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PREPAID EXPENSES AND OTHER ASSETS | 9 Months Ended
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Sep. 30, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract] |
PREPAID EXPENSES AND OTHER ASSETS | PREPAID EXPENSES AND OTHER ASSETS Prepaid expenses and other current assets, and other non-current assets consisted of the following (in thousands):
| September 30, |  | December 31,
| 2022 |  | 2021
Prepaid expenses and other current assets |  |  |
Prepaid expenses | $ | 91,366 |  |  | $ | 123,246 |
Deposits | 2,524 |  |  | 9,658 |
Fair value adjustments related to foreign currency forward contracts(1) | 22,935 |  |  | — |
Cash collateral posted against foreign currency forward contracts(1) | 145,000 |  |  | — |
Other | 15,219 |  |  | 2,945 |
Total prepaid expenses and other current assets | $ | 277,044 |  |  | $ | 135,849 |
Other non-current assets |  |  |
Strategic investments | $ | 357,042 |  |  | $ | 363,950 |
Deferred tax assets | 1,014,736 |  |  | 573,547 |
Deposits | 10,542 |  |  | 13,347 |
Other | 41 |  |  | 1,463 |
Total other non-current assets | $ | 1,382,361 |  |  | $ | 952,307 |
__________________ (1)See Note 12. Derivatives for additional details. Strategic investments The Company makes strategic investments in various companies and technologies through Coinbase Ventures. Strategic investments primarily include equity investments in privately held companies without readily determinable fair values where the Company (1) holds less than 20% ownership in the entity, and (2) does not exercise significant influence, and accordingly, these investments are recorded at cost and adjusted for observable transactions for same or similar investments of the same issuer (referred to as the measurement alternative) and impairment. The changes in the carry value of strategic investments accounted for under the measurement alternative are presented below (in thousands):
|  |  | Nine Months Ended September 30,
|  |  |  |  | 2022 |  | 2021
Carrying amount, beginning of period |  |  |  |  | $ | 352,431 |  |  | $ | 26,146 |
Net additions(1) |  |  |  |  | 57,058 |  |  | 242,196 |
Upward adjustments |  |  |  |  | 879 |  |  | 3,084 |
Previously held interest in Bison Trails (see Note 4) |  |  |  |  | — |  |  | (2,000) |
Impairments and downward adjustments |  |  |  |  | (70,631) |  |  | (50) |
Carrying amount, end of period(2) |  |  |  |  | $ | 339,737 |  |  | $ | 269,376 |
__________________ (1)Net additions include additions from purchases and reductions due to exits of securities and reclassifications due to changes to capital structure. (2)Excludes $17.3 million and $10.5 million as of September 30, 2022 and September 30, 2021, respectively, of strategic investments that are not accounted for under the measurement alternative. Upward adjustments, impairments and downward adjustments from remeasurement of investments are included in other expense, net in the condensed consolidated statements of operations. As of September 30, 2022, cumulative upward adjustments were $4.8 million and cumulative impairments and downward adjustments were $71.5 million. As of December 31, 2021, cumulative upward adjustments and cumulative impairments and downward adjustments were $4.6 million and $0.5 million, respectively. During the nine months ended September 30, 2022 and September 30, 2021, the Company invested an aggregate of $14.4 million and $150.0 million, respectively, in investees in which certain related parties of the Company held an interest over 10%.

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