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PREPAID EXPENSES AND OTHER ASSETS | 6 Months Ended
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Jun. 30, 2023
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):
| June 30, |  | December 31,
| 2023 |  | 2022
Prepaid expenses and other current assets |  |  |
Prepaid expenses | $ | 80,725 |  |  | $ | 98,204 |
Assets pledged as collateral(1) | 79,409 |  |  | 100,007 |
Other | 15,265 |  |  | 18,837 |
Total prepaid expenses and other current assets | $ | 175,399 |  |  | $ | 217,048 |
Other non-current assets |  |  |
Strategic investments | $ | 304,786 |  |  | $ | 326,683 |
Deferred tax assets | 1,127,318 |  |  | 1,046,791 |
Deposits | 11,523 |  |  | 10,989 |
Other | 7,570 |  |  | 17,257 |
Total other non-current assets | $ | 1,451,197 |  |  | $ | 1,401,720 |
_______________ (1) See Note 11. Collateral for additional details on assets pledged as collateral. 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):
|  |  | Six Months Ended June 30,
|  |  |  |  | 2023 |  | 2022
Carrying amount, beginning of period |  |  |  |  | $ | 315,285 |  |  | $ | 352,431 |
Net additions(1) |  |  |  |  | 4,202 |  |  | 47,208 |
Upward adjustments |  |  |  |  | 62 |  |  | 879 |
Previously held interest in ORDAM (see Note 4) |  |  |  |  | (20,000) |  |  | — |
Impairments and downward adjustments |  |  |  |  | (7,771) |  |  | (69,054) |
Carrying amount, end of period(2) |  |  |  |  | $ | 291,778 |  |  | $ | 331,464 |
__________________ (1)Net additions include additions from purchases and reductions due to exits of securities and reclassifications due to changes to capital structure. (2)Excludes $13.0 million and $19.4 million as of June 30, 2023 and 2022, 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 (income) expense, net in the condensed consolidated statements of operations. As of June 30, 2023, cumulative upward adjustments were $4.9 million and cumulative impairments and downward adjustments were $109.6 million. As of December 31, 2022, cumulative upward adjustments and cumulative impairments and downward adjustments were $4.9 million and $102.0 million, respectively. During the six months ended June 30, 2023 and 2022, the Company invested an aggregate of $1.9 million and $3.9 million, respectively, in investees in which certain related parties of the Company held an interest over 10%.

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