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Strategic Investments | 12 Months Ended
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Dec. 31, 2024
Investments, Debt and Equity Securities [Abstract] |
Strategic Investments | Strategic Investments Strategic investments include equity and debt investments in a number of non-public technology driven companies. We generally account for strategic equity investments under the ASC 321 measurement alternative for equity securities without readily determinable fair values, as there are no quoted market prices for the equity investments. The equity investments are measured at cost less impairment, adjusted for observable price changes and are assessed for impairment whenever events or changes in circumstances indicate that the fair value may be less than its carrying value. For the debt security strategic investment, we have elected to account for this investment and the associated embedded derivatives utilizing the fair value option. Unrealized changes in fair value for the entire hybrid instrument are recorded within other income (loss), net in the consolidated statement of operations. In conjunction with certain of our strategic investments, we may have the ability to commit additional capital over time through warrants and call options; for some investments, the exercisability and exercise prices are conditional on the achievement of certain performance metrics. Depending on their contractual terms, our warrants and call options may be accounted for under either the ASC 321 measurement alternative or as derivative instruments under ASC 815. The following tables provide a roll-forward of the balance of strategic investments (in thousands):
| Year Ended December 31, 2024 |  | Year Ended December 31, 2023
| Equity investments |  | Warrants |  | Call options |  | Debt investments |  | Total |  | Equity investments |  | Warrants |  | Call Options |  | Total
Balance, beginning of period | $ | 212,996 |  |  | $ | 1,501 |  |  | $ | 17,233 |  |  | $ | — |  |  | $ | 231,730 |  |  | $ | 277,676 |  |  | $ | 1,654 |  |  | $ | 17,233 |  |  | $ | 296,563 |
Investments | 103,888 |  |  | 2,012 |  |  | — |  |  | 7,500 |  |  | 113,400 |  |  | 15,016 |  |  | 1,176 |  |  | — |  |  | 16,192 |
Fair value adjustments: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Realized gains (losses) during the period, net | 95,429 |  |  | — |  |  | (4,279) |  |  | — |  |  | 91,150 |  |  | — |  |  | — |  |  | — |  |  | — |
Unrealized gains on strategic investments still held at the reporting date | 74,784 |  |  | 855 |  |  | — |  |  | 1,084 |  |  | 76,723 |  |  | — |  |  | — |  |  | — |  |  | — |
Unrealized losses on strategic investments still held at the reporting date | (4,093) |  |  | — |  |  | (893) |  |  | — |  |  | (4,986) |  |  | (81,196) |  |  | (1,329) |  |  | — |  |  | (82,525) |
Exercises | (163,406) |  |  | — |  |  | (12,061) |  |  | — |  |  | (175,467) |  |  | 1,500 |  |  | — |  |  | — |  |  | 1,500 |
Balance, end of period | $ | 319,598 |  |  | $ | 4,368 |  |  | $ | — |  |  | $ | 8,584 |  |  | $ | 332,550 |  |  | $ | 212,996 |  |  | $ | 1,501 |  |  | $ | 17,233 |  |  | $ | 231,730 |
During the year ended December 31, 2024, we exercised call options and acquired the remaining outstanding stock of two strategic investments - Fusus L.L.C. ("Fusus") and Dedrone Holdings, Inc. ("Dedrone"). Our pre-existing interests had fair values at the acquisition dates of $63.3 million and $112.2 million, respectively. The acquisitions of Fusus and Dedrone resulted in net non-taxable gains of $42.3 million and $51.6 million related to the existing strategic equity investments an d call options in Fusus and Dedrone, respectively. For additional discussion, refer to Note 21. Additionally, as a result of an observable price change for a separate strategic investee, we recognized an unrealized gain of $75.6 million for the strategic investment and related warrants in other income (loss), net on our consolidated statement of operations during the year ended December 31, 2024. For the debt security strategic investment, we recognized an unrealized gain of $1.1 million for the entire hybrid instrument in other income (loss), net on our consolidated statement of operations during the year ended December 31, 2024.
| Inception to date
| Equity investments |  | Warrants |  | Call options |  | Debt investments |  | Total
Investments | $ | 325,105 |  |  | $ | 6,235 |  |  | $ | 17,232 |  |  | $ | 7,500 |  |  | $ | 356,072 |
Fair value adjustments: |  |  |  |  |  |  |  |  |
Realized gains (losses) on strategic investment transactions, net | 107,741 |  |  | — |  |  | (4,279) |  |  | — |  |  | 103,462 |
Cumulative unrealized gains (losses) | 63,203 |  |  | 88,298 |  |  | (893) |  |  | 1,084 |  |  | 151,692 |
Exercises | (161,905) |  |  | (90,165) |  |  | (12,060) |  |  | — |  |  | (264,130) |
Sales | (14,546) |  |  | — |  |  | — |  |  | — |  |  | (14,546) |
Balance, end of period | $ | 319,598 |  |  | $ | 4,368 |  |  | $ | — |  |  | $ | 8,584 |  |  | $ | 332,550 |
Strategic investment cumulative unrealized net gains are comprised of upward adjustments of $240.7 million and downward adjustments and impairments of $89.0 million.

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