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GOODWILL, INTANGIBLE ASSETS, NET AND CRYPTO ASSETS HELD | 9 Months Ended
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Sep. 30, 2023
Goodwill and Intangible Assets Disclosure [Abstract] |
GOODWILL, INTANGIBLE ASSETS, NET AND CRYPTO ASSETS HELD | GOODWILL, INTANGIBLE ASSETS, NET AND CRYPTO ASSETS HELD Goodwill The following table reflects the changes in the carrying amount of goodwill (in thousands):
| Nine Months Ended September 30, 2023 |  | Year Ended December 31, 2022
Balance, beginning of period | $ | 1,073,906 |  |  | $ | 625,758 |
Additions due to business combinations | 65,764 |  |  | 454,417 |
Measurement period adjustments(1) | — |  |  | (6,269) |
Balance, end of period | $ | 1,139,670 |  |  | $ | 1,073,906 |
__________________ (1)The measurement period adjustments during the year ended December 31, 2022 consisted of $4.1 million, $0.3 million and $1.9 million related to the Unbound acquisition, FairX acquisition and certain other acquisitions that were material when aggregated, respectively, and which were associated with the changes in deferred tax assets as a result of changes in estimates. There were no measurement period adjustments during the three and nine months ended September 30, 2023. There was no impairment recognized against goodwill at the beginning or end of the periods presented. Intangible assets, net Intangible assets, net consisted of the following (in thousands, except years data):
As of September 30, 2023 | Gross Carrying Amount |  | Accumulated Amortization |  | Intangible Assets, Net |  | Weighted Average Remaining Useful Life (in Years)
Amortizing intangible assets |  |  |  |  |  |  |
Acquired developed technology | $ | 119,991 |  |  | $ | (102,348) |  |  | $ | 17,643 |  |  | 3.1
User base | 2,997 |  |  | (2,943) |  |  | 54 |  |  | 0.1
Customer relationships | 103,791 |  |  | (61,014) |  |  | 42,777 |  |  | 3.3
Non-compete agreement | 2,402 |  |  | (2,002) |  |  | 400 |  |  | 0.8
Trade relationships | 3,400 |  |  | (1,889) |  |  | 1,511 |  |  | 1.3
IPR&D(1) | 4,300 |  |  | — |  |  | 4,300 |  |  | N/A
Indefinite-lived intangible assets |  |  |  |  |  |  |
Domain name | 250 |  |  | — |  |  | 250 |  |  | N/A
Licenses | 28,000 |  |  | — |  |  | 28,000 |  |  | N/A
Total | $ | 265,131 |  |  | $ | (170,196) |  |  | $ | 94,935 |  |  |
__________________ (1)Amortization begins once the technology is placed in service. IPR&D is expected to have a useful life of three years once placed in service.
As of December 31, 2022 | Gross Carrying Amount |  | Accumulated Amortization |  | Intangible Assets, Net |  | Weighted Average Remaining Useful Life (in Years)
Amortizing intangible assets |  |  |  |  |  |  |
Acquired developed technology | $ | 126,692 |  |  | $ | (81,172) |  |  | $ | 45,520 |  |  | 2.3
User base | 2,997 |  |  | (2,154) |  |  | 843 |  |  | 0.8
Customer relationships | 86,691 |  |  | (45,717) |  |  | 40,974 |  |  | 2.6
Non-compete agreement | 2,402 |  |  | (1,641) |  |  | 761 |  |  | 1.6
Assembled workforce | 60,800 |  |  | (44,857) |  |  | 15,943 |  |  | 0.4
Trade relationships | 3,400 |  |  | (1,039) |  |  | 2,361 |  |  | 2.1
IPR&D(1) | 1,877 |  |  | — |  |  | 1,877 |  |  | N/A
Indefinite-lived intangible assets |  |  |  |  |  |  |
Domain name | 250 |  | — |  |  | 250 |  | N/A
Licenses | 26,900 |  |  | — |  |  | 26,900 |  |  | N/A
Total | $ | 312,009 |  |  | $ | (176,580) |  |  | $ | 135,429 |  |  |
__________________ (1)Amortization begins once the technology is placed in service. IPR&D is expected to have a useful life of three years once placed in service. Amortization expense of intangible assets was $13.2 million and $61.1 million for the three and nine months ended September 30, 2023, respectively. Amortization expense of intangible assets was $27.7 million and $80.0 million for the three and nine months ended September 30, 2022, respectively. The Company estimates that there is no significant residual value related to its amortizing intangible assets. During the nine months ended September 30, 2023, the Company recorded impairment charges of $0.5 million related to its intangible assets, excluding crypto assets held. The Company did not record any impairment charges related to its intangible assets, excluding crypto assets held, during the three months ended September 30, 2023. During the three and nine months ended September 30, 2022, the Company recorded impairment charges of $0.1 million and $4.5 million, respectively, related to its intangible assets, excluding crypto assets held. Impairment expense is included in technology and development expense. The expected future amortization expense for amortizing intangible assets other than IPR&D as of September 30, 2023 is as follows (in thousands):
2023 (for the remainder of) | $ | 8,197 |
2024 | 24,216 |
2025 | 15,966 |
2026 | 7,665 |
2027 | 3,026 |
Thereafter | 3,315 |
Total expected future amortization expense | $ | 62,385 |
Crypto assets held Crypto assets held consisted of the following (in thousands):
| September 30, |  | December 31,
| 2023 |  | 2022
Recorded at impaired cost |  |  |
Crypto assets held as investments | $ | 310,873 |  |  | $ | 155,251 |
Crypto assets held for operating purposes | 82,003 |  |  | 67,577 |
Crypto assets borrowed | 6,546 |  |  | — |
Total crypto assets held recorded at impaired cost | 399,422 |  |  | 222,828 |
Recorded at fair value(1) |  |  |
Crypto assets held as investments | — |  |  | 133,416 |
Crypto assets held for operating purposes | 6,672 |  |  | — |
Crypto assets borrowed | 49,892 |  |  | 68,149 |
Total crypto assets held recorded at fair value | 56,564 |  |  | 201,565 |
Total crypto assets held | $ | 455,986 |  |  | $ | 424,393 |
__________________ (1)Recorded at fair value as these crypto assets are held as the hedged item in qualifying fair value hedges.
| Three Months Ended September 30, |  | Nine Months Ended September 30, |  |  |  |  |
| 2023 |  | 2022 |  | 2023 |  | 2022 |  |  |  |  |
| (in thousands) | (in thousands) |  |
Gross crypto asset impairment expense | $ | 22,868 |  |  | $ | 25,918 |  |  | $ | 77,151 |  |  | $ | 689,077 |  |  |  |  |  |
Recoveries | (15,688) |  |  | (13,768) |  |  | (60,062) |  |  | (34,115) |  |  |  |  |  |
Crypto asset impairment, net | $ | 7,180 |  |  | $ | 12,150 |  |  | $ | 17,089 |  |  | $ | 654,962 |  |  |  |  |  |
The Company records gross impairment cha rges when the observed market price of crypto assets held decreases below the carrying value. The Company may later recover impairments through subsequent crypto asset sales and disposals. Collectively, these activities are shown as crypto asset impairment, net in the Company’s condensed consolidated statements of operations. See Note 13. Derivatives, for additional details regarding crypto assets held designated as hedged items in fair value hedges. See Note 14. Fair Value Measurements, for additional details regarding the carrying value of the Company’s crypto assets held. When the Company borrows crypto assets, it may be required to pledge collateral to maintain a required collateral percentage. See Note 11. Collateral for additional details regarding assets pledged as collateral.

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