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FAIR VALUE MEASUREMENTS
 9 Months Ended
Sep. 30, 2022
Fair Value Disclosures [Abstract]  
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS
The following table sets forth by level, within the fair value hierarchy, the Company’s assets and liabilities measured and recorded at fair value on a recurring basis (in thousands):
September 30, 2022
Level 1Level 2Level 3Total
Assets
Cash equivalents(1)
$2,282,077 $— $— $2,282,077 
Customer custodial cash(2)
1,226,646 — — 1,226,646 
Crypto assets held(3)
209,972 — — 209,972 
Derivative assets(4)
— 30,776 — 30,776 
Customer crypto assets— 95,113,124 — 95,113,124 
Total assets$3,718,695 $95,143,900 $— $98,862,595 
Liabilities
Derivative liabilities(4)
$— $12,679 $— $12,679 
Contingent consideration arrangement— — 4,213 4,213 
Customer crypto liabilities— 95,113,124 — 95,113,124 
Total liabilities$— $95,125,803 $4,213 $95,130,016 
December 31, 2021
Level 1Level 2Level 3Total
Assets
Cash equivalents(1)
$4,813,621 $— $— $4,813,621 
Customer custodial cash(2)
3,566,072 — — 3,566,072 
Crypto assets held(3)
— 421,685 — 421,685 
Derivative assets(4)
— 345,429 — 345,429 
Total assets$8,379,693 $767,114 $— $9,146,807 
Liabilities
Derivative liabilities(4)
$— $93,616 $— $93,616 
Contingent consideration arrangement— — 14,828 14,828 
Total liabilities$— $93,616 $14,828 $108,444 
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(1)Represents money market funds. Excludes $2.6 billion of corporate cash held in deposit at banks and $167.8 million held at venues, which were not measured and recorded at fair value as of September 30, 2022. Excludes $2.1 billion of corporate cash held in deposit at banks and $168.9 million held at venues, which were not measured and recorded at fair value as of December 31, 2021.
(2)Represents money market funds. Excludes customer custodial cash of $5.4 billion and $7.0 billion held in deposit at financial institutions and not measured and recorded at fair value as of September 30, 2022 and December 31, 2021, respectively.
(3)Includes crypto assets held that have been designated as hedged items in fair value hedges and excludes crypto assets of $413.1 million and $566.5 million held at cost as of September 30, 2022 and December 31, 2021, respectively.
(4)See Note 12. Derivatives for additional details.

The Company did not make any transfers into or out of Level 3 of the fair value hierarchy during the nine months ended September 30, 2022 and the year ended December 31, 2021.
Customer crypto assets and liabilities represent the Company’s obligation to safeguard customers’ crypto assets. Accordingly, the Company has valued the assets and liabilities using quoted market prices for the underlying crypto assets which is based on Level 2 inputs.
Assets and liabilities measured and recorded at fair value on a non-recurring basis
The Company’s non-financial assets, such as goodwill, intangible assets, property and equipment, and crypto assets held but not designated in hedging relationships are adjusted to fair value when an impairment charge is recognized. The Company’s strategic investments are also measured at fair value on a non-recurring basis. Such fair value measurements are based predominantly on Level 3 inputs. The carrying value of the Company’s strategic investments is adjusted based on an Option-Pricing Model that uses publicly available market data of comparable companies and other unobservable inputs including expected volatility, expected time to liquidity, adjustments for other company-specific developments, and the rights and obligations of the securities the Company holds. Fair value of crypto assets held are predominantly based on Level 1 inputs.
Assets and liabilities not measured and recorded at fair value
The Company’s financial instruments, including certain cash and cash equivalents, restricted cash, certain customer custodial cash, USDC, customer custodial cash liabilities, short-term borrowings and loans receivable are carried at amortized cost, which approximates their fair value. If these financial instruments were recorded at fair value, they would be based on Level 1 inputs, except for short-term borrowings and loans receivable which would be based on Level 2 and Level 3 inputs, respectively.
The Company estimates the fair value of its 2026 Convertible Notes and Senior Notes based on quoted prices in markets that are not active, which is considered a Level 2 valuation input. As of September 30, 2022, the estimated fair value of the 2026 Convertible Notes and Senior Notes were $951.5 million and $1.17 billion, respectively.