COINBASE GLOBAL, INC., 10-Q filed on 8/1/2024
Quarterly Report
v3.24.2.u1
Cover Page - shares
 6 Months Ended
Jun. 30, 2024
Jul. 25, 2024
Entity Information [Line Items]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Jun. 30, 2024  
Document Transition Report false  
Entity File Number 001-40289  
Entry Registrant Name Coinbase Global, Inc.  
Entity Incorporation, State or Country Code DE  
Entity Tax Identification Number 46-4707224  
Title of 12(b) Security Class A common stock, $0.00001 par value per share  
Trading Symbol COIN  
Security Exchange Name NASDAQ  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Central Index Key 0001679788  
Amendment Flag false  
Document Fiscal Year Focus 2024  
Document Fiscal Period Focus Q2  
Current Fiscal Year End Date --12-31  
Class A common stock    
Entity Information [Line Items]    
Entity Common Stock, Shares Outstanding   202,952,721
Class B common stock    
Entity Information [Line Items]    
Entity Common Stock, Shares Outstanding   45,524,996
v3.24.2.u1
Condensed Consolidated Balance Sheets - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Current assets:    
Cash and cash equivalents $ 7,225,535 $ 5,139,351
Restricted cash and cash equivalents 34,282 22,992
Customer custodial funds 4,197,837 4,570,845
Safeguarding customer crypto assets 269,198,067 192,583,060
USDC 1,056,648 576,028
Loan receivables 440,351 193,425
Crypto assets held as collateral 21,119 0
Crypto assets held as collateral   0
Crypto assets borrowed 223,123 45,212
Accounts receivable, net 236,444 168,290
Other current assets 253,226 286,643
Total current assets 282,886,632 203,585,846
Crypto assets held for investment 1,234,158  
Crypto assets held for investment   330,610
Deferred tax assets 1,010,154 1,272,233
Goodwill 1,139,670 1,139,670
Other non-current assets 688,559 654,594
Total assets 286,959,173 206,982,953
Current liabilities:    
Customer custodial cash liabilities 4,197,837 4,570,845
Safeguarding customer crypto liabilities 269,198,067 192,583,060
Crypto asset borrowings 237,474 62,980
Obligation to return collateral 272,171 1,063
Accrued expenses and other current liabilities 448,170 496,183
Total current liabilities 274,353,719 197,714,131
Long-term debt 4,228,019 2,979,957
Other non-current liabilities 6,666 7,216
Total liabilities 278,588,404 200,701,304
Commitments and contingencies (Note 18.)
Stockholders’ equity:    
Preferred stock, $0.00001 par value; 500,000 shares authorized and zero shares issued and outstanding at each of June 30, 2024 and December 31, 2023 0 0
Additional paid-in capital 4,816,808 4,491,571
Accumulated other comprehensive loss (40,271) (30,270)
Retained earnings 3,594,230 1,820,346
Total stockholders’ equity 8,370,769 6,281,649
Total liabilities and stockholders’ equity 286,959,173 206,982,953
Class A common stock    
Stockholders’ equity:    
Common stock 2 2
Class B common stock    
Stockholders’ equity:    
Common stock $ 0 $ 0
v3.24.2.u1
Condensed Consolidated Balance Sheets (Parenthetical) - $ / shares
Jun. 30, 2024
Dec. 31, 2023
Convertible preferred stock par value (in dollars per share) $ 0.00001 $ 0.00001
Convertible preferred shares authorized (in shares) 500,000,000 500,000,000
Convertible preferred shares issued (in shares) 0 0
Convertible preferred shares outstanding (in shares) 0 0
Class A common stock    
Common stock, par value (in dollars per share) $ 0.00001 $ 0.00001
Common stock, authorized (in shares) 10,000,000,000 10,000,000,000
Common stock, issued (in shares) 202,766,000 195,192,000
Common stock, outstanding (in shares) 202,766,000 195,192,000
Class B common stock    
Common stock, par value (in dollars per share) $ 0.00001 $ 0.00001
Common stock, authorized (in shares) 500,000,000 500,000,000
Common stock, issued (in shares) 45,571,000 46,856,000
Common stock, outstanding (in shares) 45,571,000 46,856,000
v3.24.2.u1
Condensed Consolidated Statements of Operations - USD ($)
shares in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Revenue:        
Revenue $ 1,449,628 $ 707,911 $ 3,087,198 $ 1,480,440
Operating expenses:        
Transaction expense 191,477 108,200 408,884 204,569
Technology and development 364,258 320,667 722,121 678,698
Sales and marketing 165,262 83,853 263,847 147,829
General and administrative 320,115 258,988 607,351 507,749
Losses (gains) on crypto assets held for operations, net 31,016 0 (55,342) 0
Crypto asset impairment, net 0 (8,053) 0 9,909
Restructuring 0 (1,035) 0 143,454
Other operating expense (income), net 34,383 18,866 36,759 (14,318)
Total operating expenses 1,106,511 781,486 1,983,620 1,677,890
Operating income (loss) 343,117 (73,575) 1,103,578 (197,450)
Interest expense 20,507 21,672 39,578 43,208
Losses (gains) on crypto assets held for investment, net 319,020 0 (331,409) 0
Other expense (income), net 63,827 (16,564) 18,222 3,701
(Loss) income before income taxes (60,237) (78,683) 1,377,187 (244,359)
(Benefit from) provision for income taxes (96,387) 18,722 164,792 (68,058)
Net income (loss) 36,150 (97,405) 1,212,395 (176,301)
Net income (loss) attributable to common stockholders:        
Basic 36,127 (97,405) 1,211,611 (176,301)
Diluted $ 36,128 $ (97,601) $ 1,217,829 $ (176,497)
Net income (loss) per share attributable to common stockholders:        
Basic (in dollars per share) $ 0.15 $ (0.42) $ 4.95 $ (0.76)
Diluted (in dollars per share) $ 0.14 $ (0.42) $ 4.49 $ (0.76)
Weighted-average shares of common stock used to compute net income (loss) per share attributable to common stockholders:        
Basic (in shares) 246,298 234,614 244,546 233,060
Diluted (in shares) 266,831 234,641 271,003 233,087
Net revenue        
Revenue:        
Revenue $ 1,379,942 $ 662,500 $ 2,967,619 $ 1,398,898
Other revenue        
Revenue:        
Revenue $ 69,686 $ 45,411 $ 119,579 $ 81,542
v3.24.2.u1
Condensed Consolidated Statements of Comprehensive Income (Loss) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Statement of Comprehensive Income [Abstract]        
Net income (loss) $ 36,150 $ (97,405) $ 1,212,395 $ (176,301)
Other comprehensive (loss) income:        
Translation adjustment (2,785) (6,981) (9,683) 5,532
Income tax effect (10) (1,598) 318 718
Translation adjustment, net of tax (2,775) (5,383) (10,001) 4,814
Comprehensive income (loss) $ 33,375 $ (102,788) $ 1,202,394 $ (171,487)
v3.24.2.u1
Condensed Consolidated Statements of Changes in Stockholders' Equity - USD ($)
shares in Thousands, $ in Thousands
Total
Cumulative Adjustment
Common Stock
Additional Paid-In Capital
Accumulated Other Comprehensive Loss
Retained Earnings
Retained Earnings
Cumulative Adjustment
Beginning balance (in shares) at Dec. 31, 2022     230,866        
Beginning balance at Dec. 31, 2022 $ 5,454,557   $ 2 $ 3,767,686 $ (38,606) $ 1,725,475  
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Issuance of equity instruments as consideration for business combination (in shares)     961        
Issuance of equity instruments as consideration for business combination 44,995     44,995      
Issuance of common stock upon settlement of stock awards, net of shares withheld (in shares)     3,627        
Issuance of common stock upon settlement of stock awards, net of shares withheld (115,392)     (115,392)      
Issuance of common stock upon exercise of stock options, net of repurchases (in shares)     1,180        
Issuance of common stock upon exercise of stock options, net of repurchases 18,001     18,001      
Issuance of common stock under the Employee Stock Purchase Plan (the “ESPP”), net of shares withheld (in shares)     254        
Issuance of common stock under the Employee Stock Purchase Plan (the “ESPP”), net of shares withheld 12,381     12,381      
Stock-based compensation expense 427,606     427,606      
Stock-based compensation expense recognized in relation to restructuring 84,042     84,042      
Comprehensive income (loss) 4,814       4,814    
Net income (loss) (176,301)         (176,301)  
Ending balance (in shares) at Jun. 30, 2023     236,888        
Ending balance at Jun. 30, 2023 5,754,703   $ 2 4,239,319 (33,792) 1,549,174  
Beginning balance (in shares) at Dec. 31, 2022     230,866        
Beginning balance at Dec. 31, 2022 5,454,557   $ 2 3,767,686 (38,606) 1,725,475  
Ending balance (in shares) at Dec. 31, 2023     242,048        
Ending balance at Dec. 31, 2023 $ 6,281,649 $ 561,489 $ 2 4,491,571 (30,270) 1,820,346 $ 561,489
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Accounting Standards Update [Extensible Enumeration] Accounting Standards Update 2023-08 [Member]            
Beginning balance (in shares) at Mar. 31, 2023     234,495        
Beginning balance at Mar. 31, 2023 $ 5,674,946   $ 2 4,056,774 (28,409) 1,646,579  
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Issuance of common stock upon settlement of stock awards, net of shares withheld (in shares)     1,672        
Issuance of common stock upon settlement of stock awards, net of shares withheld (52,895)     (52,895)      
Issuance of common stock upon exercise of stock options, net of repurchases (in shares)     467        
Issuance of common stock upon exercise of stock options, net of repurchases 8,435     8,435      
Issuance of common stock under the Employee Stock Purchase Plan (the “ESPP”), net of shares withheld (in shares)     254        
Issuance of common stock under the Employee Stock Purchase Plan (the “ESPP”), net of shares withheld 12,381     12,381      
Stock-based compensation expense 214,624     214,624      
Comprehensive income (loss) (5,383)       (5,383)    
Net income (loss) (97,405)         (97,405)  
Ending balance (in shares) at Jun. 30, 2023     236,888        
Ending balance at Jun. 30, 2023 5,754,703   $ 2 4,239,319 (33,792) 1,549,174  
Beginning balance (in shares) at Dec. 31, 2023     242,048        
Beginning balance at Dec. 31, 2023 6,281,649 $ 561,489 $ 2 4,491,571 (30,270) 1,820,346 $ 561,489
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Issuance of common stock upon settlement of stock awards, net of shares withheld (in shares)     2,562        
Issuance of common stock upon settlement of stock awards, net of shares withheld $ (117,225)     (117,225)      
Issuance of common stock upon exercise of stock options, net of repurchases (in shares) 3,515   3,512        
Issuance of common stock upon exercise of stock options, net of repurchases $ 70,077     70,077      
Issuance of common stock under the Employee Stock Purchase Plan (the “ESPP”), net of shares withheld (in shares)     215        
Issuance of common stock under the Employee Stock Purchase Plan (the “ESPP”), net of shares withheld 10,557     10,557      
Stock-based compensation expense 465,938     465,938      
Purchase of capped calls (104,110)     (104,110)      
Comprehensive income (loss) (10,001)       (10,001)    
Net income (loss) 1,212,395         1,212,395  
Ending balance (in shares) at Jun. 30, 2024     248,337        
Ending balance at Jun. 30, 2024 8,370,769   $ 2 4,816,808 (40,271) 3,594,230  
Beginning balance (in shares) at Mar. 31, 2024     245,371        
Beginning balance at Mar. 31, 2024 8,070,994   $ 2 4,550,408 (37,496) 3,558,080  
Increase (Decrease) in Stockholders' Equity [Roll Forward]              
Issuance of common stock upon settlement of stock awards (in shares)     1,563        
Issuance of common stock upon exercise of stock options, net of repurchases (in shares)     1,188        
Issuance of common stock upon exercise of stock options, net of repurchases 25,474     25,474      
Issuance of common stock under the Employee Stock Purchase Plan (the “ESPP”), net of shares withheld (in shares)     215        
Issuance of common stock under the Employee Stock Purchase Plan (the “ESPP”), net of shares withheld 10,557     10,557      
Stock-based compensation expense 230,369     230,369      
Comprehensive income (loss) (2,775)       (2,775)    
Net income (loss) 36,150         36,150  
Ending balance (in shares) at Jun. 30, 2024     248,337        
Ending balance at Jun. 30, 2024 $ 8,370,769   $ 2 $ 4,816,808 $ (40,271) $ 3,594,230  
v3.24.2.u1
Condensed Consolidated Statements of Cash Flows - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Cash flows from operating activities    
Net income (loss) $ 1,212,395 $ (176,301)
Adjustments to reconcile net income (loss) to net cash provided by operating activities:    
Depreciation and amortization 63,828 78,190
Stock-based compensation expense 442,438 398,632
Deferred income taxes 83,961 (71,435)
Non-cash lease expense 5,575 34,173
Gains on crypto assets held for investment and operations, net (386,751)  
Gains on crypto assets held for investment and operations, net   (95,390)
Gains on crypto assets borrowed and borrowings, net (1,173) (13,930)
Restructuring stock-based compensation expense 0 84,042
Crypto asset impairment expense (prior to ASU 2023-08) 0 54,333
Realized loss on crypto futures contract 0 43,339
Crypto assets received as revenue (prior to ASU 2023-08) 0 (211,923)
Crypto asset payments for expenses (prior to ASU 2023-08) 0 135,002
Other operating activities, net 43,043 28,626
Net changes in operating assets and liabilities (567,634) 326,844
Net cash provided by operating activities 895,682 614,202
Cash flows from investing activities    
Fiat loans originated (808,334) (144,283)
Proceeds from repayment of fiat loans 646,700 109,630
Purchase of crypto assets held for investment 0 (99,064)
Sale of crypto assets held for investment 52,425 188,026
Settlement of crypto futures contract 0 (43,339)
Other investing activities, net (35,083) (23,724)
Net cash used in investing activities (144,292) (12,754)
Cash flows from financing activities    
Issuance of common stock upon exercise of stock options, net of repurchases 69,521 16,649
Taxes paid related to net share settlement of equity awards (117,225) (115,392)
Customer custodial cash liabilities (357,657) (987,957)
Issuance of convertible senior notes, net 1,246,025 0
Repurchases of senior and convertible notes 0 (45,469)
Purchase of capped calls (104,110) 0
Fiat received as collateral 493,499 5,169
Fiat received as collateral returned (243,510) (3,766)
Other financing activities 7,445 (11,497)
Net cash provided by (used in) financing activities 993,988 (1,142,263)
Net increase (decrease) in cash, cash equivalents, and restricted cash and cash equivalents 1,745,378 (540,815)
Effect of exchange rates on cash, cash equivalents, and restricted cash and cash equivalents (25,923) (4,370)
Cash, cash equivalents, and restricted cash and cash equivalents, beginning of period 9,555,429 9,429,646
Cash, cash equivalents, and restricted cash and cash equivalents, end of period 11,274,884 8,884,461
Supplemental disclosure of cash flow information    
Cash paid during the period for interest 33,424 38,684
Cash paid during the period for income taxes 81,552 10,669
Operating cash outflows for amounts included in the measurement of operating lease liabilities $ 6,291 $ 7,559
v3.24.2.u1
NATURE OF OPERATIONS
 6 Months Ended
Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
NATURE OF OPERATIONS
1. 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 remote-first and accordingly, does not maintain a headquarters or principal executive office. 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.
v3.24.2.u1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 6 Months Ended
Jun. 30, 2024
Accounting Policies [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of presentation and preparation
The accompanying Condensed Consolidated Financial Statements include the accounts of the Company and its subsidiaries – entities in which the Company holds, directly or indirectly, more than 50% of the voting rights, or where it exercises control. The Condensed Consolidated Financial Statements are unaudited but have been prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“GAAP”) on the same basis as the audited Consolidated Financial Statements, and in management’s opinion, reflect all adjustments, consisting only of normal, recurring adjustments, that are necessary for the fair presentation of the Company’s Financial Statements. Preparation of the Condensed Consolidated Financial Statements in accordance with GAAP requires management to make estimates and assumptions in the Condensed Consolidated Financial Statements and notes thereto. Certain prior period amounts in the Condensed Consolidated Financial Statements have been reclassified to conform to the current period’s presentation. The unaudited Condensed Consolidated Results of Operations for the three and six months ended June 30, 2024 are not necessarily indicative of the results to be expected for the full year or any other period and should be read in conjunction with the audited Consolidated Financial Statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission (the “SEC”) on February 15, 2024 (the “Annual Report”).
There were no changes to the Company’s most significant estimates and assumptions, significant accounting policies, or recent accounting pronouncements that were disclosed in Note 2. Summary of Significant Accounting Policies to the audited Consolidated Financial Statements included in the Annual Report, other than as discussed below.
Concentration of credit risk
The Company’s cash and cash equivalents, restricted cash and cash equivalents, customer custodial funds, USDC, loan receivables, certain crypto assets held, accounts receivable, and deposits are potentially subject to concentration of credit risk. See below for a discussion of each of these risks by counterparty and type of transaction.
Funds held at financial institutions
Cash and cash equivalents, restricted cash and cash equivalents, 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.
Funds held at trading venues, payment processors, and clearing brokers
The Company holds cash, restricted cash, and crypto assets at crypto asset trading venues, payment processors, and clearing brokers, and performs a regular assessment of these venues as part of its risk management process. As of June 30, 2024, the Company held $159.2 million at these venues, including $97.1 million in cash and $46.0 million in crypto assets. As of December 31, 2023, the Company held $93.5 million at these venues, including $88.8 million in cash.
USDC
The Company holds USDC, a stablecoin redeemable on a one-to-one basis for U.S. dollars. USDC is accounted for as a financial instrument in the Condensed Consolidated Balance Sheets. The issuer of USDC reported that, as of June 30, 2024, underlying reserves were held in cash, short-duration U.S. Treasuries, and overnight U.S. Treasury repurchase agreements within segregated accounts for the benefit of USDC holders.
Accounts receivable
As of June 30, 2024 and December 31, 2023, the Company had two counterparties who accounted for more than 10% of the Company’s Accounts receivable, net. The Company performs a regular assessment of accounts receivable as part of its risk management process. In determining expected credit losses, the Company considers historical loss experience and the aging of its receivable balance. See Note 7. Accounts Receivable, Net for additional details.
Loan receivables
As of June 30, 2024 and December 31, 2023, the Company had three counterparties who accounted for more than 10% of the Company’s recorded loan receivables. As of both of these dates, the Company also had three counterparties who accounted for more than 10% of the Company’s customer loans that did not meet the recognition criteria. See Note 6. Collateralized Arrangements and Financing for additional details.
Revenue
During both the three and six months ended June 30, 2024 and 2023, one counterparty accounted for more than 10% of total revenue in each period.
Crypto assets held
The Company holds crypto assets for investment and operating purposes, as well as borrowed crypto assets and crypto assets held as collateral.
Effective January 1, 2024, the Company adopted ASU No. 2023-08, Accounting for and Disclosure of Crypto Assets (“ASU 2023-08”) using a modified retrospective approach. Upon adoption, the Company recognized a fair value adjustment on crypto assets held of $739.5 million and established an associated deferred tax liability of $177.9 million, for a net cumulative-effect adjustment of $561.5 million increasing retained earnings.
As a result of the adoption of ASU 2023-08, the Company introduced four new categories of crypto assets held in the Condensed Consolidated Balance Sheets based on their nature. This updated presentation aligns with the ASU 2023-08 requirements and describes the purpose of the various types of crypto assets held by the Company.
Crypto assets held for investment
Crypto assets held for investment are primarily held long term. The Company does not engage in regular trading of these crypto assets but may loan crypto assets held for investment through Prime Financing. See Note 6. Collateralized Arrangements and Financing for additional details on Prime Financing. Crypto assets held for investment are initially recorded at cost and are subsequently remeasured at fair value on a specific identification basis at the end of each reporting period, with changes in fair value recognized in net income. Fair value is measured using quoted crypto asset prices within the Company’s principal market at the time of measurement. Fair value gains and losses on Crypto assets held for investment are recorded in Losses (gains) on crypto assets held for investment, net in the Condensed Consolidated Statements of Operations. Cash flows from crypto asset investment purchases and sales are recorded in Net cash used in investing activities in the Condensed Consolidated Statements of Cash Flows.
Crypto assets held for operations
The Company may receive crypto assets as a form of payment for transaction revenue, blockchain rewards, custodial fee revenue, and other subscriptions and services revenue which are recorded in Crypto assets held for operations when received. Crypto assets received as a form of payment are converted to cash nearly immediately or are used timely to fulfill corporate expenses. Crypto assets held for operations are initially recorded at the transaction price of the crypto assets at contract inception and are subsequently remeasured at fair value on a first in first out basis at the end of each reporting period, with changes in fair value recognized in net income. Fair value is measured using quoted crypto asset prices within the Company’s principal market at the time of measurement. Fair value gains and losses on Crypto assets held for operations are recorded in Losses (gains) on crypto assets held for operations, net in the Condensed Consolidated Statements of Operations. Cash flows from crypto assets held for operations are recorded as Net changes in operating assets and liabilities in the Condensed Consolidated Statements of Cash Flows. Crypto assets held for operations are recorded in Other current assets in the Condensed Consolidated Balance Sheets.
Crypto assets borrowed
Crypto assets borrowed represent crypto assets borrowed from third parties to facilitate Prime Financing. Contemporaneously with the adoption of ASU 2023-08, the Company dedesignated $62.9 million of crypto assets borrowed that previously qualified as fair value hedges against the corresponding crypto asset borrowings. There was a net zero impact of the cumulative fair value hedge basis adjustments that were reversed and recorded in Transaction expense. As of December 31, 2023, the cumulative amount of the fair value hedge adjustment was $3.9 million.
Post hedge dedesignation and ASU 2023-08 adoption, crypto assets borrowed by the Company, that have not been loaned out, are recorded in Crypto assets borrowed in the Condensed Consolidated Balance Sheets. Crypto assets borrowed are initially recorded at cost and are subsequently remeasured at fair value using the average costing method at the end of each reporting period, with changes in fair value recognized in net income. Fair value is measured using quoted crypto asset prices within the Company’s principal market at the time of measurement. Fair value gains and losses on Crypto assets borrowed are recorded in Transaction expense. See Note 6. Collateralized Arrangements and Financing for further details on Crypto assets borrowed and Note 20. Supplemental Disclosures of Cash Flow Information for details on cash flows from Crypto assets borrowed included in the supplemental schedule of non-cash investing and financing activities.
Crypto assets held as collateral
The Company requires borrowers to pledge collateral on loans originated through Prime Financing. Crypto assets held as collateral are initially recorded at cost if the Company has the right to sell, pledge, or rehypothecate the assets and are subsequently remeasured at fair value using the specific identification method at the end of each reporting period, with changes in fair value recognized in net income. Fair value is measured using quoted crypto asset prices within the Company’s principal market at the time of measurement. Fair value gains and losses on Crypto assets held as collateral are recorded in Transaction expense in the Condensed Consolidated Statements of Operations. See Note 6. Collateralized Arrangements and Financing for additional details on Crypto assets held as collateral and Note 20. Supplemental Disclosures of Cash Flow Information for details on flows of non-cash collateral, including crypto assets, included in the supplemental schedule of non-cash investing and financing activities.
The following table shows the changes in presentation in the Condensed Consolidated Balance Sheets upon the Company’s adoption of ASU 2023-08 (in thousands):
December 31, 2023
Previously Reported
Adjustment
As Adjusted
Crypto assets held(1)
$449,925 $(449,925)$— 
Crypto assets held for investment
— 330,610 330,610 
Crypto assets held for operations
— 74,103 74,103 
Crypto assets borrowed
— 45,212 45,212 
$449,925 $— $449,925 
_________________
(1)Crypto assets held as collateral did not meet the recognition criteria as of December 31, 2023.
Recent accounting pronouncements
There have been no material developments relating to recent accounting pronouncements, including the expected dates of adoption and estimated effects on the Consolidated Financial Statements and footnote disclosures, since those disclosed in the Annual Report.
v3.24.2.u1
RESTRUCTURING
 6 Months Ended
Jun. 30, 2024
Restructuring and Related Activities [Abstract]  
RESTRUCTURING
3. RESTRUCTURING
In January 2023, the Company announced and completed a restructuring impacting 21% of the Company’s headcount as of December 31, 2022. The restructuring was intended to manage the Company’s operating expenses in response to the then-ongoing market conditions impacting the cryptoeconomy and business prioritization efforts. As a result, the Company recorded restructuring charges of $143.5 million, which included $84.0 million in stock-based compensation, $57.6 million in separation pay, and an immaterial amount of other personnel costs. All amounts were settled in 2023, and there were no restructuring charges during the six months ended June 30, 2024.
v3.24.2.u1
ACQUISITIONS
 6 Months Ended
Jun. 30, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]  
ACQUISITIONS
4. ACQUISITIONS
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 Accounting Standards Codification (“ASC”) Topic 805, Business Combinations, the acquisition was accounted for as a business combination
achieved in stages under the acquisition method. Accordingly, the cost method investment was remeasured to fair value as of the acquisition date. As the fair value of the cost method investment was equal to its carrying value, no gain or loss on remeasurement was recorded on the acquisition date.
The purchase consideration was allocated to the tangible and intangible assets acquired and liabilities assumed based on their estimated fair values as of the acquisition date with the excess recorded as goodwill. The goodwill balance was primarily attributed to the assembled workforce, market presence, synergies, and time-to-market advantages. Upon finalization of the fair value analysis of assets acquired and liabilities assumed, no measurement period adjustments were recorded.
The total consideration transferred in the acquisition was $96.8 million and consisted of the following (in thousands):
Cash$30,830 
Cash payable1,005 
Previously-held interest on acquisition date20,000 
Class A common stock of the Company44,995 
   Total purchase consideration$96,830 
Included in the purchase consideration was $6.0 million in cash and 119,991 shares of the Company’s Class A common stock that are subject to an indemnity holdback. The cash and shares subject to the indemnity holdback will be released 18 months after the closing date of the transaction.
The results of operations and the fair values of the assets acquired and liabilities assumed have been recorded in the Condensed Consolidated Financial Statements as of the date of acquisition. The following table summarizes the fair values of assets acquired and liabilities assumed as of the date of acquisition (in thousands):
Goodwill$65,764 
Intangible assets, net21,100 
Other assets and liabilities, net9,966 
Net assets acquired$96,830 
The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in thousands, except for years data):
Fair ValueUseful Life at Acquisition (in years)
Licenses$1,100 Indefinite
Customer relationships17,100 6
In-process research and development (“IPR&D”)2,900 N/A
Customer relationships are amortized on a straight-line basis over their respective useful lives to General and administrative expense. Management applied significant judgment in determining the fair value of intangible assets, which involved the use of estimates and assumptions with respect to forecasted revenues and expenses, and costs to recreate the IPR&D and obtain the licenses.
Total acquisition costs incurred were immaterial and were recorded in General and administrative expense in the Condensed Consolidated Statements of Operations during the year ended December 31, 2023.
The impact of this acquisition was not considered material to the Condensed Consolidated Financial Statements for the periods presented, and supplemental pro forma information has not been provided.
v3.24.2.u1
REVENUE
 6 Months Ended
Jun. 30, 2024
Revenue from Contract with Customer [Abstract]  
REVENUE
5. REVENUE
The following table presents revenue of the Company disaggregated by revenue source (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Net revenue
Transaction revenue
Consumer, net(1)
$664,772  $288,971 $1,599,984 $618,123 
Institutional, net63,624 17,061 149,016 39,372 
Other transaction revenue(1)
52,506 21,066 108,643 44,316 
Total transaction revenue780,902 327,098 1,857,643 701,811 
Subscription and services revenue
Stablecoin revenue240,436 151,394 437,753 350,292 
Blockchain rewards185,139 87,613 336,068 161,363 
Interest and finance fee income(2)
69,400 51,932 136,063 95,245 
Custodial fee revenue34,505 16,992 66,846 34,034 
Other subscription and services revenue(2)
69,560 27,471 133,246 56,153 
Total subscription and services revenue599,040 335,402 1,109,976 697,087 
Total net revenue1,379,942 662,500 2,967,619 1,398,898 
Other revenue
Corporate interest and other income69,686 45,411 119,579 81,542 
Total other revenue69,686 45,411 119,579 81,542 
Total revenue$1,449,628 $707,911 $3,087,198 $1,480,440 
__________________
(1)During the first quarter of 2024, the Company reclassified Base and payment-related revenue from Consumer, net to Other transaction revenue. Prior period amounts have been reclassified to conform to current period presentation.
(2)During the first quarter of 2024, the Company reclassified Prime Financing fee income from Other subscription and services revenue to Interest and finance fee income. Prior period amounts have been reclassified to conform to current period presentation.
Revenue by geographic location
Below is Total revenue disaggregated by geography based on domiciles of the customers (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
U.S.$1,232,616 $637,861 $2,586,066 $1,324,630 
International(1)
217,012 70,050 501,132 155,810 
     Total revenue$1,449,628 $707,911 $3,087,198 $1,480,440 
__________________
(1)No country accounted for more than 10% of Total revenue.
v3.24.2.u1
COLLATERALIZED ARRANGEMENTS AND FINANCING
 6 Months Ended
Jun. 30, 2024
Receivables [Abstract]  
COLLATERALIZED ARRANGEMENTS AND FINANCING
6. COLLATERALIZED ARRANGEMENTS AND FINANCING
Loans and related collateral
The Company may lend crypto assets borrowed, crypto assets held for investment or operations, corporate cash, and corporate USDC to eligible institutional customers through Prime Financing. Prime Financing lending arrangements may have open ended or fixed terms, with the exception of trade finance arrangements, which enable customers to instantly invest in crypto assets without pre-funding their trade. These arrangements are typically settled in one to three days. Crypto asset and fiat loans are recorded in
Loan receivables in the Condensed Consolidated Balance Sheets. USDC loaned to customers does not meet the derecognition criteria under ASC Topic 860, Transfers and Servicing (“ASC 860”), as the borrower has an obligation to return the same financial assets (USDC) back to the Company in order to release the collateral pledged for the loan. This constitutes a form of continuing involvement with the USDC transferred and therefore the Company maintains effective control over the USDC. USDC loaned remains recorded in USDC in the Condensed Consolidated Balance Sheets.
The following table summarizes the Company’s Prime Financing lending arrangements (in thousands):
June 30,December 31,
20242023
Loan receivables
Fiat trade finance receivables$85,701 $— 
Fiat loan receivables247,130 171,196 
Crypto asset loan receivables107,520 22,229 
Total loan receivables$440,351 $193,425 
Customer loans not meeting recognition criteria
USDC$271,945 $205,645 
Prime Financing loans are fully collateralized by a customer’s pledged crypto assets, USDC, or fiat, with collateral requirements ranging from 100% to 400% of the fair value of the loan.
The Company adheres to strict internal risk management and liquidation protocols for loan counterparty defaults, including restricting trading and withdrawals and liquidating assets in borrowers’ accounts as contractually permitted. If the value of the borrower’s eligible collateral falls below the required collateral requirement, the customer is obligated to deposit additional collateral up to the required collateral level. The Company continuously and systematically monitors the fair value of the related collateral assets pledged compared to the fair value of the related loan receivable, and requires additional collateral pursuant to the contractual terms of the loan agreements. Due to the collateral requirements the Company applies to its loans, the collateral maintenance process, and collateral being held on its own platform, the Company’s credit exposure is significantly limited and no allowance, write-offs, or recoveries were recorded against loan receivables during the periods presented. The Company would recognize credit losses on these loans if there were a collateral shortfall and it was not reasonably expected that the borrower would replenish such a shortfall.
The Company accounts for collateral it receives as follows:
•If the Company receives fiat collateral into a Coinbase controlled collateral wallet, the Company records the collateral in Cash and cash equivalents and a corresponding liability in Obligation to return collateral in the Condensed Consolidated Balance Sheets.
•If the Company receives USDC or crypto assets as collateral with contractual rights to sell, pledge, or rehypothecate the collateral, the Company records the collateral in USDC or Crypto assets held as collateral, respectively, and a corresponding liability in Obligation to return collateral in the Condensed Consolidated Balance Sheets.
•If the Company does not obtain control or have the right to sell, pledge, or rehypothecate customer collateral, the collateral is recorded in Safeguarding customer crypto assets and Safeguarding customer crypto liabilities if the collateral is USDC or crypto assets, or in Customer custodial funds and Customer custodial cash liabilities if the collateral is fiat, as the collateral is required to be held on the Company’s platform.
Obligation to return collateral in the form of crypto assets is accounted for as a hybrid instrument, with a liability host contract that contains an embedded derivative based on the changes in fair value of the underlying crypto asset. The gain or loss on remeasurement of the Obligation to return collateral (as well as of the Crypto assets held as collateral) is recorded in Transaction expense.
Crypto assets held as collateral and Obligation to return collateral consisted of the following (in thousands, except units):
June 30, 2024December 31, 2023
UnitsFair ValueUnitsFair Value
Crypto assets held as collateral
Bitcoin(1)
337 $21,119 — $— 
Total held as collateral$21,119 $— 
Obligation to return collateral
FiatN/A$251,052 N/A$1,063 
Bitcoin337 21,119 — — 
Total obligation to return collateral
$272,171 $1,063 
Customer collateral pledged, not recognized
nm$1,333,686 nm$712,644 
__________________
nm - not meaningful
(1)The cost basis of Bitcoin held as collateral as of June 30, 2024 was $23.8 million.
The following table summarizes the reconciliation of Crypto assets held as collateral (in thousands):
Three Months Ended
June 30, 2024		Six Months Ended
June 30, 2024
Beginning balance$106,610 $— 
Collateral received270,920 361,718 
Collateral returned(357,317)(372,691)
Gains3,606 34,792 
Losses(2,700)(2,700)
Ending balance$21,119 $21,119 
No cumulative realized gains or losses occurred during the periods presented as no Crypto assets held as collateral were sold or rehypothecated.
Borrowings and related collateral
To facilitate Prime Financing, the Company may borrow crypto assets from third parties and records the associated liabilities in Crypto asset borrowings in the Condensed 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 fair value of the underlying crypto asset. See Note 12. Derivatives for additional information. As of June 30, 2024 and December 31, 2023, the weighted average annual fees on these borrowings were 2.3% and 2.0%, respectively. Crypto asset borrowings that have not been loaned out are recorded in Crypto assets borrowed.
The following table summarizes the units, cost basis, and fair value of Crypto assets borrowed and the associated Crypto asset borrowings (in thousands, except units):
June 30, 2024December 31, 2023
UnitsCost BasisFair Value
Carrying Value(1)
Crypto assets borrowed
Bitcoin2,909 $122,740 $182,310 $36,368 
Ethereum5,707 15,505 19,587 3,720 
Solana48,375 3,850 7,081 3,516 
Other crypto assets(2)
nm15,136 14,145 1,608 
Total borrowed
$157,231 $223,123 $45,212 
Crypto asset borrowings
Bitcoin2,991 $126,694 $187,452 $50,679 
Ethereum7,226 19,511 24,801 7,059 
Solana48,375 3,850 7,081 3,513 
Other crypto assets(2)
nm19,230 18,140 1,729 
Total borrowings$169,285 $237,474 $62,980 
__________________
nm - not meaningful
(1)Recorded at fair value as of December 31, 2023.
(2)Includes various other crypto assets balances, none of which individually represented more than 5% of total Crypto assets borrowed or total Crypto asset borrowings, as applicable.
The following table summarizes the reconciliation of Crypto assets borrowed (in thousands):
Three Months Ended
June 30, 2024		Six Months Ended
June 30, 2024
Beginning balance$231,348 $45,212 
Additions:
Borrowings33,601 225,037 
Customer repayment of loan receivables(1)
426,631 711,885 
Dispositions:
Repayment of borrowings(22,834)(100,285)
Origination of loan receivables(1)
(410,928)(712,096)
Gains— 56,841 
Losses(34,695)(3,471)
Ending balance$223,123 $223,123 
__________________
(1)Represents activity that relates to loans originated from borrowed assets. See Note 8. Crypto Assets Held for Investment for the remaining Crypto asset loan receivables activity.
No cumulative realized gains or losses occurred during the periods presented as no Crypto assets borrowed were sold.
Under the terms of the Company’s borrowing arrangements, the Company may be required to maintain a collateral to borrowings ratio and pledge fiat, USDC, or crypto assets as collateral for crypto asset borrowings. If the lender has the right to use the Company’s collateral, or if the collateral is fiat, the Company records the collateral pledged as Assets pledged as collateral in Other current assets in the Condensed Consolidated Balance Sheets. USDC pledged as collateral to lenders, where the lender does not have the right to sell, pledge, or rehypothecate, is not recorded as Assets pledged as collateral as the
pledged USDC does not meet the derecognition criteria under ASC 860. This collateral continues to be recorded in USDC in the Condensed Consolidated Balance Sheets.
The Company’s corporate assets pledged as collateral against Crypto asset borrowings consisted of the following (in thousands, except units):
June 30, 2024December 31, 2023
UnitsFair ValueUnitsFair Value
Assets pledged as collateral
USDC
64,005,096 $64,005 51,879,705 $51,880 
FiatN/A— N/A1,191 
Total pledged as collateral
$64,005 $53,071 
Assets pledged as collateral not meeting derecognition criteria
USDC
195,372,009 $195,372 29,577,339 $29,577 
v3.24.2.u1
ACCOUNTS RECEIVABLE, NET
 6 Months Ended
Jun. 30, 2024
Receivables [Abstract]  
ACCOUNTS RECEIVABLE, NET
7. ACCOUNTS RECEIVABLE, NET
Accounts receivable, net consisted of the following (in thousands):
June 30,December 31,
20242023
Stablecoin revenue receivable$77,968 $57,885 
Customer fee revenue receivable34,577 23,603 
In-transit customer receivables52,436 42,562 
Other accounts receivable92,526 66,799 
Gross accounts receivable257,507 190,849 
Less: allowance for doubtful accounts(21,063)(22,559)
Total accounts receivable, net$236,444 $168,290 
v3.24.2.u1
CRYPTO ASSETS HELD FOR INVESTMENT
 6 Months Ended
Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
CRYPTO ASSETS HELD FOR INVESTMENT
8. CRYPTO ASSETS HELD FOR INVESTMENT
The following table summarizes the units, cost basis, and fair value of Crypto assets held for investment (in thousands, except units):
June 30, 2024December 31, 2023
UnitsCost BasisFair Value
Carrying Value(1)
Bitcoin8,999 $215,518 $563,972 $126,614 
Ethereum112,024 248,722 384,508 129,131 
Other crypto assets(2)
nm208,434 285,678 74,865 
Total held for investment$672,674 $1,234,158 $330,610 
__________________
nm - not meaningful
(1)Recorded at impaired cost as of December 31, 2023.
(2)Includes various other crypto assets balances, none of which individually represented more than 5% of total Crypto assets held for investment.
The following table summarizes the reconciliation of Crypto assets held for investment (in thousands):
Three Months Ended
June 30, 2024		Six Months Ended
June 30, 2024
Beginning balance$1,522,328 $330,610 
Cumulative-effect adjustment from adoption of ASU 2023-08— 717,373 
Additions(1)
11,577 15,109 
Sales(4,898)(64,625)
Transfers:
(To) from Crypto assets held for operations(1,671)300 
Origination of loan receivables(2)
(2,552)(125,633)
Customer repayment of loan receivables(2)
28,394 29,615 
Gain(3)
34,593 409,545 
Loss(3)
(353,613)(78,136)
Ending balance$1,234,158 $1,234,158 
__________________
(1)Additions represent purchases of, and staking rewards earned on, Crypto assets held for investment.
(2)Represents loans originated from Crypto assets held for investment. See Note 6. Collateralized Arrangements and Financing for the remaining Crypto asset loan receivables activity.
(3)Includes cumulative realized losses of $3.6 million during the three months ended June 30, 2024 and cumulative realized gains of $13.4 million during the six months ended June 30, 2024.
The Company has $130.4 million of crypto assets subject to selling restrictions recorded in Crypto assets held for investment. The selling restrictions are time-based and lift between 2024 and 2029.
v3.24.2.u1
CUSTOMER ASSETS AND LIABILITIES
 6 Months Ended
Jun. 30, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
CUSTOMER ASSETS AND LIABILITIES
9. CUSTOMER ASSETS AND LIABILITIES
The following table presents customers’ cash and safeguarded crypto positions (in thousands):
June 30,December 31,
20242023
Customer custodial funds$4,197,837 $4,570,845 
Safeguarding customer crypto assets269,198,067 192,583,060 
Total customer assets$273,395,904 $197,153,905 
Customer custodial cash liabilities$4,197,837 $4,570,845 
Safeguarding customer crypto liabilities269,198,067 192,583,060 
Total customer liabilities$273,395,904 $197,153,905 
Safeguarding customer crypto assets and liabilities represent the Company’s obligation to safeguard customer crypto assets. During the six months ended June 30, 2024 and 2023, no losses were incurred in connection with customer custodial funds or safeguarding customer crypto assets.
The following table sets forth the fair values of Safeguarding customer crypto assets as shown in the Condensed Consolidated Balance Sheets (in thousands, except percentages):
June 30, 2024December 31, 2023
Fair Value
Percentage of Total
Fair Value
Percentage of Total
Bitcoin$137,375,583 51 %$89,864,637 47 %
Ethereum58,764,013 22 %40,200,059 21 %
Solana17,213,869 6 %12,906,278 6 %
Other crypto assets(1)
55,844,602 21 %49,612,086 26 %
Total safeguarding customer crypto assets$269,198,067 100 %$192,583,060 100 %
__________________
(1)Includes various other crypto assets balances, none of which individually represented more than 5% of total Safeguarding customer crypto assets.
See Note 13. Fair Value Measurements for additional details regarding the Safeguarding customer crypto assets and Safeguarding customer crypto liabilities.
v3.24.2.u1
OTHER CONDENSED CONSOLIDATED BALANCE SHEETS DETAILS
 6 Months Ended
Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
OTHER CONDENSED CONSOLIDATED BALANCE SHEETS DETAILS
10. OTHER CONDENSED CONSOLIDATED BALANCE SHEETS DETAILS
The following tables present certain other details of the Condensed Consolidated Balance Sheets (in thousands):
Other current assets
June 30,December 31,
20242023
Crypto assets held for operations$84,232 $74,103 
Prepaid expenses78,275 79,552 
Assets pledged as collateral(1)
64,005 53,071 
Income tax receivable6,812 63,726 
Other19,902 16,191 
Total other current assets$253,226 $286,643 
_______________
(1)See Note 6. Collateralized Arrangements and Financing for additional details.
Crypto assets held for operations
The following table summarizes the units, cost basis, and fair value of Crypto assets held for operations (in thousands, except units):
June 30, 2024December 31, 2023
UnitsCost BasisFair Value
Carrying Value(1)
Bitcoin138 $8,278 $8,634 $7,243 
Ethereum9,330 28,478 32,025 15,775 
Solana107,228 15,615 15,700 10,275 
Other crypto assets(2)
nm38,461 27,873 40,810 
Total held for operations
$90,832 $84,232 $74,103 
__________________
nm - not meaningful
(1)Recorded at impaired cost as of December 31, 2023.
(2)Includes various other crypto asset balances, none of which individually represented more than 5% of total Crypto assets held for operations.
Other non-current assets
June 30,December 31,
20242023
Strategic investments
$340,608 $343,045 
Software and equipment, net189,533 192,550 
Intangible assets, net
70,649 86,422 
Income tax receivable55,968 — 
Other31,801 32,577 
Total other non-current assets$688,559 $654,594 

Accrued expenses and other current liabilities
June 30,December 31,
20242023
Accrued payroll and payroll related expenses$140,445 $224,237 
Other accrued expenses151,747 89,254 
Accounts payable37,443 39,294 
Income taxes payable14,777 17,366 
Other payables103,758 126,032 
Total accrued expenses and other current liabilities$448,170 $496,183 
v3.24.2.u1
LONG-TERM DEBT
 6 Months Ended
Jun. 30, 2024
Debt Disclosure [Abstract]  
LONG-TERM DEBT
11. LONG-TERM DEBT
The components of Long-term debt as of June 30, 2024 and December 31, 2023 were as follows (in thousands, except percentages):
Effective Interest RatePrincipal AmountUnamortized Debt Discount and Issuance CostsNet Carrying Amount
June 30, 2024
0.50% 2026 Convertible Notes due on June 1, 2026
0.98 %$1,273,013 $(12,403)$1,260,610 
3.38% 2028 Senior Notes due on October 1, 2028
3.57 %1,000,000 (7,397)992,603 
0.25% 2030 Convertible Notes due on April 1, 2030
0.55 %1,265,000 (21,134)1,243,866 
3.63% 2031 Senior Notes due on October 1, 2031
3.77 %737,457 (6,517)730,940 
Total$4,275,470 $(47,451)$4,228,019 
December 31, 2023
0.50% 2026 Convertible Notes due on June 1, 2026
0.98 %$1,273,013 $(15,378)$1,257,635 
3.38% 2028 Senior Notes due on October 1, 2028
3.57 %1,000,000 (8,218)991,782 
3.63% 2031 Senior Notes due on October 1, 2031
3.77 %737,457 (6,917)730,540 
Total$3,010,470 $(30,513)$2,979,957 
2030 Convertible Notes
In March 2024, the Company issued an aggregate principal amount of $1.3 billion of convertible senior notes due 2030 (the “2030 Convertible Notes”), which included the full exercise by the initial purchasers of their option to purchase up to an additional $165.0 million aggregate principal amount of the 2030 Convertible Notes, pursuant to an indenture, dated March 18, 2024 between the Company and U.S Bank Trust Company, National Association, as trustee (the “Indenture”). The 2030 Convertible Notes were offered and sold in a private offering to qualified institutional buyers pursuant to Rule 144A under the Securities Act.
The 2030 Convertible Notes are senior unsecured obligations of the Company and accrue interest of 0.25% per year payable semi-annually in arrears on April 1 and October 1 of each year, beginning on October 1, 2024. The 2030 Convertible Notes mature on April 1, 2030, unless earlier repurchased, redeemed or converted. The proceeds received of $1.2 billion, were net of a 1.5% original issue discount.
The 2030 Convertible Notes will be convertible into cash, shares of the Company’s Class A common stock, or a combination thereof, at the Company’s election at an initial conversion rate of 2.9981 shares of the Company’s Class A common stock per $1,000 principal amount of notes. This is equivalent to an initial conversion price of approximately $333.54 per share of the Company’s Class A common stock. The conversion rate and conversion price are subject to customary adjustments under certain circumstances in accordance with the terms of the Indenture.
The 2030 Convertible Notes will be convertible at the option of the holders after the calendar quarter ending on June 30, 2024, if the last reported sale price per share of Class A common stock exceeds 130% of the conversion price for each of at least 20 trading days, during the 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter. Upon conversion, the Company may satisfy its conversion obligation by paying or delivering, as applicable, cash, shares of the Company’s Class A common stock or a combination of cash and shares of the Company’s Class A common stock, at the Company’s election, based on the applicable conversion rate. In addition, if certain corporate events that constitute a make-whole fundamental change (as defined in the Indenture) occur, then the conversion rate will, in certain circumstances, be increased for a specified period of time. Additionally in the event of a corporate event constituting a fundamental change (as defined in the Indenture), holders of the 2030 Convertible Notes may require the Company to repurchase all or a portion of their 2030 Convertible Notes at a repurchase price equal to 100% of the principal amount of the 2030 Convertible Notes being repurchased, plus accrued and unpaid special interest or additional interest, if any, to, but excluding, the date of the fundamental change repurchase.
The Company accounted for the 2030 Convertible Notes wholly as debt because (1) the conversion features do not require bifurcation as a derivative under ASC 815 and (2) the 2030 Convertible Notes were not issued at a substantial premium.
Debt issuance costs related to the issuance of the 2030 Convertible Notes recognized were $3.2 million, and include commissions payable to the underwriters and third-party offering costs. As of June 30, 2024, the outstanding aggregate principal balance of the 2030 Convertible Notes and the related unamortized discounts were $1.3 billion and $21.1 million, respectively.
Capped calls
On May 18, 2021, in connection with the pricing of the convertible senior notes due in 2026 (the “2026 Convertible Notes”), on March 13, 2024, in connection with the pricing of the 2030 Convertible Notes, and on March 14, 2024, in connection with the full exercise by the initial purchasers of their option to purchase additional 2030 Convertible Notes, the Company entered into privately negotiated capped call transactions (the “2026 Capped Calls” and “2030 Capped Calls,” respectively, and “the Capped Calls” collectively) with certain financial institutions (the “2026 Option Counterparties” and “2030 Option Counterparties,” respectively, and the “Option Counterparties” collectively) at a cost of $90.1 million and $104.1 million, respectively, in each case in exchange for the right to receive a predetermined amount of cash, shares of the Company’s Class A common stock, or a combination thereof, at the Company’s election. The Capped Calls cover, subject to customary adjustments, the number of shares of the Company’s Class A common stock initially underlying each of the 2026 Convertible Notes and 2030 Convertible Notes (collectively, the “Convertible Notes”), as applicable. The Capped Calls allow the Company to hedge the economic effect of the conversion options embedded in the Convertible Notes and purchase shares of its own Class A common stock at a specified strike price. By entering into the Capped Calls, the Company expects to reduce the potential dilution to its Class A common stock (or, in the event a conversion of the Convertible Notes is settled in cash, to reduce its cash payment obligation) in the event that at the time of conversion of the Convertible Notes its Class A common stock price exceeds the conversion price of the Convertible Notes. The 2026 Capped Calls have an initial strike price of approximately $370.45 per share of Class A common stock (the “2026 Initial Strike Price”) and an initial cap price of approximately $478.00 per share of Class A common stock (the “2026 Initial Cap Price”). The 2030 Capped Calls have an initial strike price of approximately $333.54 per share of Class A common stock (the “2030 Initial Strike Price” and, together with the 2026 Initial Strike Price, the “Initial Strike Prices”) and an initial cap price of approximately $503.46 per share of Class A common stock (the “2030 Initial Cap Price” and, together with the 2026 Initial Cap Price, the “Initial Cap Prices”). Upon expiration of the agreements underlying the Capped Calls, the Capped Calls will be automatically exercised. If the closing market price of the Class A common stock is above the applicable Initial Cap Price, the initial investments will be returned with a premium in either cash or shares at the Company’s election. If the closing market price of the Class A common stock is at or below the applicable Initial Strike Price, the Company will receive the number of shares specified in the agreements.
Upon certain extraordinary events, nationalization, insolvency or delisting event, or additional disruption events, the Capped Calls are contractually structured to terminate. The Company has the contractual right to terminate the Capped Calls upon repurchase, redemption or conversion (in the case of conversion, prior to December 1, 2025 or October 1, 2029, for the 2026 Capped Calls and 2030 Capped Calls, respectively) of the underlying Convertible Notes, in certain circumstances.
The Capped Calls also include early termination provisions based on beneficial ownership positions of the counterparties. That is, if at any time the counterparty’s holdings exceed 8% beneficial ownership of the Company (as defined under Section 13 of the Exchange Act) and the counterparty is unable, after commercially reasonable efforts, to effect a transfer or assignment of all or a portion of the transaction such that an excess ownership position no longer exists, the counterparty may early terminate a portion of the Capped Calls, in which case the Company can settle in cash or shares of its Class A common stock.
v3.24.2.u1
DERIVATIVES
 6 Months Ended
Jun. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
DERIVATIVES
12. DERIVATIVES
During the periods presented, the Company’s derivatives were all embedded forward contracts to receive or deliver a fixed amount of crypto assets in the future.
Impact of derivatives on the Condensed Consolidated Balance Sheets
The following table summarizes the balance sheet impact of derivative instruments outstanding as of June 30, 2024 and December 31, 2023 as measured in U.S. dollar equivalents (in thousands), none of which were designated as hedging instruments at June 30, 2024:
Derivative
Condensed Consolidated Balance Sheets LocationNotionalFair Value, NetTotal
June 30, 2024
Accounts receivable, net(1)
$28,057 $15,278 $43,335 
Crypto asset borrowings169,285 68,189 237,474 
Obligation to return collateral(1)
23,819 (2,700)21,119 
Accrued expenses and other current liabilities(1)
24,885 2,987 27,872 
December 31, 2023
Designated as hedging instruments
Crypto asset borrowings$31,666 $13,547 $45,213 
Not designated as hedging instruments
Accounts receivable, net(1)
16,335 28,065 44,400 
Crypto asset borrowings12,503 5,264 17,767 
Accrued expenses and other current liabilities(1)
20,092 590 20,682 
__________________
(1)Represents the portion of the Condensed Consolidated Balance Sheet line item that is denominated in crypto assets.
The following table summarizes information on derivative assets and liabilities that are recorded in the Condensed Consolidated Balance Sheets, by accounting designation (in thousands):
Gross Derivative AssetsGross Derivative Liabilities
Not Designated as HedgesDesignated as HedgesTotal Derivative AssetsNot Designated as HedgesDesignated as HedgesTotal Derivative Liabilities
June 30, 2024
Accounts receivable, net$15,488 $— $15,488 $210 $— $210 
Crypto asset borrowings6,519 — 6,519 74,708 — 74,708 
Obligation to return collateral2,700 — 2,700 — — — 
Accrued expenses and other current liabilities1,865 — 1,865 4,852 — 4,852 
Total fair value of derivative assets and liabilities$26,572 $— $26,572 $79,770 $— $79,770 
December 31, 2023
Accounts receivable, net$28,065 $— $28,065 $— $— $— 
Crypto asset borrowings26 (25)1 5,290 13,522 18,812 
Accrued expenses and other current liabilities2,511 — 2,511 3,101 — 3,101 
Total fair value of derivative assets and liabilities$30,602 $(25)$30,577 $8,391 $13,522 $21,913 
Impact of derivatives on the Condensed Consolidated Statements of Operations
Gains (losses) on derivative instruments recorded in the Condensed Consolidated Statements of Operations were as follows (in thousands):
DerivativesHedged Items
Income Statement Impact(4)
DerivativesHedged ItemsIncome Statement Impact
Three Months Ended June 30, 2024Three Months Ended June 30, 2023
Designated as hedging instruments
Crypto asset futures(1)
$— $— $— $5 $— $5 
Crypto asset borrowings(1)
— — — 3,159 333 3,492 
Not designated as hedging instruments
Accounts receivable, net(2)
(25,421)— (25,421)4,156 — 4,156 
Crypto assets pledged as collateral(1)
— — — (196)— (196)
Crypto asset borrowings(3)
46,099 — 46,099 196 — 196 
Obligation to return collateral(3)
(906)— (906)— — — 
Accrued expenses and other current liabilities(1)
(1,299)— (1,299)405 — 405 
Other(1)
13 — 13 12 — 12 
Total$18,486 $— $18,486 $7,737 $333 $8,070 

Six Months Ended June 30, 2024Six Months Ended June 30, 2023
Designated as hedging instruments
Crypto asset futures(1)
$— $— $— $(43,111)$48,491 $5,380 
Crypto asset borrowings(1)
— — — (88,555)48,933 (39,622)
Not designated as hedging instruments
Accounts receivable, net(2)
(11,626)— (11,626)47,080 — 47,080 
Crypto assets pledged as collateral(1)
— — — (196)— (196)
Crypto asset borrowings(3)
(49,815)— (49,815)196 — 196 
Obligation to return collateral(3)
(32,092)— (32,092)— — — 
Accrued expenses and other current liabilities(1)
(3,020)— (3,020)844 — 844 
Other(1)
13 — 13 (201)— (201)
Total$(96,540)$— $(96,540)$(83,943)$97,424 $13,481 
__________________
(1)Changes in fair value are recorded in Other operating expense (income), net in the Condensed Consolidated Statements of Operations.
(2)Changes in fair value are recorded in Other expense (income), net or Other operating expense (income), net in the Condensed Consolidated Statements of Operations depending on the nature of the receivable.
(3)As of January 1, 2024, the date of the Company’s adoption of ASU 2023-08, changes in fair value are recorded in Transaction expense in the Condensed Consolidated Statements of Operations. Prior to adoption of ASU 2023-08, changes in fair value were recorded in Other operating expense (income), net in the Condensed Consolidated Statements of Operations.
(4)Though the Company has dedesignated crypto assets borrowed that previously qualified as fair value hedges, the impact of derivatives is naturally offset, at least in part, in the Condensed Consolidated Statements of Operations by the impact of associated naturally offsetting positions.
v3.24.2.u1
FAIR VALUE MEASUREMENTS
 6 Months Ended
Jun. 30, 2024
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS
13. 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):
June 30, 2024December 31, 2023
Level 1Level 2Level 1Level 2
Assets
Cash equivalents(1)
$4,068,451 $— $3,682,917 $— 
Restricted cash equivalents(2)
16,590 — — — 
Customer custodial funds(3)
3,698,168 — 3,301,029 — 
Safeguarding customer crypto assets— 269,198,067 — 192,583,060 
Crypto asset loan receivables— 107,520 — 22,229 
Crypto assets held as collateral21,119 — — — 
Crypto assets borrowed(4)
223,123 — 45,212 — 
Crypto assets held for operations84,232 — — — 
Crypto assets held for investment1,234,158 — — — 
Derivative assets(5)
— 26,572 — 30,577 
Total assets$9,345,841 $269,332,159 $7,029,158 $192,635,866 
Liabilities
Safeguarding customer crypto liabilities$— $269,198,067 $— $192,583,060 
Derivative liabilities(5)
— 79,770 — 21,913 
Total liabilities$— $269,277,837 $— $192,604,973 
__________________
(1)Represents cash equivalents, which comprise money market funds and government bonds. Excludes cash, comprising $3.1 billion of corporate cash held in deposit at banks and $97.1 million held at venues as of June 30, 2024 and $1.4 billion of corporate cash held in deposit at banks and $88.8 million held at venues as of December 31, 2023.
(2)Represents restricted cash equivalents, which comprise money market funds. Excludes restricted cash, comprising an immaterial amount held in deposit at banks and held at venues as of June 30, 2024.
(3)Represents customer custodial cash equivalents, which comprise money market funds. Excludes customer custodial cash, comprising $499.7 million and $1.3 billion held in deposit at financial institutions as of June 30, 2024 and December 31, 2023, respectively.
(4)December 31, 2023 amount represents crypto assets designated as hedged items in fair value hedges.
(5)See Note 12. Derivatives for additional details.
The Company has valued all Level 2 assets and liabilities using quoted market prices for the underlying crypto assets.
Assets and liabilities measured and recorded at fair value on a non-recurring basis
The Company’s non-financial assets, such as software and equipment, goodwill, intangible assets, and crypto assets held prior to the adoption of ASU 2023-08, are adjusted to fair value when an impairment charge is recognized.
The Company’s strategic investments are recorded at cost and adjusted to fair value for observable transactions for same or similar investments of the same issuer or for impairment, on a non-recurring basis. Fair value measurements for strategic investments are based predominantly on Level 3 inputs to an Option-Pricing Model that uses publicly available market data of comparable companies and other unobservable inputs including expected volatility, expected time to liquidity, adjustments for other company-specific developments, and the rights and obligations of the securities the Company holds.
The changes in the carrying value of strategic investments accounted for under the measurement alternative are presented below (in thousands):
Six Months Ended June 30,
20242023
Beginning balance$330,346 $315,285 
Net additions(1)
11,889 4,202 
Upward adjustments3,504 62 
Previously held interest in ORDAM (see Note 4)— (20,000)
Impairments and downward adjustments(17,504)(7,771)
Ending balance$328,235 $291,778 
__________________
(1)Net additions include additions from purchases and reductions due to exits of strategic investments.
Upward adjustments, impairments, and downward adjustments from remeasurement of investments are recorded in Other expense (income), net in the Condensed Consolidated Statements of Operations. As of June 30, 2024, cumulative upward adjustments for investments held as of that date were $8.4 million and cumulative impairments and downward adjustments were $144.2 million. As of December 31, 2023, cumulative upward adjustments for investments held as of that date were $4.9 million and cumulative impairments and downward adjustments were $127.0 million.
Assets and liabilities not measured and recorded at fair value
Certain of the Company’s financial instruments, including cash, restricted cash, certain customer custodial funds and related liabilities, USDC, fiat accounts and loan receivables, fiat collateral, and fiat accounts payable are not measured and recorded 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 valuation inputs, except for fiat accounts receivable, fiat loan receivables, and fiat accounts payable which would be based on Level 2 valuation inputs.
The Company’s long-term debt is not measured and recorded at fair value. As of June 30, 2024, the estimated fair value of the 2026 Convertible Notes, 2030 Convertible Notes, and the 2028 and 2031 Senior Notes were $1.3 billion, $1.2 billion, and $1.4 billion, respectively. These are based on quoted prices for these instruments in markets that are not active and other market observable inputs, which are considered Level 2 valuation inputs.
v3.24.2.u1
STOCK-BASED COMPENSATION
 6 Months Ended
Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION
14. STOCK-BASED COMPENSATION
Stock options
A summary of stock options activity is as follows (in thousands, except per share and years data):
Weighted Average
Options OutstandingExercise Price Per ShareRemaining Contractual Life (Years)Aggregate Intrinsic Value
Balance at January 1, 202428,697 $25.01 6.1$4,295,055 
Exercised(3,515)19.59 
Forfeited and cancelled(52)49.66 
Balance at June 30, 202425,130 $25.72 5.7$4,938,285 
Exercisable at June 30, 202418,996 $26.45 5.6$3,719,034 
Vested and expected to vest at June 30, 202418,997 $26.45 5.6$3,719,310 
As of June 30, 2024, there was total unrecognized compensation cost of $42.8 million related to unvested stock options. These costs are expected to be recognized over a weighted-average period of approximately 2.4 years.
Restricted stock units
A summary of restricted stock units (“RSUs”) activity is as follows (in thousands, except per share data):
Number of SharesWeighted-Average Grant Date Fair Value Per Share
Balance at January 1, 20243,016 $108.07 
Granted5,239 144.35 
Vested(3,143)131.77 
Forfeited and cancelled(442)128.64 
Balance at June 30, 20244,670 $130.88 
As of June 30, 2024, there was total unrecognized compensation cost of $568.2 million related to unvested RSUs. These costs are expected to be recognized over a weighted-average period of approximately 1.1 years.
Performance restricted stock units
A summary of performance restricted stock units (“PRSUs”) activity is as follows (in thousands, except per share data):
Number of SharesWeighted-Average Grant Date Fair Value Per Share
Balance at January 1, 2024804 $55.42 
Vested(80)55.42 
Balance at June 30, 2024724 $55.42 
As of June 30, 2024, there was total unrecognized compensation cost of $10.9 million related to unvested PRSUs. These costs are expected to be recognized over a weighted-average period of approximately 1.4 years.
Restricted common stock
A summary of restricted Class A common stock activity is as follows (in thousands, except per share data):
Number of SharesWeighted-Average Grant Date Fair Value Per Share
Balance at January 1, 2024543 $114.22 
Vested(196)136.45 
Forfeited and cancelled(4)267.48 
Balance at June 30, 2024343 $99.74 
As of June 30, 2024, there was total unrecognized compensation cost of $18.6 million related to unvested restricted Class A common stock. These costs are expected to be recognized over a weighted-average period of approximately 1.2 years.
Stock-based compensation expense
The effects of stock-based compensation expense in the Condensed Consolidated Statements of Operations are as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Technology and development$133,622 $123,469 $273,452 $246,165 
Sales and marketing16,691 14,930 33,314 29,139 
General and administrative67,621 61,373 135,672 123,328 
Restructuring— — — 84,042 
Total$217,934 $199,772 $442,438 $482,674 
During the three and six months ended June 30, 2024, $12.4 million and $23.5 million of stock-based compensation expense was recorded in capitalized software, respectively. During the three and six months ended June 30, 2023, $14.9 million and $29.0 million of stock-based compensation expense was recorded in capitalized software, respectively. Capitalized software is included within Software and equipment, net in Other non-current assets in the Condensed Consolidated Balance Sheets.
v3.24.2.u1
OTHER EXPENSE (INCOME), NET
 6 Months Ended
Jun. 30, 2024
Other Income and Expenses [Abstract]  
OTHER EXPENSE (INCOME), NET
15. OTHER EXPENSE (INCOME), NET
Other expense (income), net consisted of the following (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Strategic investment losses, net$13,814 $3,839 $14,663 $10,158 
Losses on other financial instruments, net24,584 — 11,398 — 
Losses on crypto asset loan receivables(1)
34,010 — 8,484 — 
Foreign exchange (gains) losses, net(321)(3,344)1,330 10,534 
Other(8,260)(17,059)(17,653)(16,991)
Total other expense (income), net$63,827 $(16,564)$18,222 $3,701 
__________________
(1)Represents fair value remeasurement losses on crypto asset denominated Loan receivables on crypto assets lent from the Company’s Crypto assets held for investment portfolio. See Note 6. Collateralized Arrangements and Financing for additional details.
v3.24.2.u1
INCOME TAXES
 6 Months Ended
Jun. 30, 2024
Income Tax Disclosure [Abstract]  
INCOME TAXES
16. INCOME TAXES
For the six months ended June 30, 2024, the Company calculated the tax provision using a discrete effective tax rate method. Historically, the tax provision was calculated for interim periods using an estimated annual effective tax rate (“ETR”), applied to year-to-date ordinary income. The Company’s estimated annual effective tax rate can fluctuate significantly based on the amount of estimated pretax income or loss in the period. For example, when pretax income is lower, the effect of non-deductible expenses or other discrete items will have a significant impact on the effective tax rate. Therefore, the Company determined the discrete effective tax rate method is the appropriate method for calculating the interim tax provision.
The Company’s effective tax rate for the three months ended June 30, 2024 and 2023 was 160.0% and (23.8)%, respectively. The effective tax rate of 160.0% for the three months ended June 30, 2024 was higher than the U.S. statutory rate of 21.0% primarily due to the Company’s deductible stock-based compensation and research and development credits. The Company’s ETR for the six months ended June 30, 2024 and 2023 was 12.0% and 27.9%, respectively. The ETR of 12.0% for the six months ended June 30, 2024 was lower than the U.S. statutory rate of 21.0%, primarily due to the Company’s deductible stock-based compensation and research and development credits.
As of June 30, 2024, the Company had a net deferred tax asset balance of $1.0 billion, compared to $1.3 billion as of December 31, 2023. The decrease resulted from the deferred tax liability of $177.9 million established upon the Company’s adoption of ASU 2023-08 and the deferred tax provision of $84.0 million recorded on pretax earnings and other comprehensive income (loss) during the six months ended June 30, 2024. As of each reporting date, management considers new evidence, both positive and negative, that could affect its view of the future realization of deferred tax assets. Management determined that there is sufficient positive evidence to conclude that it is more likely than not that the Company’s net deferred tax asset will be fully realized.
v3.24.2.u1
NET INCOME (LOSS) PER SHARE
 6 Months Ended
Jun. 30, 2024
Earnings Per Share [Abstract]  
NET INCOME (LOSS) PER SHARE
17. NET INCOME (LOSS) PER SHARE
The computation of Net income (loss) per share, including the weighted average shares outstanding used in the computation (“WASO”), is as follows (in thousands, except per share amounts):
Three Months Ended June 30,Six Months Ended
June 30,
2024202320242023
Basic Net income (loss) per share:
Numerator
Net income (loss)$36,150 $(97,405)$1,212,395 $(176,301)
Less: Income allocated to participating shares(23)— (784)— 
Net income (loss) attributable to common stockholders, basic$36,127 $(97,405)$1,211,611 $(176,301)
Denominator
WASO - basic246,298 234,614 244,546 233,060 
Net income (loss) per share attributable to common stockholders, basic$0.15 $(0.42)$4.95 $(0.76)
Diluted Net income (loss) per share:
Numerator
Net income (loss)$36,150 $(97,405)$1,212,395 $(176,301)
Add: Interest on the Convertible Notes, net of tax— — 6,145 — 
Less: Income allocated to participating shares(22)— (711)— 
Less: Fair value gain on contingent consideration arrangement, net of tax— (196)— (196)
Net income (loss) attributable to common stockholders, diluted$36,128 $(97,601)$1,217,829 $(176,497)
Denominator
WASO - basic246,298 234,614 244,546 233,060 
Weighted-average effect of potentially dilutive shares:
Stock options17,254 — 17,894 — 
RSUs2,672 — 2,250 — 
PRSUs350 — 343 — 
Restricted common stock257 — 283 — 
Convertible Notes— — 5,687 — 
Contingent consideration— 27 — 27 
WASO - diluted266,831 234,641 271,003 233,087 
Net income (loss) per share attributable to common stockholders, diluted$0.14 $(0.42)$4.49 $(0.76)
Certain shares of the Company’s restricted Class A common stock granted as consideration in past acquisitions are participating securities. These participating securities do not contractually require the holders of such shares to participate in the Company’s losses.
The rights, including the liquidation and dividend rights, of the holders of Class A 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 and Class B common stock on an individual or combined basis.
The following potentially dilutive shares were not included in the calculation of diluted shares outstanding as the effect would have been anti-dilutive (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Stock-based compensation awards(1)
7,807 41,621 7,807 41,621 
Convertible Notes7,229 3,706 — 3,706 
Total15,036 45,327 7,807 45,327 
__________________
(1)Includes shares under the ESPP.
v3.24.2.u1
COMMITMENTS AND CONTINGENCIES
 6 Months Ended
Jun. 30, 2024
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES
18. 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 and certain of their advisors; each underwriter, if any; and each person who controls each stockholder or underwriter, against any damages incurred in connection with investigating or defending any claim or proceeding arising as a result of such registration from which damages may result. The Company will reimburse each such party for any legal and any other expenses reasonably incurred, provided that the Company will not be liable in any such case to the extent the damages arise out of or are based upon any actions or omissions made in reliance upon and in conformity with written information furnished by or on behalf of such stockholder or underwriter and stated to be specifically for use therein.
The Company also has indemnity agreements with certain officers and directors of the Company pursuant to which the Company must indemnify the officer or director against all expenses, judgments, fines, and amounts paid in settlement reasonably incurred in connection with a third party proceeding, if the indemnitee acted in good faith and in a manner reasonably believed to be in or not opposed to the best interests of the Company, and in the case of a criminal proceeding, had no reasonable cause to believe the indemnitee’s conduct was unlawful.
It is not possible to determine the maximum potential exposure under these indemnification agreements: (i) because the facts and circumstances involved in each claim are unique and the Company cannot predict the number or nature of claims that may be made; (ii) due to the unique facts and circumstances involved in each particular agreement; and (iii) due to the requirement for a registration of the Company’s securities before any of the indemnification obligations contemplated in the IRA become effective.
The Company has also provided indemnities or similar commitments on standard commercial terms in the ordinary course of business.
Legal and regulatory proceedings
The Company is subject to various litigation, regulatory investigations, and other legal proceedings that arise in the ordinary course of its business. The Company is also subject to regulatory oversight by numerous regulatory and other governmental agencies. The Company reviews its lawsuits, regulatory investigations, and other legal proceedings on an ongoing basis and provides disclosure and records loss contingencies in accordance with the loss contingencies accounting guidance. In accordance with such guidance, the Company establishes accruals for such matters when potential losses become probable and can be reasonably estimated. If the Company determines that a loss is reasonably possible and the loss or range of loss can be estimated, the Company discloses the possible loss in the Condensed Consolidated Financial Statements.
In July and August 2021, three purported securities class actions were filed in the U.S. District Court for the Northern District of California against the Company, its directors, certain of its officers and employees, and certain venture capital and investment firms. The complaints alleged violations of Sections 11, 12(a)(2) and 15 of the Securities Act, in connection with the registration statement and prospectus filed in connection with the Direct Listing. In November 2021, these actions were consolidated and recaptioned as In re Coinbase Global Securities Litigation, and an amended complaint was filed. The plaintiff seeks, among other relief, unspecified compensatory damages, attorneys’ fees, and costs. The Company disputes the claims in these cases and is vigorously defending against them. Based on the preliminary nature of the proceedings in these cases, the outcome of these matters remain uncertain and the Company cannot estimate the potential impact, if any, on its business or financial statements at this time. The Company has subsequently received, and expects to receive in the future, similar shareholder claims.
In October 2021, a purported class action captioned Underwood et al. v. Coinbase Global, Inc., was filed in the U.S. District Court for the Southern District of New York (the “District Court”) against the Company alleging claims under Sections 5, 15(a)(1) and 29(b) of the Exchange Act, and violations of certain California and Florida state statutes. On March 11, 2022, plaintiffs filed an amended complaint adding Coinbase, Inc. and Brian Armstrong as defendants and adding causes of action, including alleging claims under Sections 5, 12(a)(1) and 15 of the Securities Act and violations of certain New Jersey state statutes. Among other relief requested, the plaintiffs sought injunctive relief, unspecified damages, attorneys’ fees and costs. On February 1, 2023, the District Court dismissed all federal claims (with prejudice) and state law claims (without prejudice) against Coinbase Global, Inc., Coinbase, Inc. and Brian Armstrong. Subsequently, on February 9, 2023, the plaintiffs appealed that ruling to the U.S. Court of Appeals for the Second Circuit (the “Court of Appeals”), and the parties completed briefing the appeal on September 13, 2023. Oral argument took place on February 1, 2024 and on April 5, 2024, the Court of Appeals issued a Summary Order affirming the District Court’s dismissal order with respect to the claims alleging violations of the Exchange Act, and reversing the District Court’s dismissal order with respect to the claims alleging violations of the Securities Act and violations of the state statutes. On June 27, 2024, defendants filed an answer to the amended complaint, and on July 29, 2024, the defendants filed a Motion for Judgment on the Pleadings requesting the District Court dismiss the remaining claims. 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 completed an agreed additional investment of $50.0 million in its compliance function as of the quarter ended June 30, 2024.
In April 2022, a dissenting stockholder to the Company’s acquisition of FairXchange, Inc. (“FairX”) filed a Verified Petition for Appraisal of Stock in the Court of Chancery of the State of Delaware seeking, among other relief, an appraisal of the fair value of their common and preferred shares of FairX stock. Petitioners contend that the valuation of FairX was higher than the valuation ascribed by the parties at the time of the transaction. The case is captioned Hyde Park Venture Partners Fund III, L.P. et al. v. FairXchange, LLC, et al. Trial took place in November 2023 and post-trial briefing and argument was completed on March 5, 2024 and March 22, 2024, respectively. A settlement offer was made and rejected in November 2023, and another settlement offer was made and rejected in May 2024. On July 30, 2024, the Court of Chancery of the State of Delaware issued an opinion determining the fair value of FairX to be the deal price ascribed by the parties at the time of the transaction, plus both pre- and post-judgment interest. The Court of Chancery has directed the parties to prepare and submit a proposed final judgment, and the appeal period will expire 30 days after final judgment is entered. Should either party appeal, the Company cannot reasonably estimate the potential impact beyond the amounts recorded.
In June 2023, the SEC filed a complaint in the District Court against the Company and Coinbase, Inc. alleging that Coinbase, Inc. has acted as an unregistered securities exchange, broker, and clearing agency in violation of Sections 5, 15(a) and 17A(b) of the Exchange Act and that, through its staking program, Coinbase, Inc. has offered and sold securities without registering its offers and sales in violation of Sections 5(a) and 5(c) of the Securities Act. The SEC has also alleged that the Company is liable for the alleged violations as an alleged control person of Coinbase, Inc. The case is captioned SEC v. Coinbase, Inc. et al. The SEC seeks, among other relief, injunctive relief, disgorgement and civil money penalties. The Company and Coinbase, Inc. filed an answer to the SEC complaint in June 2023, dispute the claims in this case, and intend to vigorously defend against them. On August 4, 2023, the Company and Coinbase, Inc. filed a motion for judgment on the pleadings. The SEC filed its response on October 3, 2023 and the Company and Coinbase, Inc. filed their reply on October 24, 2023. Oral argument took place on January 17, 2024. On March 27, 2024, the District Court denied in part the Company and Coinbase, Inc.’s motion for judgment on the pleadings with respect to the SEC’s claims that Coinbase, Inc. has operated as an unregistered securities exchange, broker, and clearing agency and has engaged in an unregistered offer and sale of securities through the Company’s staking program. The District Court dismissed the SEC’s claim that Coinbase, Inc. acts as an unregistered broker through its wallet service. Subsequently, on April 12, 2024, the Company and Coinbase, Inc. filed a motion with the District Court seeking certification of an interlocutory appeal to the Court of Appeals. Based on the preliminary nature of the proceedings in this case, the outcome of this matter remains uncertain and the Company cannot estimate the potential impact, if any, on its business or financial statements at this time. An adverse resolution of the SEC’s lawsuit could have a material impact on the Company’s business and financial statements.
In June 2023, the Company and Coinbase, Inc. were issued notices, show-cause orders, and cease-and-desist letters, and became the subject of various legal actions initiated by U.S. state securities regulators in the states of Alabama, California, Illinois, Kentucky, Maryland, New Jersey, South Carolina, Vermont, Washington and Wisconsin alleging violations of state securities laws with respect to staking services provided by Coinbase, Inc. In July 2023, the Company and Coinbase, Inc. entered into agreements with state securities regulators in California, New Jersey, South Carolina and Wisconsin, pursuant to which customers in those states will no longer be able to stake new funds, in each case pending final adjudication of the matters. In October 2023, the Company and Coinbase, Inc. entered into
a similar agreement with the Maryland state securities regulator. The Company and Coinbase, Inc. dispute the claims of the state securities regulators and intend to vigorously defend against them. Based on the preliminary nature of these actions, the final outcome of these matters remains uncertain and the Company cannot estimate the potential impact on its business or financial statements at this time. An adverse resolution could have a material impact on the Company’s business and financial statements.
The Company has, from time to time, received investigative subpoenas and requests from regulators for documents and information about certain customer programs, operations, and existing and intended future products, including the Company’s processes for listing assets, the classification of certain listed assets, its staking programs, and its stablecoin and yield-generating products.
Except as otherwise disclosed, the Company believes the ultimate resolution of existing legal and regulatory investigation matters will not have a material adverse effect on the financial condition, results of operations, or cash flows of the Company. However, in light of the uncertainties inherent in these matters, it is possible that the ultimate resolution of one or more of these matters may have a material adverse effect on the Company’s results of operations for a particular period, and future changes in circumstances or additional information could result in additional accruals or resolution in excess of established accruals, which could adversely affect the Company’s results of operations, potentially materially.
Tax regulation
Current promulgated tax rules related to crypto assets are unclear and require significant judgments to be made in interpretation of the law, including but not limited to the areas of income tax, information reporting, transaction level taxes and the withholding of tax at source. Additional legislation or guidance may be issued by U.S. and non-U.S. governing bodies that may differ significantly from the Company's practices or interpretation of the law, which could have unforeseen effects on the Company’s financial condition and results of operations, and accordingly, the related impact on the Company’s financial condition and results of operations is not estimable.
v3.24.2.u1
RELATED PARTY TRANSACTIONS
 6 Months Ended
Jun. 30, 2024
Related Party Transactions [Abstract]  
RELATED PARTY TRANSACTIONS
19. RELATED PARTY TRANSACTIONS
Revenue and accounts receivable
Certain of the Company’s directors, executive officers, and principal owners, including immediate family members, are users of the Company’s platform. The Company recognized revenue from related party customers of $6.7 million and $4.0 million for the three months ended June 30, 2024 and 2023, respectively, and $13.6 million and $7.1 million for the six months ended June 30, 2024 and 2023, respectively. As of June 30, 2024 and December 31, 2023, accounts receivable from related party customers were $3.8 million and $3.4 million, respectively.
Customer assets and liabilities
Safeguarding customer crypto assets and safeguarding customer crypto liabilities for related parties as of June 30, 2024 and December 31, 2023 were $9.6 billion and $8.8 billion, respectively. Customer custodial funds and Customer custodial cash liabilities for related parties as of June 30, 2024 and December 31, 2023 were $10.4 million and $348.0 million, respectively.
Other assets
As of June 30, 2024 and December 31, 2023, the Company made strategic investments of an aggregate of $3.3 million and $4.0 million, respectively, in investees in which certain related parties of the Company held an interest over 10%.
Expenses and Accounts payable
During the three months ended June 30, 2024 and 2023, the Company incurred $0.3 million and an immaterial amount, respectively, and during the six months ended June 30, 2024 and 2023, the Company incurred $1.4 million and an immaterial amount, respectively, for professional and consulting services provided by entities affiliated with related parties. As of June 30, 2024 and December 31, 2023, Accounts payable to related party parties were immaterial.
v3.24.2.u1
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
 6 Months Ended
Jun. 30, 2024
Supplemental Cash Flow Elements [Abstract]  
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
20. SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Changes in operating assets and liabilities affecting cash were as follows (in thousands):
Six Months Ended June 30,
20242023
USDC$(492,242)$508,752 
Accounts receivable(69,779)(36,579)
Deposits in transit(5,012)(88,680)
Income taxes, net(1,667)(7,012)
Other current and non-current assets(2,971)31,003 
Other current and non-current liabilities4,037 (80,640)
Net changes in operating assets and liabilities$(567,634)$326,844 
The following is a reconciliation of cash, cash equivalents, and restricted cash and cash equivalents (in thousands):
June 30,
20242023
Cash and cash equivalents$7,225,535 $5,166,733 
Restricted cash and cash equivalents34,282 20,697 
Customer custodial cash and cash equivalents4,015,067 3,697,031 
Total cash, cash equivalents, and restricted cash and cash equivalents$11,274,884 $8,884,461 
The following is a supplemental schedule of non-cash investing and financing activities (in thousands):
Six Months Ended June 30,
20242023
Crypto asset loan receivables originated$837,729 $— 
Crypto asset loan receivables repaid741,500 — 
Cumulative-effect adjustment due to the adoption of ASU 2023-08561,489 — 
Non-cash assets received as collateral returned372,691 86,390 
Non-cash assets received as collateral361,718 59,516 
Crypto assets borrowed225,037 272,590 
Crypto assets borrowed repaid with crypto assets100,285 304,433 
Non-cash assets pledged as collateral59,138 63,460 
Non-cash assets pledged as collateral returned47,013 42,514 
Disposal of crypto asset investments for USDC10,346 7,283 
Purchase of strategic investments with USDC7,902 2,750 
Purchase of crypto asset investments with USDC1,941 6,580 
Non-cash consideration paid for business combinations— 51,494 
Realized gains on crypto assets held for investment (prior to ASU 2023-08)— 48,491 
v3.24.2.u1
Pay vs Performance Disclosure - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Pay vs Performance Disclosure        
Net income (loss) $ 36,150 $ (97,405) $ 1,212,395 $ (176,301)
v3.24.2.u1
Insider Trading Arrangements
 3 Months Ended 6 Months Ended
Jun. 30, 2024
shares
Jun. 30, 2024
shares
Trading Arrangements, by Individual    
Non-Rule 10b5-1 Arrangement Adopted false  
Non-Rule 10b5-1 Arrangement Terminated false  
Frederick Ernest Ehrsam III [Member]    
Trading Arrangements, by Individual    
Material Terms of Trading Arrangement  
On May 29, 2024, Frederick Ernest Ehrsam III, a member of the Company’s board of directors, terminated a Rule 10b5-1 Plan he had previously adopted with respect to the sale of up to 614,032 shares of Class A common stock owned by The Frederick Ernest Ehrsam III Living Trust, of which Mr. Ehrsam is trustee (the “Ehrsam Plan”). The Ehrsam Plan was adopted on March 1, 2024 and, prior to its termination by Mr. Ehrsam, was to expire by its terms on December 6, 2024, or earlier, upon the completion of all transactions subject to the trading arrangements specified in the Ehrsam Plan or the occurrence of certain events set forth therein. As of the date of termination of the Ehrsam Plan, Mr. Ehrsam had not sold any shares of Class A common stock under its terms.
Name Frederick Ernest Ehrsam III  
Title member of the Company’s board of directors  
Rule 10b5-1 Arrangement Terminated true  
Termination Date May 29, 2024  
Aggregate Available 614,032 614,032
Gokul Rajaram [Member]    
Trading Arrangements, by Individual    
Material Terms of Trading Arrangement  
On May 30, 2024, Gokul Rajaram, a member of the Company’s board of directors, entered into a Rule 10b5-1 Plan (the “Rajaram Plan”) providing for the potential sale of up to 6,857 shares of Class A common stock owned by Mr. Rajaram, so long as the market price of the Class A common stock satisfies certain threshold prices specified in the Rajaram Plan, between an estimated start date of September 18, 2024 and September 18, 2025, or earlier, upon the completion of all transactions subject to the trading arrangements specified in the Rajaram Plan or the occurrence of certain events set forth therein.
Name Gokul Rajaram  
Title member of the Company’s board of directors  
Rule 10b5-1 Arrangement Adopted true  
Adoption Date May 30, 2024  
Expiration Date September 18, 2025  
Arrangement Duration 365 days  
Aggregate Available 6,857 6,857
v3.24.2.u1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
 6 Months Ended
Jun. 30, 2024
Accounting Policies [Abstract]  
Basis of presentation and preparation
Basis of presentation and preparation
The accompanying Condensed Consolidated Financial Statements include the accounts of the Company and its subsidiaries – entities in which the Company holds, directly or indirectly, more than 50% of the voting rights, or where it exercises control. The Condensed Consolidated Financial Statements are unaudited but have been prepared in accordance with United States (“U.S.”) generally accepted accounting principles (“GAAP”) on the same basis as the audited Consolidated Financial Statements, and in management’s opinion, reflect all adjustments, consisting only of normal, recurring adjustments, that are necessary for the fair presentation of the Company’s Financial Statements. Preparation of the Condensed Consolidated Financial Statements in accordance with GAAP requires management to make estimates and assumptions in the Condensed Consolidated Financial Statements and notes thereto. Certain prior period amounts in the Condensed Consolidated Financial Statements have been reclassified to conform to the current period’s presentation. The unaudited Condensed Consolidated Results of Operations for the three and six months ended June 30, 2024 are not necessarily indicative of the results to be expected for the full year or any other period and should be read in conjunction with the audited Consolidated Financial Statements and notes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2023 filed with the Securities and Exchange Commission (the “SEC”) on February 15, 2024 (the “Annual Report”).
There were no changes to the Company’s most significant estimates and assumptions, significant accounting policies, or recent accounting pronouncements that were disclosed in Note 2. Summary of Significant Accounting Policies to the audited Consolidated Financial Statements included in the Annual Report, other than as discussed below.
Concentration of credit risk
Concentration of credit risk
The Company’s cash and cash equivalents, restricted cash and cash equivalents, customer custodial funds, USDC, loan receivables, certain crypto assets held, accounts receivable, and deposits are potentially subject to concentration of credit risk. See below for a discussion of each of these risks by counterparty and type of transaction.
Funds held at financial institutions
Cash and cash equivalents, restricted cash and cash equivalents, 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.
Funds held at trading venues, payment processors, and clearing brokers
The Company holds cash, restricted cash, and crypto assets at crypto asset trading venues, payment processors, and clearing brokers, and performs a regular assessment of these venues as part of its risk management process. As of June 30, 2024, the Company held $159.2 million at these venues, including $97.1 million in cash and $46.0 million in crypto assets. As of December 31, 2023, the Company held $93.5 million at these venues, including $88.8 million in cash.
USDC
The Company holds USDC, a stablecoin redeemable on a one-to-one basis for U.S. dollars. USDC is accounted for as a financial instrument in the Condensed Consolidated Balance Sheets. The issuer of USDC reported that, as of June 30, 2024, underlying reserves were held in cash, short-duration U.S. Treasuries, and overnight U.S. Treasury repurchase agreements within segregated accounts for the benefit of USDC holders.
Accounts receivable
As of June 30, 2024 and December 31, 2023, the Company had two counterparties who accounted for more than 10% of the Company’s Accounts receivable, net. The Company performs a regular assessment of accounts receivable as part of its risk management process. In determining expected credit losses, the Company considers historical loss experience and the aging of its receivable balance. See Note 7. Accounts Receivable, Net for additional details.
Loan receivables
As of June 30, 2024 and December 31, 2023, the Company had three counterparties who accounted for more than 10% of the Company’s recorded loan receivables. As of both of these dates, the Company also had three counterparties who accounted for more than 10% of the Company’s customer loans that did not meet the recognition criteria. See Note 6. Collateralized Arrangements and Financing for additional details.
Revenue
During both the three and six months ended June 30, 2024 and 2023, one counterparty accounted for more than 10% of total revenue in each period.
Crypto assets held
Crypto assets held
The Company holds crypto assets for investment and operating purposes, as well as borrowed crypto assets and crypto assets held as collateral.
Effective January 1, 2024, the Company adopted ASU No. 2023-08, Accounting for and Disclosure of Crypto Assets (“ASU 2023-08”) using a modified retrospective approach. Upon adoption, the Company recognized a fair value adjustment on crypto assets held of $739.5 million and established an associated deferred tax liability of $177.9 million, for a net cumulative-effect adjustment of $561.5 million increasing retained earnings.
As a result of the adoption of ASU 2023-08, the Company introduced four new categories of crypto assets held in the Condensed Consolidated Balance Sheets based on their nature. This updated presentation aligns with the ASU 2023-08 requirements and describes the purpose of the various types of crypto assets held by the Company.
Crypto assets held for investment
Crypto assets held for investment are primarily held long term. The Company does not engage in regular trading of these crypto assets but may loan crypto assets held for investment through Prime Financing. See Note 6. Collateralized Arrangements and Financing for additional details on Prime Financing. Crypto assets held for investment are initially recorded at cost and are subsequently remeasured at fair value on a specific identification basis at the end of each reporting period, with changes in fair value recognized in net income. Fair value is measured using quoted crypto asset prices within the Company’s principal market at the time of measurement. Fair value gains and losses on Crypto assets held for investment are recorded in Losses (gains) on crypto assets held for investment, net in the Condensed Consolidated Statements of Operations. Cash flows from crypto asset investment purchases and sales are recorded in Net cash used in investing activities in the Condensed Consolidated Statements of Cash Flows.
Crypto assets held for operations
The Company may receive crypto assets as a form of payment for transaction revenue, blockchain rewards, custodial fee revenue, and other subscriptions and services revenue which are recorded in Crypto assets held for operations when received. Crypto assets received as a form of payment are converted to cash nearly immediately or are used timely to fulfill corporate expenses. Crypto assets held for operations are initially recorded at the transaction price of the crypto assets at contract inception and are subsequently remeasured at fair value on a first in first out basis at the end of each reporting period, with changes in fair value recognized in net income. Fair value is measured using quoted crypto asset prices within the Company’s principal market at the time of measurement. Fair value gains and losses on Crypto assets held for operations are recorded in Losses (gains) on crypto assets held for operations, net in the Condensed Consolidated Statements of Operations. Cash flows from crypto assets held for operations are recorded as Net changes in operating assets and liabilities in the Condensed Consolidated Statements of Cash Flows. Crypto assets held for operations are recorded in Other current assets in the Condensed Consolidated Balance Sheets.
Crypto assets borrowed
Crypto assets borrowed represent crypto assets borrowed from third parties to facilitate Prime Financing. Contemporaneously with the adoption of ASU 2023-08, the Company dedesignated $62.9 million of crypto assets borrowed that previously qualified as fair value hedges against the corresponding crypto asset borrowings. There was a net zero impact of the cumulative fair value hedge basis adjustments that were reversed and recorded in Transaction expense. As of December 31, 2023, the cumulative amount of the fair value hedge adjustment was $3.9 million.
Post hedge dedesignation and ASU 2023-08 adoption, crypto assets borrowed by the Company, that have not been loaned out, are recorded in Crypto assets borrowed in the Condensed Consolidated Balance Sheets. Crypto assets borrowed are initially recorded at cost and are subsequently remeasured at fair value using the average costing method at the end of each reporting period, with changes in fair value recognized in net income. Fair value is measured using quoted crypto asset prices within the Company’s principal market at the time of measurement. Fair value gains and losses on Crypto assets borrowed are recorded in Transaction expense. See Note 6. Collateralized Arrangements and Financing for further details on Crypto assets borrowed and Note 20. Supplemental Disclosures of Cash Flow Information for details on cash flows from Crypto assets borrowed included in the supplemental schedule of non-cash investing and financing activities.
Crypto assets held as collateral
The Company requires borrowers to pledge collateral on loans originated through Prime Financing. Crypto assets held as collateral are initially recorded at cost if the Company has the right to sell, pledge, or rehypothecate the assets and are subsequently remeasured at fair value using the specific identification method at the end of each reporting period, with changes in fair value recognized in net income. Fair value is measured using quoted crypto asset prices within the Company’s principal market at the time of measurement. Fair value gains and losses on Crypto assets held as collateral are recorded in Transaction expense in the Condensed Consolidated Statements of Operations. See Note 6. Collateralized Arrangements and Financing for additional details on Crypto assets held as collateral and Note 20. Supplemental Disclosures of Cash Flow Information for details on flows of non-cash collateral, including crypto assets, included in the supplemental schedule of non-cash investing and financing activities.
The following table shows the changes in presentation in the Condensed Consolidated Balance Sheets upon the Company’s adoption of ASU 2023-08 (in thousands):
December 31, 2023
Previously Reported
Adjustment
As Adjusted
Crypto assets held(1)
$449,925 $(449,925)$— 
Crypto assets held for investment
— 330,610 330,610 
Crypto assets held for operations
— 74,103 74,103 
Crypto assets borrowed
— 45,212 45,212 
$449,925 $— $449,925 
_________________
(1)Crypto assets held as collateral did not meet the recognition criteria as of December 31, 2023.
Recent accounting pronouncements
Recent accounting pronouncements
There have been no material developments relating to recent accounting pronouncements, including the expected dates of adoption and estimated effects on the Consolidated Financial Statements and footnote disclosures, since those disclosed in the Annual Report.
v3.24.2.u1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 6 Months Ended
Jun. 30, 2024
Accounting Policies [Abstract]  
Accounting standards update and change in accounting principle
The following table shows the changes in presentation in the Condensed Consolidated Balance Sheets upon the Company’s adoption of ASU 2023-08 (in thousands):
December 31, 2023
Previously Reported
Adjustment
As Adjusted
Crypto assets held(1)
$449,925 $(449,925)$— 
Crypto assets held for investment
— 330,610 330,610 
Crypto assets held for operations
— 74,103 74,103 
Crypto assets borrowed
— 45,212 45,212 
$449,925 $— $449,925 
_________________
(1)Crypto assets held as collateral did not meet the recognition criteria as of December 31, 2023.
v3.24.2.u1
ACQUISITIONS (Tables)
 6 Months Ended
Jun. 30, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract]  
Schedule of business acquisitions by acquisition
The total consideration transferred in the acquisition was $96.8 million and consisted of the following (in thousands):
Cash$30,830 
Cash payable1,005 
Previously-held interest on acquisition date20,000 
Class A common stock of the Company44,995 
   Total purchase consideration$96,830 
Schedule of recognized identified assets acquired and liabilities assumed
The results of operations and the fair values of the assets acquired and liabilities assumed have been recorded in the Condensed Consolidated Financial Statements as of the date of acquisition. The following table summarizes the fair values of assets acquired and liabilities assumed as of the date of acquisition (in thousands):
Goodwill$65,764 
Intangible assets, net21,100 
Other assets and liabilities, net9,966 
Net assets acquired$96,830 
Schedule of components of finite lived and indefinite lived identifiable intangible assets acquired
The following table sets forth the components of identifiable intangible assets acquired and their estimated useful lives as of the date of acquisition (in thousands, except for years data):
Fair ValueUseful Life at Acquisition (in years)
Licenses$1,100 Indefinite
Customer relationships17,100 6
In-process research and development (“IPR&D”)2,900 N/A
v3.24.2.u1
REVENUE (Tables)
 6 Months Ended
Jun. 30, 2024
Revenue from Contract with Customer [Abstract]  
Schedule of disaggregated revenue by source
The following table presents revenue of the Company disaggregated by revenue source (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Net revenue
Transaction revenue
Consumer, net(1)
$664,772  $288,971 $1,599,984 $618,123 
Institutional, net63,624 17,061 149,016 39,372 
Other transaction revenue(1)
52,506 21,066 108,643 44,316 
Total transaction revenue780,902 327,098 1,857,643 701,811 
Subscription and services revenue
Stablecoin revenue240,436 151,394 437,753 350,292 
Blockchain rewards185,139 87,613 336,068 161,363 
Interest and finance fee income(2)
69,400 51,932 136,063 95,245 
Custodial fee revenue34,505 16,992 66,846 34,034 
Other subscription and services revenue(2)
69,560 27,471 133,246 56,153 
Total subscription and services revenue599,040 335,402 1,109,976 697,087 
Total net revenue1,379,942 662,500 2,967,619 1,398,898 
Other revenue
Corporate interest and other income69,686 45,411 119,579 81,542 
Total other revenue69,686 45,411 119,579 81,542 
Total revenue$1,449,628 $707,911 $3,087,198 $1,480,440 
__________________
(1)During the first quarter of 2024, the Company reclassified Base and payment-related revenue from Consumer, net to Other transaction revenue. Prior period amounts have been reclassified to conform to current period presentation.
(2)During the first quarter of 2024, the Company reclassified Prime Financing fee income from Other subscription and services revenue to Interest and finance fee income. Prior period amounts have been reclassified to conform to current period presentation.
Schedule of revenues disaggregated by geography
Below is Total revenue disaggregated by geography based on domiciles of the customers (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
U.S.$1,232,616 $637,861 $2,586,066 $1,324,630 
International(1)
217,012 70,050 501,132 155,810 
     Total revenue$1,449,628 $707,911 $3,087,198 $1,480,440 
__________________
(1)No country accounted for more than 10% of Total revenue.
v3.24.2.u1
COLLATERALIZED ARRANGEMENTS AND FINANCING (Tables)
 6 Months Ended
Jun. 30, 2024
Receivables [Abstract]  
Schedule of Prime Financing lending arrangements
The following table summarizes the Company’s Prime Financing lending arrangements (in thousands):
June 30,December 31,
20242023
Loan receivables
Fiat trade finance receivables$85,701 $— 
Fiat loan receivables247,130 171,196 
Crypto asset loan receivables107,520 22,229 
Total loan receivables$440,351 $193,425 
Customer loans not meeting recognition criteria
USDC$271,945 $205,645 
Schedule of crypto asset holdings
Crypto assets held as collateral and Obligation to return collateral consisted of the following (in thousands, except units):
June 30, 2024December 31, 2023
UnitsFair ValueUnitsFair Value
Crypto assets held as collateral
Bitcoin(1)
337 $21,119 — $— 
Total held as collateral$21,119 $— 
Obligation to return collateral
FiatN/A$251,052 N/A$1,063 
Bitcoin337 21,119 — — 
Total obligation to return collateral
$272,171 $1,063 
Customer collateral pledged, not recognized
nm$1,333,686 nm$712,644 
__________________
nm - not meaningful
(1)The cost basis of Bitcoin held as collateral as of June 30, 2024 was $23.8 million.
The following table summarizes the units, cost basis, and fair value of Crypto assets borrowed and the associated Crypto asset borrowings (in thousands, except units):
June 30, 2024December 31, 2023
UnitsCost BasisFair Value
Carrying Value(1)
Crypto assets borrowed
Bitcoin2,909 $122,740 $182,310 $36,368 
Ethereum5,707 15,505 19,587 3,720 
Solana48,375 3,850 7,081 3,516 
Other crypto assets(2)
nm15,136 14,145 1,608 
Total borrowed
$157,231 $223,123 $45,212 
Crypto asset borrowings
Bitcoin2,991 $126,694 $187,452 $50,679 
Ethereum7,226 19,511 24,801 7,059 
Solana48,375 3,850 7,081 3,513 
Other crypto assets(2)
nm19,230 18,140 1,729 
Total borrowings$169,285 $237,474 $62,980 
__________________
nm - not meaningful
(1)Recorded at fair value as of December 31, 2023.
(2)Includes various other crypto assets balances, none of which individually represented more than 5% of total Crypto assets borrowed or total Crypto asset borrowings, as applicable.
The following table summarizes the units, cost basis, and fair value of Crypto assets held for investment (in thousands, except units):
June 30, 2024December 31, 2023
UnitsCost BasisFair Value
Carrying Value(1)
Bitcoin8,999 $215,518 $563,972 $126,614 
Ethereum112,024 248,722 384,508 129,131 
Other crypto assets(2)
nm208,434 285,678 74,865 
Total held for investment$672,674 $1,234,158 $330,610 
__________________
nm - not meaningful
(1)Recorded at impaired cost as of December 31, 2023.
(2)Includes various other crypto assets balances, none of which individually represented more than 5% of total Crypto assets held for investment.
The following table summarizes the units, cost basis, and fair value of Crypto assets held for operations (in thousands, except units):
June 30, 2024December 31, 2023
UnitsCost BasisFair Value
Carrying Value(1)
Bitcoin138 $8,278 $8,634 $7,243 
Ethereum9,330 28,478 32,025 15,775 
Solana107,228 15,615 15,700 10,275 
Other crypto assets(2)
nm38,461 27,873 40,810 
Total held for operations
$90,832 $84,232 $74,103 
__________________
nm - not meaningful
(1)Recorded at impaired cost as of December 31, 2023.
(2)Includes various other crypto asset balances, none of which individually represented more than 5% of total Crypto assets held for operations.
Schedule of crypto asset activity
The following table summarizes the reconciliation of Crypto assets held as collateral (in thousands):
Three Months Ended
June 30, 2024		Six Months Ended
June 30, 2024
Beginning balance$106,610 $— 
Collateral received270,920 361,718 
Collateral returned(357,317)(372,691)
Gains3,606 34,792 
Losses(2,700)(2,700)
Ending balance$21,119 $21,119 
The following table summarizes the reconciliation of Crypto assets borrowed (in thousands):
Three Months Ended
June 30, 2024		Six Months Ended
June 30, 2024
Beginning balance$231,348 $45,212 
Additions:
Borrowings33,601 225,037 
Customer repayment of loan receivables(1)
426,631 711,885 
Dispositions:
Repayment of borrowings(22,834)(100,285)
Origination of loan receivables(1)
(410,928)(712,096)
Gains— 56,841 
Losses(34,695)(3,471)
Ending balance$223,123 $223,123 
__________________
(1)Represents activity that relates to loans originated from borrowed assets. See Note 8. Crypto Assets Held for Investment for the remaining Crypto asset loan receivables activity.
The following table summarizes the reconciliation of Crypto assets held for investment (in thousands):
Three Months Ended
June 30, 2024		Six Months Ended
June 30, 2024
Beginning balance$1,522,328 $330,610 
Cumulative-effect adjustment from adoption of ASU 2023-08— 717,373 
Additions(1)
11,577 15,109 
Sales(4,898)(64,625)
Transfers:
(To) from Crypto assets held for operations(1,671)300 
Origination of loan receivables(2)
(2,552)(125,633)
Customer repayment of loan receivables(2)
28,394 29,615 
Gain(3)
34,593 409,545 
Loss(3)
(353,613)(78,136)
Ending balance$1,234,158 $1,234,158 
__________________
(1)Additions represent purchases of, and staking rewards earned on, Crypto assets held for investment.
(2)Represents loans originated from Crypto assets held for investment. See Note 6. Collateralized Arrangements and Financing for the remaining Crypto asset loan receivables activity.
(3)Includes cumulative realized losses of $3.6 million during the three months ended June 30, 2024 and cumulative realized gains of $13.4 million during the six months ended June 30, 2024.
Schedule of collateral posted
The Company’s corporate assets pledged as collateral against Crypto asset borrowings consisted of the following (in thousands, except units):
June 30, 2024December 31, 2023
UnitsFair ValueUnitsFair Value
Assets pledged as collateral
USDC
64,005,096 $64,005 51,879,705 $51,880 
FiatN/A— N/A1,191 
Total pledged as collateral
$64,005 $53,071 
Assets pledged as collateral not meeting derecognition criteria
USDC
195,372,009 $195,372 29,577,339 $29,577 
v3.24.2.u1
ACCOUNTS RECEIVABLE, NET (Tables)
 6 Months Ended
Jun. 30, 2024
Receivables [Abstract]  
Schedule of accounts receivable, net
Accounts receivable, net consisted of the following (in thousands):
June 30,December 31,
20242023
Stablecoin revenue receivable$77,968 $57,885 
Customer fee revenue receivable34,577 23,603 
In-transit customer receivables52,436 42,562 
Other accounts receivable92,526 66,799 
Gross accounts receivable257,507 190,849 
Less: allowance for doubtful accounts(21,063)(22,559)
Total accounts receivable, net$236,444 $168,290 
v3.24.2.u1
CRYPTO ASSETS HELD FOR INVESTMENT (Tables)
 6 Months Ended
Jun. 30, 2024
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of crypto asset holdings
Crypto assets held as collateral and Obligation to return collateral consisted of the following (in thousands, except units):
June 30, 2024December 31, 2023
UnitsFair ValueUnitsFair Value
Crypto assets held as collateral
Bitcoin(1)
337 $21,119 — $— 
Total held as collateral$21,119 $— 
Obligation to return collateral
FiatN/A$251,052 N/A$1,063 
Bitcoin337 21,119 — — 
Total obligation to return collateral
$272,171 $1,063 
Customer collateral pledged, not recognized
nm$1,333,686 nm$712,644 
__________________
nm - not meaningful
(1)The cost basis of Bitcoin held as collateral as of June 30, 2024 was $23.8 million.
The following table summarizes the units, cost basis, and fair value of Crypto assets borrowed and the associated Crypto asset borrowings (in thousands, except units):
June 30, 2024December 31, 2023
UnitsCost BasisFair Value
Carrying Value(1)
Crypto assets borrowed
Bitcoin2,909 $122,740 $182,310 $36,368 
Ethereum5,707 15,505 19,587 3,720 
Solana48,375 3,850 7,081 3,516 
Other crypto assets(2)
nm15,136 14,145 1,608 
Total borrowed
$157,231 $223,123 $45,212 
Crypto asset borrowings
Bitcoin2,991 $126,694 $187,452 $50,679 
Ethereum7,226 19,511 24,801 7,059 
Solana48,375 3,850 7,081 3,513 
Other crypto assets(2)
nm19,230 18,140 1,729 
Total borrowings$169,285 $237,474 $62,980 
__________________
nm - not meaningful
(1)Recorded at fair value as of December 31, 2023.
(2)Includes various other crypto assets balances, none of which individually represented more than 5% of total Crypto assets borrowed or total Crypto asset borrowings, as applicable.
The following table summarizes the units, cost basis, and fair value of Crypto assets held for investment (in thousands, except units):
June 30, 2024December 31, 2023
UnitsCost BasisFair Value
Carrying Value(1)
Bitcoin8,999 $215,518 $563,972 $126,614 
Ethereum112,024 248,722 384,508 129,131 
Other crypto assets(2)
nm208,434 285,678 74,865 
Total held for investment$672,674 $1,234,158 $330,610 
__________________
nm - not meaningful
(1)Recorded at impaired cost as of December 31, 2023.
(2)Includes various other crypto assets balances, none of which individually represented more than 5% of total Crypto assets held for investment.
The following table summarizes the units, cost basis, and fair value of Crypto assets held for operations (in thousands, except units):
June 30, 2024December 31, 2023
UnitsCost BasisFair Value
Carrying Value(1)
Bitcoin138 $8,278 $8,634 $7,243 
Ethereum9,330 28,478 32,025 15,775 
Solana107,228 15,615 15,700 10,275 
Other crypto assets(2)
nm38,461 27,873 40,810 
Total held for operations
$90,832 $84,232 $74,103 
__________________
nm - not meaningful
(1)Recorded at impaired cost as of December 31, 2023.
(2)Includes various other crypto asset balances, none of which individually represented more than 5% of total Crypto assets held for operations.
Schedule of crypto asset activity
The following table summarizes the reconciliation of Crypto assets held as collateral (in thousands):
Three Months Ended
June 30, 2024		Six Months Ended
June 30, 2024
Beginning balance$106,610 $— 
Collateral received270,920 361,718 
Collateral returned(357,317)(372,691)
Gains3,606 34,792 
Losses(2,700)(2,700)
Ending balance$21,119 $21,119 
The following table summarizes the reconciliation of Crypto assets borrowed (in thousands):
Three Months Ended
June 30, 2024		Six Months Ended
June 30, 2024
Beginning balance$231,348 $45,212 
Additions:
Borrowings33,601 225,037 
Customer repayment of loan receivables(1)
426,631 711,885 
Dispositions:
Repayment of borrowings(22,834)(100,285)
Origination of loan receivables(1)
(410,928)(712,096)
Gains— 56,841 
Losses(34,695)(3,471)
Ending balance$223,123 $223,123 
__________________
(1)Represents activity that relates to loans originated from borrowed assets. See Note 8. Crypto Assets Held for Investment for the remaining Crypto asset loan receivables activity.
The following table summarizes the reconciliation of Crypto assets held for investment (in thousands):
Three Months Ended
June 30, 2024		Six Months Ended
June 30, 2024
Beginning balance$1,522,328 $330,610 
Cumulative-effect adjustment from adoption of ASU 2023-08— 717,373 
Additions(1)
11,577 15,109 
Sales(4,898)(64,625)
Transfers:
(To) from Crypto assets held for operations(1,671)300 
Origination of loan receivables(2)
(2,552)(125,633)
Customer repayment of loan receivables(2)
28,394 29,615 
Gain(3)
34,593 409,545 
Loss(3)
(353,613)(78,136)
Ending balance$1,234,158 $1,234,158 
__________________
(1)Additions represent purchases of, and staking rewards earned on, Crypto assets held for investment.
(2)Represents loans originated from Crypto assets held for investment. See Note 6. Collateralized Arrangements and Financing for the remaining Crypto asset loan receivables activity.
(3)Includes cumulative realized losses of $3.6 million during the three months ended June 30, 2024 and cumulative realized gains of $13.4 million during the six months ended June 30, 2024.
v3.24.2.u1
CUSTOMER ASSETS AND LIABILITIES (Tables)
 6 Months Ended
Jun. 30, 2024
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
Schedule of customers' cash and crypto positions
The following table presents customers’ cash and safeguarded crypto positions (in thousands):
June 30,December 31,
20242023
Customer custodial funds$4,197,837 $4,570,845 
Safeguarding customer crypto assets269,198,067 192,583,060 
Total customer assets$273,395,904 $197,153,905 
Customer custodial cash liabilities$4,197,837 $4,570,845 
Safeguarding customer crypto liabilities269,198,067 192,583,060 
Total customer liabilities$273,395,904 $197,153,905 
Schedule of fair values of safeguarding customer crypto assets
The following table sets forth the fair values of Safeguarding customer crypto assets as shown in the Condensed Consolidated Balance Sheets (in thousands, except percentages):
June 30, 2024December 31, 2023
Fair Value
Percentage of Total
Fair Value
Percentage of Total
Bitcoin$137,375,583 51 %$89,864,637 47 %
Ethereum58,764,013 22 %40,200,059 21 %
Solana17,213,869 6 %12,906,278 6 %
Other crypto assets(1)
55,844,602 21 %49,612,086 26 %
Total safeguarding customer crypto assets$269,198,067 100 %$192,583,060 100 %
__________________
(1)Includes various other crypto assets balances, none of which individually represented more than 5% of total Safeguarding customer crypto assets.
v3.24.2.u1
OTHER CONDENSED CONSOLIDATED BALANCE SHEETS DETAILS (Tables)
 6 Months Ended
Jun. 30, 2024
Organization, Consolidation and Presentation of Financial Statements [Abstract]  
Schedule of other assets current and non-current assets
The following tables present certain other details of the Condensed Consolidated Balance Sheets (in thousands):
Other current assets
June 30,December 31,
20242023
Crypto assets held for operations$84,232 $74,103 
Prepaid expenses78,275 79,552 
Assets pledged as collateral(1)
64,005 53,071 
Income tax receivable6,812 63,726 
Other19,902 16,191 
Total other current assets$253,226 $286,643 
_______________
(1)See Note 6. Collateralized Arrangements and Financing for additional details.
June 30,December 31,
20242023
Strategic investments
$340,608 $343,045 
Software and equipment, net189,533 192,550 
Intangible assets, net
70,649 86,422 
Income tax receivable55,968 — 
Other31,801 32,577 
Total other non-current assets$688,559 $654,594 
Schedule of crypto asset holdings
Crypto assets held as collateral and Obligation to return collateral consisted of the following (in thousands, except units):
June 30, 2024December 31, 2023
UnitsFair ValueUnitsFair Value
Crypto assets held as collateral
Bitcoin(1)
337 $21,119 — $— 
Total held as collateral$21,119 $— 
Obligation to return collateral
FiatN/A$251,052 N/A$1,063 
Bitcoin337 21,119 — — 
Total obligation to return collateral
$272,171 $1,063 
Customer collateral pledged, not recognized
nm$1,333,686 nm$712,644 
__________________
nm - not meaningful
(1)The cost basis of Bitcoin held as collateral as of June 30, 2024 was $23.8 million.
The following table summarizes the units, cost basis, and fair value of Crypto assets borrowed and the associated Crypto asset borrowings (in thousands, except units):
June 30, 2024December 31, 2023
UnitsCost BasisFair Value
Carrying Value(1)
Crypto assets borrowed
Bitcoin2,909 $122,740 $182,310 $36,368 
Ethereum5,707 15,505 19,587 3,720 
Solana48,375 3,850 7,081 3,516 
Other crypto assets(2)
nm15,136 14,145 1,608 
Total borrowed
$157,231 $223,123 $45,212 
Crypto asset borrowings
Bitcoin2,991 $126,694 $187,452 $50,679 
Ethereum7,226 19,511 24,801 7,059 
Solana48,375 3,850 7,081 3,513 
Other crypto assets(2)
nm19,230 18,140 1,729 
Total borrowings$169,285 $237,474 $62,980 
__________________
nm - not meaningful
(1)Recorded at fair value as of December 31, 2023.
(2)Includes various other crypto assets balances, none of which individually represented more than 5% of total Crypto assets borrowed or total Crypto asset borrowings, as applicable.
The following table summarizes the units, cost basis, and fair value of Crypto assets held for investment (in thousands, except units):
June 30, 2024December 31, 2023
UnitsCost BasisFair Value
Carrying Value(1)
Bitcoin8,999 $215,518 $563,972 $126,614 
Ethereum112,024 248,722 384,508 129,131 
Other crypto assets(2)
nm208,434 285,678 74,865 
Total held for investment$672,674 $1,234,158 $330,610 
__________________
nm - not meaningful
(1)Recorded at impaired cost as of December 31, 2023.
(2)Includes various other crypto assets balances, none of which individually represented more than 5% of total Crypto assets held for investment.
The following table summarizes the units, cost basis, and fair value of Crypto assets held for operations (in thousands, except units):
June 30, 2024December 31, 2023
UnitsCost BasisFair Value
Carrying Value(1)
Bitcoin138 $8,278 $8,634 $7,243 
Ethereum9,330 28,478 32,025 15,775 
Solana107,228 15,615 15,700 10,275 
Other crypto assets(2)
nm38,461 27,873 40,810 
Total held for operations
$90,832 $84,232 $74,103 
__________________
nm - not meaningful
(1)Recorded at impaired cost as of December 31, 2023.
(2)Includes various other crypto asset balances, none of which individually represented more than 5% of total Crypto assets held for operations.
Schedule of accrued expenses and other current liabilities
June 30,December 31,
20242023
Accrued payroll and payroll related expenses$140,445 $224,237 
Other accrued expenses151,747 89,254 
Accounts payable37,443 39,294 
Income taxes payable14,777 17,366 
Other payables103,758 126,032 
Total accrued expenses and other current liabilities$448,170 $496,183 
v3.24.2.u1
LONG-TERM DEBT (Tables)
 6 Months Ended
Jun. 30, 2024
Debt Disclosure [Abstract]  
Schedule of long-term debt instruments
The components of Long-term debt as of June 30, 2024 and December 31, 2023 were as follows (in thousands, except percentages):
Effective Interest RatePrincipal AmountUnamortized Debt Discount and Issuance CostsNet Carrying Amount
June 30, 2024
0.50% 2026 Convertible Notes due on June 1, 2026
0.98 %$1,273,013 $(12,403)$1,260,610 
3.38% 2028 Senior Notes due on October 1, 2028
3.57 %1,000,000 (7,397)992,603 
0.25% 2030 Convertible Notes due on April 1, 2030
0.55 %1,265,000 (21,134)1,243,866 
3.63% 2031 Senior Notes due on October 1, 2031
3.77 %737,457 (6,517)730,940 
Total$4,275,470 $(47,451)$4,228,019 
December 31, 2023
0.50% 2026 Convertible Notes due on June 1, 2026
0.98 %$1,273,013 $(15,378)$1,257,635 
3.38% 2028 Senior Notes due on October 1, 2028
3.57 %1,000,000 (8,218)991,782 
3.63% 2031 Senior Notes due on October 1, 2031
3.77 %737,457 (6,917)730,540 
Total$3,010,470 $(30,513)$2,979,957 
v3.24.2.u1
DERIVATIVES (Tables)
 6 Months Ended
Jun. 30, 2024
Derivative Instruments and Hedging Activities Disclosure [Abstract]  
Schedule of the notional amount of derivative contracts outstanding
The following table summarizes the balance sheet impact of derivative instruments outstanding as of June 30, 2024 and December 31, 2023 as measured in U.S. dollar equivalents (in thousands), none of which were designated as hedging instruments at June 30, 2024:
Derivative
Condensed Consolidated Balance Sheets LocationNotionalFair Value, NetTotal
June 30, 2024
Accounts receivable, net(1)
$28,057 $15,278 $43,335 
Crypto asset borrowings169,285 68,189 237,474 
Obligation to return collateral(1)
23,819 (2,700)21,119 
Accrued expenses and other current liabilities(1)
24,885 2,987 27,872 
December 31, 2023
Designated as hedging instruments
Crypto asset borrowings$31,666 $13,547 $45,213 
Not designated as hedging instruments
Accounts receivable, net(1)
16,335 28,065 44,400 
Crypto asset borrowings12,503 5,264 17,767 
Accrued expenses and other current liabilities(1)
20,092 590 20,682 
__________________
(1)Represents the portion of the Condensed Consolidated Balance Sheet line item that is denominated in crypto assets.
The following table summarizes information on derivative assets and liabilities that are recorded in the Condensed Consolidated Balance Sheets, by accounting designation (in thousands):
Gross Derivative AssetsGross Derivative Liabilities
Not Designated as HedgesDesignated as HedgesTotal Derivative AssetsNot Designated as HedgesDesignated as HedgesTotal Derivative Liabilities
June 30, 2024
Accounts receivable, net$15,488 $— $15,488 $210 $— $210 
Crypto asset borrowings6,519 — 6,519 74,708 — 74,708 
Obligation to return collateral2,700 — 2,700 — — — 
Accrued expenses and other current liabilities1,865 — 1,865 4,852 — 4,852 
Total fair value of derivative assets and liabilities$26,572 $— $26,572 $79,770 $— $79,770 
December 31, 2023
Accounts receivable, net$28,065 $— $28,065 $— $— $— 
Crypto asset borrowings26 (25)1 5,290 13,522 18,812 
Accrued expenses and other current liabilities2,511 — 2,511 3,101 — 3,101 
Total fair value of derivative assets and liabilities$30,602 $(25)$30,577 $8,391 $13,522 $21,913 
Schedule of gains (losses) recorded in income
Gains (losses) on derivative instruments recorded in the Condensed Consolidated Statements of Operations were as follows (in thousands):
DerivativesHedged Items
Income Statement Impact(4)
DerivativesHedged ItemsIncome Statement Impact
Three Months Ended June 30, 2024Three Months Ended June 30, 2023
Designated as hedging instruments
Crypto asset futures(1)
$— $— $— $5 $— $5 
Crypto asset borrowings(1)
— — — 3,159 333 3,492 
Not designated as hedging instruments
Accounts receivable, net(2)
(25,421)— (25,421)4,156 — 4,156 
Crypto assets pledged as collateral(1)
— — — (196)— (196)
Crypto asset borrowings(3)
46,099 — 46,099 196 — 196 
Obligation to return collateral(3)
(906)— (906)— — — 
Accrued expenses and other current liabilities(1)
(1,299)— (1,299)405 — 405 
Other(1)
13 — 13 12 — 12 
Total$18,486 $— $18,486 $7,737 $333 $8,070 

Six Months Ended June 30, 2024Six Months Ended June 30, 2023
Designated as hedging instruments
Crypto asset futures(1)
$— $— $— $(43,111)$48,491 $5,380 
Crypto asset borrowings(1)
— — — (88,555)48,933 (39,622)
Not designated as hedging instruments
Accounts receivable, net(2)
(11,626)— (11,626)47,080 — 47,080 
Crypto assets pledged as collateral(1)
— — — (196)— (196)
Crypto asset borrowings(3)
(49,815)— (49,815)196 — 196 
Obligation to return collateral(3)
(32,092)— (32,092)— — — 
Accrued expenses and other current liabilities(1)
(3,020)— (3,020)844 — 844 
Other(1)
13 — 13 (201)— (201)
Total$(96,540)$— $(96,540)$(83,943)$97,424 $13,481 
__________________
(1)Changes in fair value are recorded in Other operating expense (income), net in the Condensed Consolidated Statements of Operations.
(2)Changes in fair value are recorded in Other expense (income), net or Other operating expense (income), net in the Condensed Consolidated Statements of Operations depending on the nature of the receivable.
(3)As of January 1, 2024, the date of the Company’s adoption of ASU 2023-08, changes in fair value are recorded in Transaction expense in the Condensed Consolidated Statements of Operations. Prior to adoption of ASU 2023-08, changes in fair value were recorded in Other operating expense (income), net in the Condensed Consolidated Statements of Operations.
(4)Though the Company has dedesignated crypto assets borrowed that previously qualified as fair value hedges, the impact of derivatives is naturally offset, at least in part, in the Condensed Consolidated Statements of Operations by the impact of associated naturally offsetting positions.
v3.24.2.u1
FAIR VALUE MEASUREMENTS (Tables)
 6 Months Ended
Jun. 30, 2024
Fair Value Disclosures [Abstract]  
Schedule of fair value of assets and liabilities
The following table sets forth by level, within the fair value hierarchy, the Company’s assets and liabilities measured and recorded at fair value on a recurring basis (in thousands):
June 30, 2024December 31, 2023
Level 1Level 2Level 1Level 2
Assets
Cash equivalents(1)
$4,068,451 $— $3,682,917 $— 
Restricted cash equivalents(2)
16,590 — — — 
Customer custodial funds(3)
3,698,168 — 3,301,029 — 
Safeguarding customer crypto assets— 269,198,067 — 192,583,060 
Crypto asset loan receivables— 107,520 — 22,229 
Crypto assets held as collateral21,119 — — — 
Crypto assets borrowed(4)
223,123 — 45,212 — 
Crypto assets held for operations84,232 — — — 
Crypto assets held for investment1,234,158 — — — 
Derivative assets(5)
— 26,572 — 30,577 
Total assets$9,345,841 $269,332,159 $7,029,158 $192,635,866 
Liabilities
Safeguarding customer crypto liabilities$— $269,198,067 $— $192,583,060 
Derivative liabilities(5)
— 79,770 — 21,913 
Total liabilities$— $269,277,837 $— $192,604,973 
__________________
(1)Represents cash equivalents, which comprise money market funds and government bonds. Excludes cash, comprising $3.1 billion of corporate cash held in deposit at banks and $97.1 million held at venues as of June 30, 2024 and $1.4 billion of corporate cash held in deposit at banks and $88.8 million held at venues as of December 31, 2023.
(2)Represents restricted cash equivalents, which comprise money market funds. Excludes restricted cash, comprising an immaterial amount held in deposit at banks and held at venues as of June 30, 2024.
(3)Represents customer custodial cash equivalents, which comprise money market funds. Excludes customer custodial cash, comprising $499.7 million and $1.3 billion held in deposit at financial institutions as of June 30, 2024 and December 31, 2023, respectively.
(4)December 31, 2023 amount represents crypto assets designated as hedged items in fair value hedges.
(5)See Note 12. Derivatives for additional details.
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):
Six Months Ended June 30,
20242023
Beginning balance$330,346 $315,285 
Net additions(1)
11,889 4,202 
Upward adjustments3,504 62 
Previously held interest in ORDAM (see Note 4)— (20,000)
Impairments and downward adjustments(17,504)(7,771)
Ending balance$328,235 $291,778 
__________________
(1)Net additions include additions from purchases and reductions due to exits of strategic investments.
v3.24.2.u1
STOCK-BASED COMPENSATION (Tables)
 6 Months Ended
Jun. 30, 2024
Share-Based Payment Arrangement [Abstract]  
Schedule of activity of options outstanding
A summary of stock options activity is as follows (in thousands, except per share and years data):
Weighted Average
Options OutstandingExercise Price Per ShareRemaining Contractual Life (Years)Aggregate Intrinsic Value
Balance at January 1, 202428,697 $25.01 6.1$4,295,055 
Exercised(3,515)19.59 
Forfeited and cancelled(52)49.66 
Balance at June 30, 202425,130 $25.72 5.7$4,938,285 
Exercisable at June 30, 202418,996 $26.45 5.6$3,719,034 
Vested and expected to vest at June 30, 202418,997 $26.45 5.6$3,719,310 
Schedule of activity of RSUs outstanding
A summary of restricted stock units (“RSUs”) activity is as follows (in thousands, except per share data):
Number of SharesWeighted-Average Grant Date Fair Value Per Share
Balance at January 1, 20243,016 $108.07 
Granted5,239 144.35 
Vested(3,143)131.77 
Forfeited and cancelled(442)128.64 
Balance at June 30, 20244,670 $130.88 
Schedule of activity of PRSUs outstanding
A summary of performance restricted stock units (“PRSUs”) activity is as follows (in thousands, except per share data):
Number of SharesWeighted-Average Grant Date Fair Value Per Share
Balance at January 1, 2024804 $55.42 
Vested(80)55.42 
Balance at June 30, 2024724 $55.42 
Schedule of activity of restricted Class A common stock
A summary of restricted Class A common stock activity is as follows (in thousands, except per share data):
Number of SharesWeighted-Average Grant Date Fair Value Per Share
Balance at January 1, 2024543 $114.22 
Vested(196)136.45 
Forfeited and cancelled(4)267.48 
Balance at June 30, 2024343 $99.74 
Schedule of stock based compensation
The effects of stock-based compensation expense in the Condensed Consolidated Statements of Operations are as follows (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Technology and development$133,622 $123,469 $273,452 $246,165 
Sales and marketing16,691 14,930 33,314 29,139 
General and administrative67,621 61,373 135,672 123,328 
Restructuring— — — 84,042 
Total$217,934 $199,772 $442,438 $482,674 
v3.24.2.u1
OTHER EXPENSE (INCOME), NET (Tables)
 6 Months Ended
Jun. 30, 2024
Other Income and Expenses [Abstract]  
Schedule of other (expense) income, net
Other expense (income), net consisted of the following (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Strategic investment losses, net$13,814 $3,839 $14,663 $10,158 
Losses on other financial instruments, net24,584 — 11,398 — 
Losses on crypto asset loan receivables(1)
34,010 — 8,484 — 
Foreign exchange (gains) losses, net(321)(3,344)1,330 10,534 
Other(8,260)(17,059)(17,653)(16,991)
Total other expense (income), net$63,827 $(16,564)$18,222 $3,701 
__________________
(1)Represents fair value remeasurement losses on crypto asset denominated Loan receivables on crypto assets lent from the Company’s Crypto assets held for investment portfolio. See Note 6. Collateralized Arrangements and Financing for additional details.
v3.24.2.u1
NET INCOME (LOSS) PER SHARE (Tables)
 6 Months Ended
Jun. 30, 2024
Earnings Per Share [Abstract]  
Schedule of computation of net income (loss) per share
The computation of Net income (loss) per share, including the weighted average shares outstanding used in the computation (“WASO”), is as follows (in thousands, except per share amounts):
Three Months Ended June 30,Six Months Ended
June 30,
2024202320242023
Basic Net income (loss) per share:
Numerator
Net income (loss)$36,150 $(97,405)$1,212,395 $(176,301)
Less: Income allocated to participating shares(23)— (784)— 
Net income (loss) attributable to common stockholders, basic$36,127 $(97,405)$1,211,611 $(176,301)
Denominator
WASO - basic246,298 234,614 244,546 233,060 
Net income (loss) per share attributable to common stockholders, basic$0.15 $(0.42)$4.95 $(0.76)
Diluted Net income (loss) per share:
Numerator
Net income (loss)$36,150 $(97,405)$1,212,395 $(176,301)
Add: Interest on the Convertible Notes, net of tax— — 6,145 — 
Less: Income allocated to participating shares(22)— (711)— 
Less: Fair value gain on contingent consideration arrangement, net of tax— (196)— (196)
Net income (loss) attributable to common stockholders, diluted$36,128 $(97,601)$1,217,829 $(176,497)
Denominator
WASO - basic246,298 234,614 244,546 233,060 
Weighted-average effect of potentially dilutive shares:
Stock options17,254 — 17,894 — 
RSUs2,672 — 2,250 — 
PRSUs350 — 343 — 
Restricted common stock257 — 283 — 
Convertible Notes— — 5,687 — 
Contingent consideration— 27 — 27 
WASO - diluted266,831 234,641 271,003 233,087 
Net income (loss) per share attributable to common stockholders, diluted$0.14 $(0.42)$4.49 $(0.76)
Schedule of potentially dilutive shares
The following potentially dilutive shares were not included in the calculation of diluted shares outstanding as the effect would have been anti-dilutive (in thousands):
Three Months Ended June 30,Six Months Ended June 30,
2024202320242023
Stock-based compensation awards(1)
7,807 41,621 7,807 41,621 
Convertible Notes7,229 3,706 — 3,706 
Total15,036 45,327 7,807 45,327 
__________________
(1)Includes shares under the ESPP.
v3.24.2.u1
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION (Tables)
 6 Months Ended
Jun. 30, 2024
Supplemental Cash Flow Elements [Abstract]  
Supplemental disclosures of cash flow information
Changes in operating assets and liabilities affecting cash were as follows (in thousands):
Six Months Ended June 30,
20242023
USDC$(492,242)$508,752 
Accounts receivable(69,779)(36,579)
Deposits in transit(5,012)(88,680)
Income taxes, net(1,667)(7,012)
Other current and non-current assets(2,971)31,003 
Other current and non-current liabilities4,037 (80,640)
Net changes in operating assets and liabilities$(567,634)$326,844 
The following is a reconciliation of cash, cash equivalents, and restricted cash and cash equivalents (in thousands):
June 30,
20242023
Cash and cash equivalents$7,225,535 $5,166,733 
Restricted cash and cash equivalents34,282 20,697 
Customer custodial cash and cash equivalents4,015,067 3,697,031 
Total cash, cash equivalents, and restricted cash and cash equivalents$11,274,884 $8,884,461 
The following is a supplemental schedule of non-cash investing and financing activities (in thousands):
Six Months Ended June 30,
20242023
Crypto asset loan receivables originated$837,729 $— 
Crypto asset loan receivables repaid741,500 — 
Cumulative-effect adjustment due to the adoption of ASU 2023-08561,489 — 
Non-cash assets received as collateral returned372,691 86,390 
Non-cash assets received as collateral361,718 59,516 
Crypto assets borrowed225,037 272,590 
Crypto assets borrowed repaid with crypto assets100,285 304,433 
Non-cash assets pledged as collateral59,138 63,460 
Non-cash assets pledged as collateral returned47,013 42,514 
Disposal of crypto asset investments for USDC10,346 7,283 
Purchase of strategic investments with USDC7,902 2,750 
Purchase of crypto asset investments with USDC1,941 6,580 
Non-cash consideration paid for business combinations— 51,494 
Realized gains on crypto assets held for investment (prior to ASU 2023-08)— 48,491 
v3.24.2.u1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended 12 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Dec. 31, 2023
Mar. 31, 2024
Jan. 01, 2024
Mar. 31, 2023
Dec. 31, 2022
Concentration Risk [Line Items]                  
Assets held at venues $ 159,200   $ 159,200   $ 93,500        
Unrestricted cash, held at venues 97,100   97,100   88,800        
Crypto assets held for operations 46,000   46,000            
Stockholders equity 8,370,769 $ 5,754,703 8,370,769 $ 5,754,703 6,281,649 $ 8,070,994   $ 5,674,946 $ 5,454,557
Cumulative amount of fair value hedge adjustment         3,900        
Cumulative Adjustment                  
Concentration Risk [Line Items]                  
Crypto assets held         739,500        
Deferred tax liability         177,900        
Stockholders equity         561,489        
Crypto assets borrowed             $ 62,900    
Retained Earnings                  
Concentration Risk [Line Items]                  
Stockholders equity $ 3,594,230 $ 1,549,174 $ 3,594,230 $ 1,549,174 1,820,346 $ 3,558,080   $ 1,646,579 $ 1,725,475
Retained Earnings | Cumulative Adjustment                  
Concentration Risk [Line Items]                  
Stockholders equity         $ 561,489        
Accounts receivable, net | Customer Concentration Risk | Two Customers                  
Concentration Risk [Line Items]                  
Concentration risk, percentage (more than)     10.00%   10.00%        
Financing Receivable | Customer Concentration Risk | Three Customers                  
Concentration Risk [Line Items]                  
Concentration risk, percentage (more than)     10.00%   10.00%        
Loans Not Meeting Recognition Criteria | Customer Concentration Risk | Three Customers                  
Concentration Risk [Line Items]                  
Concentration risk, percentage (more than)     10.00%   10.00%        
Revenue | Customer Concentration Risk | One Customer                  
Concentration Risk [Line Items]                  
Concentration risk, percentage (more than) 10.00% 10.00% 10.00% 10.00%          
v3.24.2.u1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Changes in Presentation (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Crypto assets held     $ 0
Crypto assets held for investment     330,610
Crypto assets held for operations     74,103
Crypto assets borrowed $ 223,123 $ 231,348 45,212
Crypto assets     449,925
Previously Reported      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Crypto assets held     449,925
Crypto assets held for investment     0
Crypto assets held for operations     0
Crypto assets borrowed     0
Crypto assets     449,925
Cumulative-effect adjustment due to the adoption of Accounting Standards Update (“ASU”) 2023-08, net of tax      
New Accounting Pronouncements or Change in Accounting Principle [Line Items]      
Crypto assets held     (449,925)
Crypto assets held for investment     330,610
Crypto assets held for operations     74,103
Crypto assets borrowed     45,212
Crypto assets     $ 0
v3.24.2.u1
RESTRUCTURING (Details) - USD ($)
$ in Thousands
 1 Months Ended 3 Months Ended 6 Months Ended
Jan. 31, 2023
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Restructuring Cost and Reserve [Line Items]          
Number of positions eliminated, period percent 21.00%        
Restructuring charges   $ 0 $ (1,035) $ 0 $ 143,454
Stock-based compensation          
Restructuring Cost and Reserve [Line Items]          
Restructuring charges         84,000
Employee Severance          
Restructuring Cost and Reserve [Line Items]          
Restructuring charges         57,600
Other Restructuring          
Restructuring Cost and Reserve [Line Items]          
Restructuring charges         $ 0
v3.24.2.u1
ACQUISITIONS - Schedule of ORDAM purchase consideration (Details) - One River Digital Asset Management, LLC
$ in Thousands
Mar. 03, 2023
USD ($)
Business Acquisition [Line Items]  
Cash $ 30,830
Cash payable 1,005
Previously-held interest on acquisition date 20,000
Class A common stock of the Company 44,995
Consideration transferred $ 96,830
v3.24.2.u1
ACQUISITIONS - Narrative (Details) - One River Digital Asset Management, LLC
$ in Millions
Mar. 03, 2023
USD ($)
shares
Business Acquisition [Line Items]  
Cash subject to an indemnity holdback | $ $ 6.0
Number of shares to subject to indemnity holdback (in shares) | shares 119,991
Holdback release term 18 months
v3.24.2.u1
ACQUISITIONS - Schedule of ORDAM net assets acquired (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Mar. 03, 2023
Business Acquisition [Line Items]      
Goodwill $ 1,139,670 $ 1,139,670  
One River Digital Asset Management, LLC      
Business Acquisition [Line Items]      
Goodwill     $ 65,764
Intangible assets, net     21,100
Other assets and liabilities, net     9,966
Net assets acquired     $ 96,830
v3.24.2.u1
ACQUISITIONS - Schedule of ORDAM identifiable intangible assets acquired (Details) - One River Digital Asset Management, LLC
$ in Thousands
Mar. 03, 2023
USD ($)
Acquired Finite-Lived Intangible Assets [Line Items]  
Fair Value $ 21,100
Customer relationships  
Acquired Finite-Lived Intangible Assets [Line Items]  
Fair Value $ 17,100
Useful Life at Acquisition (in years) 6 years
Licenses  
Acquired Finite-Lived Intangible Assets [Line Items]  
Fair Value $ 1,100
IPR&D  
Acquired Finite-Lived Intangible Assets [Line Items]  
Fair Value $ 2,900
v3.24.2.u1
REVENUE - Schedule of revenue disaggregated by source (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Disaggregation of Revenue [Line Items]        
Interest and finance fee income $ 69,400 $ 51,932 $ 136,063 $ 95,245
Total revenue 1,449,628 707,911 3,087,198 1,480,440
Net revenue        
Disaggregation of Revenue [Line Items]        
Total revenue 1,379,942 662,500 2,967,619 1,398,898
Total transaction revenue        
Disaggregation of Revenue [Line Items]        
Revenue 780,902 327,098 1,857,643 701,811
Consumer, net        
Disaggregation of Revenue [Line Items]        
Revenue 664,772 288,971 1,599,984 618,123
Institutional, net        
Disaggregation of Revenue [Line Items]        
Revenue 63,624 17,061 149,016 39,372
Other transaction revenue        
Disaggregation of Revenue [Line Items]        
Revenue 52,506 21,066 108,643 44,316
Subscription and services revenue        
Disaggregation of Revenue [Line Items]        
Revenue 599,040 335,402 1,109,976 697,087
Stablecoin revenue        
Disaggregation of Revenue [Line Items]        
Revenue 240,436 151,394 437,753 350,292
Blockchain rewards        
Disaggregation of Revenue [Line Items]        
Revenue 185,139 87,613 336,068 161,363
Custodial fee revenue        
Disaggregation of Revenue [Line Items]        
Revenue 34,505 16,992 66,846 34,034
Other subscription and services revenue        
Disaggregation of Revenue [Line Items]        
Revenue 69,560 27,471 133,246 56,153
Other revenue        
Disaggregation of Revenue [Line Items]        
Total revenue 69,686 45,411 119,579 81,542
Corporate interest and other income        
Disaggregation of Revenue [Line Items]        
Corporate interest and other income $ 69,686 $ 45,411 $ 119,579 $ 81,542
v3.24.2.u1
REVENUE - Schedule of revenue disaggregated by geographic area (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Disaggregation of Revenue [Line Items]        
Total revenue $ 1,449,628 $ 707,911 $ 3,087,198 $ 1,480,440
U.S.        
Disaggregation of Revenue [Line Items]        
Total revenue 1,232,616 637,861 2,586,066 1,324,630
International        
Disaggregation of Revenue [Line Items]        
Total revenue $ 217,012 $ 70,050 $ 501,132 $ 155,810
v3.24.2.u1
COLLATERALIZED ARRANGEMENTS AND FINANCING - Summary of Prime Financing Lending Arrangements (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Loan receivables    
Fiat trade finance receivables $ 85,701 $ 0
Fiat loan receivables 247,130 171,196
Crypto asset loan receivables 107,520 22,229
Total loan receivables 440,351 193,425
Customer loans not meeting recognition criteria    
USDC $ 271,945 $ 205,645
v3.24.2.u1
COLLATERALIZED ARRANGEMENTS AND FINANCING - Narrative (Details) - USD ($)
$ in Millions
 6 Months Ended 12 Months Ended
Jun. 30, 2024
Dec. 31, 2023
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Cumulative realized gains on Crypto assets held as collateral $ 0.0  
Cumulative realized losses on Crypto assets held as collateral $ 0.0  
Crypto asset, fee percentage on borrowings 2.30% 2.00%
Cumulative realized gains on Crypto assets borrowed $ 0.0  
Cumulative realized losses on Crypto assets borrowed $ 0.0  
Minimum    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Assets pledged as collateral, percentage of fair value 100.00%  
Maximum    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Assets pledged as collateral, percentage of fair value 400.00%  
v3.24.2.u1
COLLATERALIZED ARRANGEMENTS AND FINANCING - Crypto Assets Held as Collateral and Obligation to Return (Details)
$ in Thousands
Jun. 30, 2024
USD ($)
unit
Mar. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
unit
Crypto Asset, Holding [Line Items]      
Crypto assets held as collateral, fair value $ 21,119 $ 106,610 $ 0
Obligation to return collateral, fair value 272,171   1,063
Customer collateral pledged, not recognized 1,333,686   712,644
Cost basis of crypto assets held as collateral     0
Fiat      
Crypto Asset, Holding [Line Items]      
Obligation to return collateral, fair value $ 251,052   $ 1,063
Bitcoin      
Crypto Asset, Holding [Line Items]      
Obligation to return collateral, units | unit 337   0
Obligation to return collateral, fair value $ 21,119   $ 0
Asset Pledged as Collateral      
Crypto Asset, Holding [Line Items]      
Crypto assets held as collateral, fair value $ 21,119   $ 0
Bitcoin      
Crypto Asset, Holding [Line Items]      
Crypto assets held as collateral, units | unit 8,999    
Bitcoin | Asset Pledged as Collateral      
Crypto Asset, Holding [Line Items]      
Crypto assets held as collateral, units | unit 337   0
Crypto assets held as collateral, fair value $ 21,119   $ 0
Cost basis of crypto assets held as collateral $ 23,800    
v3.24.2.u1
COLLATERALIZED ARRANGEMENTS AND FINANCING - Reconciliation of Crypto Assets Held as Collateral (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2024
Crypto Asset [Roll Forward]    
Beginning balance $ 106,610 $ 0
Collateral received 270,920 361,718
Collateral returned (357,317) (372,691)
Gains 3,606 34,792
Losses (2,700) (2,700)
Ending balance $ 21,119 $ 21,119
v3.24.2.u1
COLLATERALIZED ARRANGEMENTS AND FINANCING - Units, cost basis and fair value of crypto asset borrowings and borrowed (Details)
$ in Thousands
Jun. 30, 2024
USD ($)
unit
Mar. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Crypto assets borrowed      
Cost Basis $ 157,231    
Fair Value 223,123 $ 231,348 $ 45,212
Crypto asset borrowings      
Cost Basis 169,285    
Fair Value $ 237,474   62,980
Bitcoin      
Crypto assets borrowed      
Units | unit 2,909    
Cost Basis $ 122,740    
Fair Value $ 182,310   36,368
Crypto asset borrowings      
Units | unit 2,991    
Cost Basis $ 126,694    
Fair Value $ 187,452   50,679
Ethereum      
Crypto assets borrowed      
Units | unit 5,707    
Cost Basis $ 15,505    
Fair Value $ 19,587   3,720
Crypto asset borrowings      
Units | unit 7,226    
Cost Basis $ 19,511    
Fair Value $ 24,801   7,059
Solana      
Crypto assets borrowed      
Units | unit 48,375    
Cost Basis $ 3,850    
Fair Value $ 7,081   3,516
Crypto asset borrowings      
Units | unit 48,375    
Cost Basis $ 3,850    
Fair Value 7,081   3,513
Other crypto assets      
Crypto assets borrowed      
Cost Basis 15,136    
Fair Value 14,145   1,608
Crypto asset borrowings      
Cost Basis 19,230    
Fair Value $ 18,140   $ 1,729
v3.24.2.u1
COLLATERALIZED ARRANGEMENTS AND FINANCING - Reconciliation of crypto assets borrowed (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2024
Crypto Asset [Roll Forward]    
Beginning balance $ 231,348 $ 45,212
Additions:    
Borrowings 33,601 225,037
Customer repayment of loan receivables 426,631 711,885
Dispositions:    
Repayment of borrowings (22,834) (100,285)
Origination of loan receivables (410,928) (712,096)
Gains 0 56,841
Losses (34,695) (3,471)
Ending balance $ 223,123 $ 223,123
v3.24.2.u1
COLLATERALIZED ARRANGEMENTS AND FINANCING - Assets pledged as collateral against crypto borrowings (Details)
$ in Thousands
Jun. 30, 2024
USD ($)
unit
Dec. 31, 2023
USD ($)
unit
Crypto Asset, Holding [Line Items]    
Fair Value $ 286,959,173 $ 206,982,953
Asset Pledged as Collateral    
Crypto Asset, Holding [Line Items]    
Fair Value $ 64,005 $ 53,071
Asset Pledged as Collateral without Right    
Crypto Asset, Holding [Line Items]    
Units | unit 195,372,009 29,577,339
Fair Value $ 195,372 $ 29,577
USDC    
Crypto Asset, Holding [Line Items]    
Units | unit 64,005,096 51,879,705
USDC | Asset Pledged as Collateral    
Crypto Asset, Holding [Line Items]    
Fair Value $ 64,005 $ 51,880
Fiat | Asset Pledged as Collateral    
Crypto Asset, Holding [Line Items]    
Fair Value $ 0 $ 1,191
v3.24.2.u1
ACCOUNTS RECEIVABLE, NET (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Receivables [Abstract]    
Stablecoin revenue receivable $ 77,968 $ 57,885
Customer fee revenue receivable 34,577 23,603
In-transit customer receivables 52,436 42,562
Other accounts receivable 92,526 66,799
Gross accounts receivable 257,507 190,849
Less: allowance for doubtful accounts (21,063) (22,559)
Total accounts receivable, net $ 236,444 $ 168,290
v3.24.2.u1
CRYPTO ASSETS HELD FOR INVESTMENT - Summary of Units, Cost Basis and Fair Value (Details)
$ in Thousands
Jun. 30, 2024
USD ($)
unit
Mar. 31, 2024
USD ($)
Dec. 31, 2023
USD ($)
Crypto Asset, Holding [Line Items]      
Cost Basis $ 672,674    
Fair Value $ 1,234,158 $ 1,522,328  
Carrying value     $ 330,610
Bitcoin      
Crypto Asset, Holding [Line Items]      
Units | unit 8,999    
Cost Basis $ 215,518    
Fair Value $ 563,972    
Carrying value     126,614
Ethereum      
Crypto Asset, Holding [Line Items]      
Units | unit 112,024    
Cost Basis $ 248,722    
Fair Value 384,508    
Carrying value     129,131
Other crypto assets      
Crypto Asset, Holding [Line Items]      
Cost Basis 208,434    
Fair Value $ 285,678    
Carrying value     $ 74,865
v3.24.2.u1
CRYPTO ASSETS HELD FOR INVESTMENT - Reconciliation of Crypto Assets Held for Investment (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2024
Dec. 31, 2023
Crypto Asset [Roll Forward]      
Beginning balance   $ 330,610  
Beginning balance $ 1,522,328    
Additions 11,577 15,109  
Sales (4,898) (64,625)  
Transfers:      
(To) from Crypto assets held for operations (1,671) 300  
Origination of loan receivables (2,552) (125,633)  
Customer repayment of loan receivables 28,394 29,615  
Gain 34,593 409,545  
Loss (353,613) (78,136)  
Ending balance 1,234,158 1,234,158  
Cumulative realized losses 3,600 3,600  
Cumulative realized gains $ 13,400 $ 13,400  
Cumulative Adjustment      
Crypto Asset [Roll Forward]      
Cumulative-effect adjustment from adoption of ASU 2023-08     $ 717,373
v3.24.2.u1
CRYPTO ASSETS HELD FOR INVESTMENT - Narrative (Details)
$ in Millions
Jun. 30, 2024
USD ($)
Goodwill and Intangible Assets Disclosure [Abstract]  
Crypto asset subject to selling restriction $ 130.4
v3.24.2.u1
CUSTOMER ASSETS AND LIABILITIES - Schedule of Customers' Cash and Crypto Positions (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]    
Customer custodial funds $ 4,197,837 $ 4,570,845
Safeguarding customer crypto assets 269,198,067 192,583,060
Total customer assets 273,395,904 197,153,905
Customer custodial cash liabilities 4,197,837 4,570,845
Safeguarding customer crypto liabilities 269,198,067 192,583,060
Total customer liabilities $ 273,395,904 $ 197,153,905
v3.24.2.u1
CUSTOMER ASSETS AND LIABILITIES - Narrative (Details) - USD ($)
$ in Millions
 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]    
Losses incurred in connection with safeguarding customer crypto assets $ 0.0 $ 0.0
v3.24.2.u1
CUSTOMER ASSETS AND LIABILITIES - Fair Value of Customer Crypto Assets (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Platform Operator, Crypto Asset [Line Items]    
Fair Value $ 269,198,067 $ 192,583,060
Percentage of Total 100.00% 100.00%
Bitcoin    
Platform Operator, Crypto Asset [Line Items]    
Fair Value $ 137,375,583 $ 89,864,637
Percentage of Total 51.00% 47.00%
Ethereum    
Platform Operator, Crypto Asset [Line Items]    
Fair Value $ 58,764,013 $ 40,200,059
Percentage of Total 22.00% 21.00%
Solana    
Platform Operator, Crypto Asset [Line Items]    
Fair Value $ 17,213,869 $ 12,906,278
Percentage of Total 6.00% 6.00%
Other crypto assets    
Platform Operator, Crypto Asset [Line Items]    
Fair Value $ 55,844,602 $ 49,612,086
Percentage of Total 21.00% 26.00%
v3.24.2.u1
OTHER CONDENSED CONSOLIDATED BALANCE SHEETS DETAILS - Other current assets (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Crypto assets held for operations $ 84,232  
Crypto assets held for operations   $ 74,103
Prepaid expenses 78,275 79,552
Assets pledged as collateral 64,005 53,071
Income tax receivable 6,812 63,726
Other 19,902 16,191
Total other current assets $ 253,226 $ 286,643
v3.24.2.u1
OTHER CONDENSED CONSOLIDATED BALANCE SHEETS DETAILS - Crypto assets held for operations (Details)
$ in Thousands
Jun. 30, 2024
USD ($)
unit
Dec. 31, 2023
USD ($)
Crypto Asset, Holding [Line Items]    
Cost Basis $ 90,832  
Fair Value $ 84,232  
Carrying Value   $ 74,103
Bitcoin    
Crypto Asset, Holding [Line Items]    
Units | unit 138  
Cost Basis $ 8,278  
Fair Value $ 8,634  
Carrying Value   7,243
Ethereum    
Crypto Asset, Holding [Line Items]    
Units | unit 9,330  
Cost Basis $ 28,478  
Fair Value $ 32,025  
Carrying Value   15,775
Solana    
Crypto Asset, Holding [Line Items]    
Units | unit 107,228  
Cost Basis $ 15,615  
Fair Value 15,700  
Carrying Value   10,275
Other crypto assets    
Crypto Asset, Holding [Line Items]    
Cost Basis 38,461  
Fair Value $ 27,873  
Carrying Value   $ 40,810
v3.24.2.u1
OTHER CONDENSED CONSOLIDATED BALANCE SHEETS DETAILS - Other non-current assets (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Strategic investments $ 340,608 $ 343,045
Software and equipment, net 189,533 192,550
Intangible assets, net 70,649 86,422
Income tax receivable 55,968 0
Other 31,801 32,577
Total other non-current assets $ 688,559 $ 654,594
v3.24.2.u1
OTHER CONDENSED CONSOLIDATED BALANCE SHEETS DETAILS - Accrued expenses and other current liabilities (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Accrued payroll and payroll related expenses $ 140,445 $ 224,237
Other accrued expenses 151,747 89,254
Accounts payable 37,443 39,294
Income taxes payable 14,777 17,366
Other payables 103,758 126,032
Total accrued expenses and other current liabilities $ 448,170 $ 496,183
v3.24.2.u1
LONG-TERM DEBT - Schedule of Long Term Debt (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Debt Instrument [Line Items]      
Principal Amount $ 4,275,470   $ 3,010,470
Unamortized Debt Discount and Issuance Costs (47,451)   (30,513)
Net Carrying Amount $ 4,228,019   $ 2,979,957
Convertible Notes | 2026 Convertible Notes      
Debt Instrument [Line Items]      
Debt instrument, stated percentage 0.50%   0.50%
Effective Interest Rate 0.98%   0.98%
Principal Amount $ 1,273,013   $ 1,273,013
Unamortized Debt Discount and Issuance Costs (12,403)   (15,378)
Net Carrying Amount $ 1,260,610   $ 1,257,635
Convertible Notes | 2030 Convertible Notes      
Debt Instrument [Line Items]      
Debt instrument, stated percentage 0.25% 0.25%  
Effective Interest Rate 0.55%    
Principal Amount $ 1,265,000    
Unamortized Debt Discount and Issuance Costs (21,134)    
Net Carrying Amount $ 1,243,866    
Senior Notes | 2028 Senior Notes      
Debt Instrument [Line Items]      
Debt instrument, stated percentage 3.38%   3.38%
Effective Interest Rate 3.57%   3.57%
Principal Amount $ 1,000,000   $ 1,000,000
Unamortized Debt Discount and Issuance Costs (7,397)   (8,218)
Net Carrying Amount $ 992,603   $ 991,782
Senior Notes | 2031 Senior Notes      
Debt Instrument [Line Items]      
Debt instrument, stated percentage 3.63%   3.63%
Effective Interest Rate 3.77%   3.77%
Principal Amount $ 737,457   $ 737,457
Unamortized Debt Discount and Issuance Costs (6,517)   (6,917)
Net Carrying Amount $ 730,940   $ 730,540
v3.24.2.u1
LONG-TERM DEBT - Narrative (Details)
$ / shares in Units, $ in Thousands
 1 Months Ended 6 Months Ended
Mar. 13, 2024
USD ($)
$ / shares
May 18, 2021
USD ($)
$ / shares
Mar. 31, 2024
USD ($)
day
$ / shares
Jun. 30, 2024
USD ($)
Jun. 30, 2023
USD ($)
Dec. 31, 2023
USD ($)
Debt Instrument [Line Items]            
Proceeds from convertible debt       $ 1,246,025 $ 0  
Outstanding aggregate principal       $ 4,275,470   $ 3,010,470
Purchase of capped calls $ 104,100 $ 90,100        
Option strike price (in dollars per share) | $ / shares $ 333.54 $ 370.45        
Cap price per share (in dollars per share) | $ / shares $ 503.46 $ 478.00        
2030 Convertible Notes            
Debt Instrument [Line Items]            
Conversion ratio     0.0029981      
2030 Convertible Notes | Convertible Notes            
Debt Instrument [Line Items]            
Face amount of debt     $ 1,300,000      
Additional principal available     $ 165,000      
Debt instrument, stated percentage     0.25% 0.25%    
Proceeds from convertible debt     $ 1,200,000      
Original issue discount percentage     1.50%      
Conversion price (in dollars per share) | $ / shares     $ 333.54      
Threshold percentage of stock price trigger     130.00%      
Threshold trading days | day     20      
Threshold consecutive trading days | day     30      
Repurchase price, percentage     100.00%      
Unamortized debt issuance costs     $ 3,200      
Outstanding aggregate principal       $ 1,265,000    
Original issue discount       $ 21,100    
v3.24.2.u1
DERIVATIVES - Schedule of derivative instruments outstanding (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Not designated as hedging instruments | Accounts receivable, net    
Derivative [Line Items]    
Notional $ 28,057 $ 16,335
Derivative, Fair Value, Net 15,278 28,065
Total 43,335 44,400
Not designated as hedging instruments | Crypto asset borrowings    
Derivative [Line Items]    
Notional 169,285 12,503
Derivative, Fair Value, Net (68,189) (5,264)
Total (237,474) (17,767)
Not designated as hedging instruments | Obligation to return collateral    
Derivative [Line Items]    
Notional 23,819  
Derivative, Fair Value, Net 2,700  
Total (21,119)  
Not designated as hedging instruments | Accrued expenses and other current liabilities    
Derivative [Line Items]    
Notional 24,885 20,092
Derivative, Fair Value, Net (2,987) (590)
Total $ (27,872) (20,682)
Designated as hedging instruments | Crypto asset borrowings    
Derivative [Line Items]    
Notional   31,666
Derivative, Fair Value, Net   (13,547)
Total   $ (45,213)
v3.24.2.u1
DERIVATIVES - Schedule of derivative assets and liabilities (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets $ 26,572 $ 30,577
Gross Derivative Liabilities 79,770 21,913
Accounts receivable, net    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets 15,488 28,065
Gross Derivative Liabilities 210 0
Crypto asset borrowings    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets 6,519 1
Gross Derivative Liabilities 74,708 18,812
Obligation to return collateral    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets 2,700  
Gross Derivative Liabilities 0  
Accrued expenses and other current liabilities    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets 1,865 2,511
Gross Derivative Liabilities 4,852 3,101
Not Designated as Hedges    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets 26,572 30,602
Gross Derivative Liabilities 79,770 8,391
Not Designated as Hedges | Accounts receivable, net    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets 15,488 28,065
Gross Derivative Liabilities 210 0
Not Designated as Hedges | Crypto asset borrowings    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets 6,519 26
Gross Derivative Liabilities 74,708 5,290
Not Designated as Hedges | Obligation to return collateral    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets 2,700  
Gross Derivative Liabilities 0  
Not Designated as Hedges | Accrued expenses and other current liabilities    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets 1,865 2,511
Gross Derivative Liabilities 4,852 3,101
Designated as Hedges    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets 0 (25)
Gross Derivative Liabilities 0 13,522
Designated as Hedges | Accounts receivable, net    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets 0 0
Gross Derivative Liabilities 0 0
Designated as Hedges | Crypto asset borrowings    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets 0 (25)
Gross Derivative Liabilities 0 13,522
Designated as Hedges | Obligation to return collateral    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets 0  
Gross Derivative Liabilities 0  
Designated as Hedges | Accrued expenses and other current liabilities    
Derivative Instruments and Hedging Activities Disclosures [Line Items]    
Gross Derivative Assets 0 0
Gross Derivative Liabilities $ 0 $ 0
v3.24.2.u1
DERIVATIVES - Schedule of gains (losses) recorded in income (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Not designated as hedging instruments        
Derivative [Line Items]        
Derivatives $ 18,486 $ 7,737 $ (96,540) $ (83,943)
Hedged Items 0 333 0 97,424
Income Statement Impact 18,486 8,070 (96,540) 13,481
Crypto asset futures | Designated as hedging instruments        
Derivative [Line Items]        
Derivatives 0 5 0 (43,111)
Hedged Items 0 0 0 48,491
Income Statement Impact 0 5 0 5,380
Crypto asset borrowings | Designated as hedging instruments        
Derivative [Line Items]        
Derivatives 0 3,159 0 (88,555)
Hedged Items 0 333 0 48,933
Income Statement Impact 0 3,492 0 (39,622)
Crypto asset borrowings | Not designated as hedging instruments        
Derivative [Line Items]        
Derivatives 46,099 196 (49,815) 196
Hedged Items 0 0 0 0
Income Statement Impact 46,099 196 (49,815) 196
Accounts receivable, net | Not designated as hedging instruments        
Derivative [Line Items]        
Derivatives (25,421) 4,156 (11,626) 47,080
Hedged Items 0 0 0 0
Income Statement Impact (25,421) 4,156 (11,626) 47,080
Crypto assets pledged as collateral        
Derivative [Line Items]        
Income Statement Impact     0 (196)
Crypto assets pledged as collateral | Not designated as hedging instruments        
Derivative [Line Items]        
Derivatives 0 (196) 0 (196)
Hedged Items 0 0 0 0
Income Statement Impact 0 (196)    
Obligation to return collateral | Not designated as hedging instruments        
Derivative [Line Items]        
Derivatives (906) 0 (32,092) 0
Hedged Items 0 0 0 0
Income Statement Impact (906) 0 (32,092) 0
Accrued expenses and other current liabilities | Not designated as hedging instruments        
Derivative [Line Items]        
Derivatives (1,299) 405 (3,020) 844
Hedged Items 0 0 0 0
Income Statement Impact (1,299) 405 (3,020) 844
Other | Not designated as hedging instruments        
Derivative [Line Items]        
Derivatives 13 12 13 (201)
Hedged Items 0 0 0 0
Income Statement Impact $ 13 $ 12 $ 13 $ (201)
v3.24.2.u1
FAIR VALUE MEASUREMENTS - Schedule of fair value of assets and liabilities (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Mar. 31, 2024
Dec. 31, 2023
Jun. 30, 2023
Assets        
Cash equivalents $ 7,225,535   $ 5,139,351 $ 5,166,733
Safeguarding customer crypto assets 269,198,067   192,583,060  
Crypto assets borrowed 223,123 $ 231,348 45,212  
Crypto assets held for operations 46,000      
Crypto assets held for investment 1,234,158 $ 1,522,328    
Liabilities        
Safeguarding customer crypto liabilities 269,198,067   192,583,060  
Deposits Held at Banks        
Assets        
Cash equivalents 3,100,000   1,400,000  
Customer custodial funds 499,700   1,300,000  
Cash Held at Venues        
Assets        
Cash equivalents 97,100   88,800  
Level 1 | Fair Value, Recurring        
Assets        
Cash equivalents 4,068,451   3,682,917  
Restricted cash equivalents 16,590   0  
Customer custodial funds 3,698,168   3,301,029  
Safeguarding customer crypto assets 0   0  
Crypto asset loan receivables 0   0  
Crypto assets held as collateral 21,119   0  
Crypto assets borrowed 223,123   45,212  
Crypto assets held for operations 84,232   0  
Crypto assets held for investment 1,234,158   0  
Derivative assets 0   0  
Total assets 9,345,841   7,029,158  
Liabilities        
Safeguarding customer crypto liabilities 0   0  
Derivative liabilities 0   0  
Total liabilities 0   0  
Level 2 | Fair Value, Recurring        
Assets        
Cash equivalents 0   0  
Restricted cash equivalents 0   0  
Customer custodial funds 0   0  
Safeguarding customer crypto assets 269,198,067   192,583,060  
Crypto asset loan receivables 107,520   22,229  
Crypto assets held as collateral 0   0  
Crypto assets borrowed 0   0  
Crypto assets held for operations 0   0  
Crypto assets held for investment 0   0  
Derivative assets 26,572   30,577  
Total assets 269,332,159   192,635,866  
Liabilities        
Safeguarding customer crypto liabilities 269,198,067   192,583,060  
Derivative liabilities 79,770   21,913  
Total liabilities $ 269,277,837   $ 192,604,973  
v3.24.2.u1
FAIR VALUE MEASUREMENTS - Schedule of strategic investments (Details) - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Equity Securities without Readily Determinable Fair Value [Roll Forward]    
Beginning balance $ 330,346 $ 315,285
Net additions 11,889 4,202
Upward adjustments 3,504 62
Previously held interest in ORDAM 0 (20,000)
Impairments and downward adjustments (17,504) (7,771)
Ending balance $ 328,235 $ 291,778
v3.24.2.u1
FAIR VALUE MEASUREMENTS - Narrative (Details) - USD ($)
$ in Millions
Jun. 30, 2024
Dec. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Cumulative upward adjustments due to remeasurement of investments $ 8.4 $ 4.9
Cumulative impairments and downward adjustments due to remeasurement of investments 144.2 $ 127.0
2026 Convertible Notes | Level 2 | Convertible Notes    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value of notes 1,300.0  
2030 Convertible Notes | Level 2 | Convertible Notes    
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]    
Fair value of notes 1,200.0  
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 $ 1,400.0  
v3.24.2.u1
STOCK-BASED COMPENSATION - Schedule of stock option activity (Details)
$ / shares in Units, shares in Thousands, $ in Thousands
 6 Months Ended 12 Months Ended
Jun. 30, 2024
USD ($)
$ / shares
shares
Dec. 31, 2023
USD ($)
$ / shares
shares
Options Outstanding    
Beginning balance (in shares) | shares 28,697  
Exercised (in shares) | shares (3,515)  
Forfeited and cancelled (in shares) | shares (52)  
Ending balance (in shares) | shares 25,130 28,697
Weighted Average Exercise Price Per Share    
Options outstanding, Beginning balance (in dollars per share) | $ / shares $ 25.01  
Options exercised (in dollars per share) | $ / shares 19.59  
Options forfeited and cancelled (in dollars per share) | $ / shares 49.66  
Options outstanding, Ending balance (in dollars per share) | $ / shares $ 25.72 $ 25.01
Stock Option Activity, Additional Disclosures    
Options outstanding, Weighted average remaining contractual life 5 years 8 months 12 days 6 years 1 month 6 days
Options outstanding, Aggregate intrinsic value | $ $ 4,938,285 $ 4,295,055
Options exercisable, Number of options (in shares) | shares 18,996  
Options exercisable, Weighted average exercise price per share (in dollars per share) | $ / shares $ 26.45  
Options exercisable, Weighted average remaining contractual life 5 years 7 months 6 days  
Options exercisable, Aggregate intrinsic value | $ $ 3,719,034  
Options vested and expected to vest, Number of options (in shares) | shares 18,997  
Options vested and expected to vest, Weighted average exercise price per share (in dollars per share) | $ / shares $ 26.45  
Options vested and expected to vest, Weighted average remaining contractual life 5 years 7 months 6 days  
Options vested and expected to vest, Aggregate intrinsic value | $ $ 3,719,310  
v3.24.2.u1
STOCK-BASED COMPENSATION - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Total unrecognized compensation cost related to unvested stock options $ 42.8   $ 42.8  
Share based payment arrangement, capitalized 12.4 $ 14.9 $ 23.5 $ 29.0
Stock options        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Unrecognized compensation cost, weighted-average period of recognition     2 years 4 months 24 days  
RSUs        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Unrecognized compensation cost, weighted-average period of recognition     1 year 1 month 6 days  
Total unrecognized compensation cost 568.2   $ 568.2  
PRSUs        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Unrecognized compensation cost, weighted-average period of recognition     1 year 4 months 24 days  
Total unrecognized compensation cost 10.9   $ 10.9  
Restricted common stock        
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]        
Unrecognized compensation cost, weighted-average period of recognition     1 year 2 months 12 days  
Total unrecognized compensation cost $ 18.6   $ 18.6  
v3.24.2.u1
STOCK-BASED COMPENSATION - Schedule of restricted stock unit and restricted stock activity (Details)
shares in Thousands
 6 Months Ended
Jun. 30, 2024
$ / shares
shares
RSUs  
Number of Shares  
Beginning balance (in shares) | shares 3,016
Granted (in shares) | shares 5,239
Vested (in shares) | shares (3,143)
Forfeited and cancelled (in shares) | shares (442)
Ending balance (in shares) | shares 4,670
Weighted-Average Grant Date Fair Value Per Share  
Beginning balance, weighted-average grant date fair value per share (in dollars per share) | $ / shares $ 108.07
Granted, Weighted-average grant date fair value per share (in dollars per share) | $ / shares 144.35
Vested, Weighted-average grant date fair value per share (in dollars per share) | $ / shares 131.77
Forfeited and cancelled, Weighted-average grant date fair value per share (in dollars per share) | $ / shares 128.64
Ending balance, weighted-average grant date fair value per share (in dollars per share) | $ / shares $ 130.88
Restricted common stock  
Number of Shares  
Beginning balance (in shares) | shares 543
Vested (in shares) | shares (196)
Forfeited and cancelled (in shares) | shares (4)
Ending balance (in shares) | shares 343
Weighted-Average Grant Date Fair Value Per Share  
Beginning balance, weighted-average grant date fair value per share (in dollars per share) | $ / shares $ 114.22
Vested, Weighted-average grant date fair value per share (in dollars per share) | $ / shares 136.45
Forfeited and cancelled, Weighted-average grant date fair value per share (in dollars per share) | $ / shares 267.48
Ending balance, weighted-average grant date fair value per share (in dollars per share) | $ / shares $ 99.74
v3.24.2.u1
STOCK-BASED COMPENSATION - Schedule of performance restricted stock unit (Details)
shares in Thousands
 6 Months Ended
Jun. 30, 2024
$ / shares
shares
PRSUs  
Number of Shares  
Beginning balance (in shares) | shares 804
Vested (in shares) | shares (80)
Ending balance (in shares) | shares 724
Weighted-Average Grant Date Fair Value Per Share  
Beginning balance, weighted-average grant date fair value per share (in dollars per share) | $ / shares $ 55.42
Vested, Weighted-average grant date fair value per share (in dollars per share) | $ / shares 55.42
Ending balance, weighted-average grant date fair value per share (in dollars per share) | $ / shares $ 55.42
Restricted common stock  
Number of Shares  
Beginning balance (in shares) | shares 543
Vested (in shares) | shares (196)
Ending balance (in shares) | shares 343
Weighted-Average Grant Date Fair Value Per Share  
Beginning balance, weighted-average grant date fair value per share (in dollars per share) | $ / shares $ 114.22
Vested, Weighted-average grant date fair value per share (in dollars per share) | $ / shares 136.45
Ending balance, weighted-average grant date fair value per share (in dollars per share) | $ / shares $ 99.74
v3.24.2.u1
STOCK-BASED COMPENSATION - Schedule of stock based compensation (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Stock based compensation expense $ 217,934 $ 199,772 $ 442,438 $ 482,674
Technology and development        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Stock based compensation expense 133,622 123,469 273,452 246,165
Sales and marketing        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Stock based compensation expense 16,691 14,930 33,314 29,139
General and administrative        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Stock based compensation expense 67,621 61,373 135,672 123,328
Restructuring        
Share-based Payment Arrangement, Expensed and Capitalized, Amount [Line Items]        
Stock based compensation expense $ 0 $ 0 $ 0 $ 84,042
v3.24.2.u1
OTHER EXPENSE (INCOME), NET (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Other Income and Expenses [Abstract]        
Strategic investment losses, net $ 13,814 $ 3,839 $ 14,663 $ 10,158
Losses on other financial instruments, net 24,584 0 11,398 0
Losses on crypto asset loan receivables 34,010 0 8,484 0
Foreign exchange (gains) losses, net (321) (3,344) 1,330 10,534
Other (8,260) (17,059) (17,653) (16,991)
Total other expense (income), net $ 63,827 $ (16,564) $ 18,222 $ 3,701
v3.24.2.u1
INCOME TAXES (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Dec. 31, 2023
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Effective income tax rate 160.00% (23.80%) 12.00% 27.90%  
U.S. statutory rate 21.00%   21.00%    
Net deferred tax asset $ 1,010,154   $ 1,010,154   $ 1,272,233
Deferred income taxes     $ 84,000    
Cumulative Adjustment          
New Accounting Pronouncements or Change in Accounting Principle [Line Items]          
Deferred tax liability         $ 177,900
v3.24.2.u1
NET INCOME (LOSS) PER SHARE - Schedule of net income (loss) per share (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Numerator        
Net income (loss) $ 36,150 $ (97,405) $ 1,212,395 $ (176,301)
Less: Income allocated to participating shares (23) 0 (784) 0
Net income (loss) attributable to common stockholders, basic $ 36,127 $ (97,405) $ 1,211,611 $ (176,301)
Denominator        
WASO - basic (in shares) 246,298 234,614 244,546 233,060
Net income (loss) per share attributable to common stockholders, basic (in dollars per share) $ 0.15 $ (0.42) $ 4.95 $ (0.76)
Numerator        
Net income (loss) $ 36,150 $ (97,405) $ 1,212,395 $ (176,301)
Add: Interest on the Convertible Notes, net of tax 0 0 6,145 0
Less: Income allocated to participating shares (22) 0 (711) 0
Less: Fair value gain on contingent consideration arrangement, net of tax 0 (196) 0 (196)
Net income (loss) attributable to common stockholders, diluted $ 36,128 $ (97,601) $ 1,217,829 $ (176,497)
Denominator        
WASO - basic (in shares) 246,298 234,614 244,546 233,060
Weighted-average effect of potentially dilutive shares:        
Convertible Notes (in shares) 0 0 5,687 0
Contingent consideration (in shares) 0 27 0 27
WASO - diluted (in shares) 266,831 234,641 271,003 233,087
Net income (loss) per share attributable to common stockholders, diluted (in dollars per share) $ 0.14 $ (0.42) $ 4.49 $ (0.76)
Stock options        
Weighted-average effect of potentially dilutive shares:        
Share-based payment arrangements (in shares) 17,254 0 17,894 0
RSUs        
Weighted-average effect of potentially dilutive shares:        
Share-based payment arrangements (in shares) 2,672 0 2,250 0
PRSUs        
Weighted-average effect of potentially dilutive shares:        
Share-based payment arrangements (in shares) 350 0 343 0
Restricted common stock        
Weighted-average effect of potentially dilutive shares:        
Share-based payment arrangements (in shares) 257 0 283 0
v3.24.2.u1
NET INCOME (LOSS) PER SHARE - Schedule of potentially dilutive shares (Details) - shares
shares in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Number of shares excluded in the computation of diluted earnings per share 15,036 45,327 7,807 45,327
Stock-based compensation awards        
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]        
Number of shares excluded in the computation of diluted earnings per share 7,807 41,621 7,807 41,621
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 7,229 3,706 0 3,706
v3.24.2.u1
COMMITMENTS AND CONTINGENCIES (Details)
$ in Millions
 1 Months Ended 2 Months Ended
Jan. 31, 2023
USD ($)
Aug. 31, 2021
class_action_case
Commitments and Contingencies Disclosure [Abstract]    
Number of purported securities class actions filed | class_action_case   3
Penalty awarded $ 50.0  
Amount to be invested in company compliance function $ 50.0  
v3.24.2.u1
RELATED PARTY TRANSACTIONS (Details) - USD ($)
$ in Thousands
 3 Months Ended 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Jun. 30, 2024
Jun. 30, 2023
Dec. 31, 2023
Related Party Transaction [Line Items]          
Revenue $ 1,449,628 $ 707,911 $ 3,087,198 $ 1,480,440  
Safeguarding customer crypto assets 269,198,067   269,198,067   $ 192,583,060
Safeguarding customer crypto liabilities 269,198,067   269,198,067   192,583,060
Customer custodial funds 4,197,837   4,197,837   4,570,845
Customer custodial cash liabilities 4,197,837   4,197,837   4,570,845
Strategic investments 340,608   340,608   343,045
Related Party          
Related Party Transaction [Line Items]          
Revenue 6,700 4,000 13,600 7,100  
Amounts receivable from customers, net of allowance 3,800   3,800   3,400
Safeguarding customer crypto assets 9,600,000   9,600,000   8,800,000
Safeguarding customer crypto liabilities 9,600,000   9,600,000   8,800,000
Customer custodial funds 10,400   10,400   348,000
Customer custodial cash liabilities 10,400   10,400   348,000
Strategic investments 3,300   3,300   $ 4,000
Professional and consulting services $ 300 $ 0 $ 1,400 $ 0  
v3.24.2.u1
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION - Changes in Operating Assets and Liabilities (Details) - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Supplemental Cash Flow Elements [Abstract]    
USDC $ (492,242) $ 508,752
Accounts receivable (69,779) (36,579)
Deposits in transit (5,012) (88,680)
Income taxes, net (1,667) (7,012)
Other current and non-current assets (2,971) 31,003
Other current and non-current liabilities 4,037 (80,640)
Net changes in operating assets and liabilities $ (567,634) $ 326,844
v3.24.2.u1
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION - Reconciliation of Cash, Cash Equivalents, and Restricted Cash and Cash Equivalents (Details) - USD ($)
$ in Thousands
Jun. 30, 2024
Dec. 31, 2023
Jun. 30, 2023
Dec. 31, 2022
Supplemental Cash Flow Elements [Abstract]        
Cash and cash equivalents $ 7,225,535 $ 5,139,351 $ 5,166,733  
Restricted cash and cash equivalents 34,282 22,992 20,697  
Customer custodial cash and cash equivalents 4,015,067   3,697,031  
Total cash, cash equivalents, and restricted cash and cash equivalents $ 11,274,884 $ 9,555,429 $ 8,884,461 $ 9,429,646
v3.24.2.u1
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION - Non-cash Investing and Financing Activities (Details) - USD ($)
$ in Thousands
 6 Months Ended
Jun. 30, 2024
Jun. 30, 2023
Supplemental Cash Flow Elements [Abstract]    
Crypto asset loan receivables originated $ 837,729 $ 0
Crypto asset loan receivables repaid 741,500 0
Cumulative-effect adjustment due to the adoption of ASU 2023-08 561,489 0
Non-cash assets received as collateral returned 372,691 86,390
Non-cash assets received as collateral 361,718 59,516
Crypto assets borrowed 225,037 272,590
Crypto assets borrowed repaid with crypto assets 100,285 304,433
Non-cash assets pledged as collateral 59,138 63,460
Non-cash assets pledged as collateral returned 47,013 42,514
Disposal of crypto asset investments for USDC 10,346 7,283
Purchase of strategic investments with USDC 7,902 2,750
Purchase of crypto asset investments with USDC 1,941 6,580
Non-cash consideration paid for business combinations 0 51,494
Realized gains on crypto assets held for investment (prior to ASU 2023-08) $ 0 $ 48,491