PREPAID EXPENSES AND OTHER ASSETS

6 Months Ended

Jun. 30, 2023

Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]

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

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(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

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(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%.