Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2022

Summary of Assets and Liabilities Measured at Fair Value

The following tables set forth the fair value of the Company’s financial assets and liabilities measured at fair value as of June 30, 2022 and December 31, 2021 based on the three-tier fair value hierarchy:


	June 30, 2022
	Level 1			Level 2			Level 3			Total
Assets
Cash equivalents:
Money market funds	$	200,537	(1)	$	—		$	—		$	200,537
Other current assets:
Digital assets held for users	—			17,283		(2)	—			17,283
Other non-current assets:
Derivative instruments	—			—			46,633		(5)	46,633
Equity securities	18,675		(3)	13,533		(4)	—			32,208
Total	$	219,212		$	30,816		$	46,633		$	296,661

Liabilities
Other current liabilities:
Digital assets held for users	$	—		$	17,283	(2)	$	—		$	17,283
Warrant liabilities	—			13,081		(6)	—			13,081
Total	$	—		$	30,364		$	—		$	30,364


	December 31, 2021
	Level 1			Level 2			Level 3			Total
Assets
Cash equivalents:
Money market funds	$	550,169	(1)	$	—		$	—		$	550,169
Other non-current assets:
Derivative instruments	—			—			3,850		(5)	3,850
Equity securities	27,200		(3)	—			—			27,200

Total	$	577,369		$	—		$	3,850		$	581,219

Liabilities
Warrant liabilities	$	—		$	26,911	(6)	$	—		$	26,911
Total	$	—		$	26,911		$	—		$	26,911

(1)Represents the Company’s money market funds, which are classified as Level 1 because the Company measures these assets to fair value using quoted market prices.

(2)Represents the asset and liability balance for the digital assets held by the Company for its users, which are classified as Level 2 because the Company measures these digital assets to fair value using observable inputs for similar transactions.

(3)Represents the Company’s marketable equity securities, which are classified as Level 1 because the Company measures these assets to fair value using quoted market prices.

(4)Represents the Company’s non-marketable equity securities, which are classified as Level 2 because the Company measures these assets to fair value using observable inputs for similar investments of the same issuer. The Company has elected the remeasurement alternative for these assets.

(5)Represents the Company’s derivative instruments held in other public and privately held entities. The Company measures these derivative instruments to fair value using option pricing models and, accordingly, classifies these assets as Level 3. During the six months ended June 30, 2022, there were not a significant amount of new derivative instruments purchased by or issued to the Company. The table below includes a range and an average weighted by relative fair value of the significant unobservable inputs used to measure these Level 3 derivative instruments to fair value. A change in these significant unobservable inputs might result in a significantly higher or lower fair value measurement at the reporting date.


	June 30, 2022	December 31, 2021
Significant Unobservable Input	Range (Weighted Average)
Underlying stock price	$7.47 - $39.22 ($34.35)	$	10.88
Volatility	70.0% - 75.0% (73.5%)	60.0		%
Risk-free rate	1.3% - 1.6% (1.4%)	0.3		%

(6)The Company measures its Private Warrants and the GNOG Private Warrants to fair value using a binomial lattice model with the significant assumptions being observable inputs and, accordingly, classifies these liabilities as Level 2.