 127.85    
Granted, Weighted-average grant date fair value per share (in dollars per share) 58.04 $ 112.35 $ 233.24
Vested, Weighted-average grant date fair value per share (in dollars per share) 71.40    
Forfeited and cancelled, Weighted-average grant date fair value per share (in dollars per share) 116.14    
Ending balance, weighted-average grant date fair value per share (in dollars per share) $ 108.07 $ 127.85  
Restricted common stock      
Number of Shares      
Beginning balance (in shares) 1,275    
Granted (in shares) 263    
Vested (in shares) (966)    
Forfeited and cancelled (in shares) (29)    
Ending balance (in shares) 543 1,275  
Weighted-Average Grant Date Fair Value Per Share      
Beginning balance, weighted-average grant date fair value per share (in dollars per share) $ 139.72    
Granted, Weighted-average grant date fair value per share (in dollars per share) 64.51 $ 137.05 $ 180.33
Vested, Weighted-average grant date fair value per share (in dollars per share) 132.53    
Forfeited and cancelled, Weighted-average grant date fair value per share (in dollars per share) 171.85    
Ending balance, weighted-average grant date fair value per share (in dollars per share) $ 114.22 $ 139.72  
v3.24.0.1
STOCK-BASED COMPENSATION - Schedule of performance restricted stock unit (Details) - PRSUs
shares in Thousands
 12 Months Ended
Dec. 31, 2023
$ / shares
shares
Number of Shares  
Beginning balance (in shares) | shares 0
Granted (in shares) | shares 804
Ending balance (in shares) | shares 804
Weighted-Average Grant Date Fair Value Per Share  
Beginning balance, weighted-average grant date fair value per share (in dollars per share) | $ / shares $ 0
Granted, Weighted-average grant date fair value per share (in dollars per share) | $ / shares 55.42
Ending balance, weighted-average grant date fair value per share (in dollars per share) | $ / shares $ 55.42
v3.24.0.1
STOCK-BASED COMPENSATION - Schedule of stock based compensation (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Stock based compensation expense $ 864,710 $ 1,565,823 $ 820,685
Technology and development      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Stock based compensation expense 476,478 1,093,983 571,861
Sales and marketing      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Stock based compensation expense 59,000 76,153 32,944
General and administrative      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Stock based compensation expense 245,190 395,687 215,880
Restructuring      
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]      
Stock based compensation expense $ 84,042 $ 0 $ 0
v3.24.0.1
OTHER (INCOME) EXPENSE, NET (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Other Income and Expenses [Abstract]      
Foreign exchange losses, net $ 10,609 $ 161,749 $ 40,989
(Gains) losses on strategic investments (24,368) 101,219 (19,602)
Gain on extinguishment of long-term debt, net (117,383) 0 0
Other (36,441) 2,505 (924)
Other (income) expense, net $ (167,583) $ 265,473 $ 20,463
v3.24.0.1
INCOME TAXES - Schedule of Income before Income Tax, Domestic and Foreign (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Income Tax Disclosure [Abstract]      
Domestic $ (113,067) $ (3,071,951) $ 2,977,406
Foreign 36,222 7,369 49,541
(Loss) income before income taxes $ (76,845) $ (3,064,582) $ 3,026,947
v3.24.0.1
INCOME TAXES - Schedule of Components of Income Tax Expense (Benefit) (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Current      
Federal $ 8,761 $ 1,654 $ (51,942)
State 24,236 3,985 4,456
Foreign 11,621 22,763 8,642
Total current 44,618 28,402 (38,844)
Deferred      
Federal (218,165) (361,056) (438,810)
State 416 (126,713) (93,959)
Foreign 1,415 19,734 (25,560)
Total deferred (216,334) (468,035) (558,329)
Benefit from income taxes $ (171,716) $ (439,633) $ (597,173)
v3.24.0.1
INCOME TAXES - Schedule of Effective Income Tax Rate Reconciliation (Details)
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Income Tax Disclosure [Abstract]      
U.S. statutory rate 21.00% 21.00% 21.00%
State income taxes, net of federal benefit 6.08% 5.04% (4.67%)
Foreign rate differential (0.14%) (0.02%) (1.09%)
Non-deductible compensation (48.93%) (1.34%) 0.83%
Equity compensation 43.51% (3.43%) (31.95%)
Adjustment to prior year provision 24.85% (0.23%) 0.14%
Research and development (“R&D”) credits 62.20% 1.40% (9.60%)
Change in valuation allowance 195.59% (6.37%) 1.65%
Foreign tax credit 6.31% 0.00% 0.00%
Foreign Derived Intangible Income (“FDII”) 0.65% 0.00% 0.00%
Global Intangible Low Taxed Income (“GILTI”) (18.55%) (0.94%) 0.00%
Uncertain tax positions (56.06%) (0.60%) 3.07%
Other (13.05%) (0.16%) 0.89%
Effective income tax rate 223.46% 14.35% (19.73%)
v3.24.0.1
INCOME TAXES - Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Deferred tax assets        
Safeguarded crypto liabilities $ 46,437,843 $ 19,086,117    
Accruals and reserves 13,847 6,248    
Net operating loss carryforward 55,563 396,613    
Lease liability 4,494 19,967    
Tax credit carryforward 351,003 301,862    
Stock-based compensation 21,284 24,527    
Intangibles 49,255 27,022    
Capitalized expenses 759,789 415,981    
Capital losses - realized / unrealized 207,563 225,211    
Gross deferred tax assets 47,900,641 20,503,548    
Less valuation allowance (102,250) (252,258) $ (54,383) $ (5,174)
Total deferred tax assets 47,798,391 20,251,290    
Deferred tax liabilities        
Safeguarded crypto assets (46,437,843) (19,086,117)    
State taxes (13,169) (23,212)    
Depreciation and amortization (32,246) (35,893)    
Prepaid expenses (10,870) (5,938)    
Right of use asset (3,894) (18,246)    
Installment gain (10,918) (13,443)    
Other (17,218) (21,650)    
Total deferred tax liabilities (46,526,158) (19,204,499)    
Total net deferred tax assets $ 1,272,233 $ 1,046,791    
v3.24.0.1
INCOME TAXES - Narrative (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Operating Loss Carryforwards [Line Items]        
Effective income tax rate 223.46% 14.35% (19.73%)  
Deferred tax assets, net $ 1,272,233 $ 1,046,791    
Unrecognized tax benefits 171,693 124,106 $ 111,019 $ 12,807
Unrecognized tax benefits that would impact effective tax rate 126,800 114,400    
Decrease in unrecognized tax benefits is reasonably possible 71,800      
Portion that would favorably impact effective tax rate 67,400      
Income tax penalties accrued 1,600 500    
Interest on income taxes accrued 500 300    
Domestic Tax Authority        
Operating Loss Carryforwards [Line Items]        
Tax credit carryforward 260,600      
Operating loss carryforwards 105,000 $ 1,300,000    
State and Local Jurisdiction        
Operating Loss Carryforwards [Line Items]        
Tax credit carryforward 97,500      
Operating loss carryforwards $ 331,700      
v3.24.0.1
INCOME TAXES - Summary of Valuation Allowance (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Valuation Allowance [Roll Forward]      
Balance, beginning of period $ 252,258 $ 54,383 $ 5,174
Charged (credited) to expenses (150,008) 197,875 49,209
Balance, end of period $ 102,250 $ 252,258 $ 54,383
v3.24.0.1
INCOME TAXES - Schedule of Unrecognized Tax Benefits Roll Forward (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward]      
Balance, beginning of period $ 124,106 $ 111,019 $ 12,807
Settlements 0 (6,128) 0
Increase related to tax positions taken during a prior year 30,685 13,940 0
Decrease related to tax positions taken during a prior year 0 (9,187) 0
Increase related to tax positions taken during the current year 16,902 14,462 98,212
Balance, end of period $ 171,693 $ 124,106 $ 111,019
v3.24.0.1
NET INCOME (LOSS) PER SHARE - Schedule of net income per share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Numerator      
Net income (loss) $ 94,871 $ (2,624,949) $ 3,624,120
Less: Income allocated to participating securities (119) 0 (527,162)
Net income (loss) attributable to common stockholders, basic $ 94,752 $ (2,624,949) $ 3,096,958
Denominator      
Weighted-average shares of common stock used to compute net loss per share attributable to common stockholders, basic (in shares) 235,796 222,314 177,319
Net loss per share attributable to common stockholders, basic (in dollars per share) $ 0.40 $ (11.81) $ 17.47
Numerator      
Net income (loss) $ 94,871 $ (2,624,949) $ 3,624,120
Less: Income allocated to participating securities (120) 0 (439,229)
Add: Interest on convertible notes, net of tax 0 0 6,208
Less: Fair value gain on contingent consideration arrangement, net of tax 0 (6,230) (695)
Net income (loss) attributable to common stockholders, diluted $ 94,751 $ (2,631,179) $ 3,190,404
Denominator      
Weighted-average shares of common stock used to compute net loss per share attributable to common stockholders, basic (in shares) 235,796 222,314 177,319
Warrants (in shares) 0 0 72
Convertible notes (in shares) 0 0 2,388
Contingent consideration (in shares) 0 24 8
Weighted-average shares of common stock used to compute net (loss) income per share attributable to common stockholders, diluted (in shares) 254,391 222,338 219,965
Net income loss per share attributable to common stockholders, diluted (in dollars per share) $ 0.37 $ (11.83) $ 14.50
Stock options      
Denominator      
Weighted-average effect of potentially dilutive securities (in shares) 16,845 0 36,396
RSUs      
Denominator      
Weighted-average effect of potentially dilutive securities (in shares) 1,605 0 3,773
Restricted common stock      
Denominator      
Weighted-average effect of potentially dilutive securities (in shares) 145 0 9
v3.24.0.1
NET INCOME (LOSS) PER SHARE - Schedule of potentially dilutive shares (Details) - shares
shares in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Number of shares excluded in the computation of diluted earnings per share 12,612 44,551 6,585
Stock options      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Number of shares excluded in the computation of diluted earnings per share 6,743 31,795 6,134
RSUs      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Number of shares excluded in the computation of diluted earnings per share 929 5,329 151
Convertible notes      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Number of shares excluded in the computation of diluted earnings per share 3,437 3,880 0
ESPP      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Number of shares excluded in the computation of diluted earnings per share 918 1,945 295
Restricted common stock      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Number of shares excluded in the computation of diluted earnings per share 263 1,602 5
PRSUs      
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]      
Number of shares excluded in the computation of diluted earnings per share 322 0 0
v3.24.0.1
COMMITMENTS AND CONTINGENCIES (Details)
$ in Millions
 1 Months Ended 2 Months Ended
Jan. 31, 2023
USD ($)
Aug. 31, 2021
class_action_case
Commitments and Contingencies Disclosure [Abstract]    
Number of purported securities class actions filed | class_action_case   3
Penalty awarded $ 50.0  
Amount to be invested in company compliance function $ 50.0  
v3.24.0.1
RELATED PARTY TRANSACTIONS (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Related Party Transaction [Line Items]      
Revenue $ 3,108,383 $ 3,194,208 $ 7,839,444
Safeguarding customer crypto assets 192,583,060 75,413,188  
Safeguarding customer crypto liabilities 192,583,060 75,413,188  
Customer custodial cash liabilities 4,570,845 4,829,587  
Related Party      
Related Party Transaction [Line Items]      
Revenue 17,900 12,900 29,100
Amounts receivable from customers, net of allowance 3,400 1,300  
Safeguarding customer crypto assets 8,800,000 3,500,000  
Safeguarding customer crypto liabilities 8,800,000 3,500,000  
Custodial cash funds, current 348,000 14,200  
Customer custodial cash liabilities 348,000 14,200  
Investments and other assets 4,000 13,800  
Professional and consulting services $ 2,500 $ 0 $ 0
v3.24.0.1
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION - Changes in Operating Assets and Liabilities (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Supplemental Cash Flow Elements [Abstract]      
USDC $ 254,571 $ (848,138) $ (77,471)
Accounts and loans receivable 80,375 (141,023) 28,511
Deposits in transit (115,391) 28,952 (36,527)
Income taxes, net 8,547 1,906 (62,145)
Other current and non-current assets 28,033 19,237 (20,060)
Accounts payable 954 18,612 27,330
Lease liabilities (39,733) (10,223) (20,596)
Other current and non-current liabilities 108,850 (100,771) 302,396
Net changes in operating assets and liabilities $ 326,206 $ (1,031,448) $ 141,438
v3.24.0.1
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION - Reconciliation of Cash, Cash Equivalents and Restricted Cash (Details) - USD ($)
$ in Thousands
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Dec. 31, 2020
Supplemental Cash Flow Elements [Abstract]        
Cash and cash equivalents $ 5,139,351 $ 4,425,021 $ 7,123,478  
Restricted cash 22,992 25,873 30,951  
Customer custodial funds 4,393,086 4,978,752 10,526,233  
Total cash, cash equivalents, and restricted cash $ 9,555,429 $ 9,429,646 $ 17,680,662 $ 4,856,029
v3.24.0.1
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION - Non-cash Investing and Financing Activities (Details) - USD ($)
$ in Thousands
 12 Months Ended
Dec. 31, 2023
Dec. 31, 2022
Dec. 31, 2021
Supplemental Cash Flow Elements [Abstract]      
Crypto assets borrowed $ 450,663 $ 920,379 $ 1,134,876
Crypto assets borrowed repaid with crypto assets 559,191 1,432,688 609,600
Crypto loans originated 396,981 0 0
Crypto loans repaid 469,763 0 0
Non-cash assets received as collateral 255,383 26,874 0
Non-cash assets received as collateral returned 282,257 0 0
Non-cash assets pledged as collateral 156,963 58,377 0
Non-cash assets pledged as collateral returned 163,460 0 0
Non-cash consideration paid for business combinations 51,494 324,925 571,196
Purchase of crypto assets and investments with non-cash consideration 27,977 19,967 13,511
Realized gain on crypto assets held as investments 48,491 0 0
Disposal of crypto assets and investments for non-cash consideration 42,551 617 0
Changes in right-of-use assets and operating lease obligations $ 17,530 $ 3,059 $ 27,286