
	September 30, 2021		December 31, 2020

Loans held for investment, net of allowance for loan losses (i)	$	79,482	$	—
Inventory, net	73,413		61,129
Restricted cash	14,420		30,279
Processing costs receivable	215,886		148,606
Prepaid expenses	70,591		34,279
Accounts receivable, net	78,401		41,960
Other	77,340		66,814
Total	$	609,533	$	383,067

(i) In April 2021, the Company began originating loans in the U.S. through its wholly-owned subsidiary bank, Square Financial Services, Inc., and discontinued a prior arrangement with an industrial bank partner. Refer to Note 6, Loans Held for Investment for further details.

The following table presents the detail of accrued expenses and other current liabilities (in thousands):


	September 30, 2021		December 31, 2020
Accrued expenses	$	231,853	$	126,710
Square Payroll payable (i)	68,959		16,990
Accrued royalties	51,747		—
Accrued transaction losses (ii)	47,737		70,557
Accounts payable	94,215		47,089
Customer deposits	40,092		—
Deferred revenue, current	51,655		44,908
Current portion of long-term debt	4,637		—
Other	63,600		54,596
Total	$	654,495	$	360,850

(i) Square Payroll payable represents amounts received from Square Payroll product customers that will be utilized to settle the customers' employee payroll and related obligations.

(ii) The Company is exposed to potential credit losses related to transactions processed by sellers that are subsequently subject to chargebacks when the Company is unable to collect from the sellers primarily due to insolvency. Generally, the Company estimates the potential loss rates based on historical experience that is continuously adjusted for new information and incorporates, where applicable, reasonable and supportable forecasts about future expectations.

The following table summarizes the activities of the Company’s reserve for transaction losses (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
Accrued transaction losses, beginning of the period	$	48,480	$	109,061	$	70,557	$	34,771
Provision for transaction losses	17,364		(4,549)		38,406		107,524
Charge-offs to accrued transaction losses	(18,107)		(17,577)		(61,226)		(55,360)
Accrued transaction losses, end of the period	$	47,737	$	86,935	$	47,737	$	86,935

In addition to amounts reflected in the table above, the Company recognized additional provision for transaction losses that were realized and written-off within the same period. The Company recorded $89.8 million and $252.2 million for the three and nine months ended September 30, 2021, respectively, compared to $103.9 million and $200.9 million for the three and nine months ended September 30, 2020, respectively, for such losses.


	September 30, 2021		December 31, 2020
Investment in non-marketable equity securities (i)	$	82,181	$	32,510
Investment in marketable equity security (ii)	—		376,258
Investment in bitcoin, net (iii)	148,910		50,000
Restricted cash	73,420		13,526
Other	79,997		26,956
Total	$	384,508	$	499,250

(i) Investment in non-marketable equity securities includes the Company's investments in equity instruments of non-public entities. These investments are measured using the measurement alternative and are therefore carried at cost, less impairment, adjusted for observable price changes. Additionally, the Company holds a non-marketable common stock warrant in a public entity. The warrant is carried at fair value, with changes in fair value being recorded within other expense (income), net on the condensed consolidated statement of operations. During the three and nine months ended September 30, 2021, the Company recorded a net loss of $6.8 million, arising from the revaluation of the non-marketable investments.

(ii) In December 2020, upon completion of the initial public offering of DoorDash Inc. ("DoorDash"), the shares of preferred stock held by the Company converted into Class A common stock of DoorDash. The investment was carried at fair value, with changes in fair value being recorded within other income or expense on the condensed consolidated statement of operations. During the nine months ended September 30, 2021, the Company recorded a net gain of $44.4 million, arising from the revaluation of the investment. In June 2021, the Company completed the sale of its remaining investment in DoorDash, which will have no further impact on the Company's results in future periods.

(iii) The Company invested $50.0 million and $170.0 million in bitcoin in the fourth quarter of 2020 and the first quarter of 2021, respectively. Bitcoin is accounted for as an indefinite lived intangible asset, and thus, is subject to impairment losses if the fair value of bitcoin decreases below the carrying value during the assessed period. Impairment losses cannot be recovered for any subsequent increase in fair value until the sale of the asset.

The Company recorded impairment charges of $6.0 million and $71.1 million in the three and nine months ended September 30, 2021 due to the observed market price of bitcoin decreasing below the carrying value during the period. As of September 30, 2021, the fair value of the investment in bitcoin was $351.7 million based on observable market prices which is $202.8 million in excess of the Company's carrying value of $148.9 million.

In the second quarter of 2021, the Company began lending a portion of its bitcoin investments to third parties. As of September 30, 2021, $6.0 million of the Company's investments in bitcoin had been loaned to third party borrowers. Bitcoin is an indefinite-lived intangible asset and under the terms of the lending arrangement it must be returned to the Company. As such, the bitcoin lent will not be derecognized and will continue to be carried at cost less impairment losses.

The following table presents the detail of other non-current liabilities (in thousands):


	September 30, 2021		December 31, 2020
Statutory liabilities (i)	$	135,568	$	75,370

Other (ii)	91,480		9,921
Total	$	227,048	$	85,291

(i) Statutory liabilities represent loss contingencies that may arise from the Company's interpretation and application of certain guidelines and rules issued by various federal, state, local, and foreign regulatory authorities.