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Fair Value Measurements
 9 Months Ended
Sep. 30, 2025
Fair Value Disclosures [Abstract]  
Fair Value Measurements Fair Value Measurements
The following table sets forth by level, within the fair value hierarchy, the Company’s assets and liabilities measured and recorded at fair value on a recurring basis (in thousands):

September 30, 2025
Level 1Level 2Level 3Total
Assets
Cash and cash equivalents:
Money market funds$362,357 $— $— $362,357 
Restricted cash equivalents:
Money market funds1,658 — — 1,658 
Crypto assets held:
Bitcoin604,746 — — 604,746 
Ether46,164 — — 46,164 
Other crypto assets— 24,053 — 24,053 
Receivable, crypto assets pledged:
Bitcoin— 93,296 — 93,296 
Ether— 86,883 — 86,883 
Accounts receivable, net:
Derivative assets(1)
— 385 — 385 
Prepaid expenses and other current assets:
Equity securities1,382 — — 1,382 
Crypto asset options— 684 — 684 
Other non-current assets:
Warrants— — 1,659 1,659 
  Total assets$1,016,307 $205,301 $1,659 $1,223,267 
Liabilities
Related party loans:
Derivative liabilities (1)
$— $487,053 $— $487,053 
Other current liabilities:
Crypto asset collateral payable— 21,282 — 21,282 
Crypto asset options— 685 — 685 
Crypto asset futures— 189 — 189 
  Total liabilities$— $509,209 $— $509,209 
__________________
(1) Excludes the related host contracts which are not measured and recorded at fair value as of September 30, 2025 and are disclosed in the table below.
December 31, 2024
Level 1Level 2Level 3Total
Assets
Restricted cash equivalents:
Money market funds$1,607 $— $— $1,607 
Crypto assets held:
Bitcoin412,115 — — 412,115 
Ether17,562 — — 17,562 
Other crypto assets— 40,424 — 40,424 
Receivable, crypto assets pledged:
Bitcoin— 86,708 — 86,708 
Ether— 81,592 — 81,592 
Accounts receivable, net:
Derivative assets(1)
— 307 — 307 
Prepaid expenses and other current assets:
Crypto asset collateral held— 15,275 — 15,275 
Equity securities219 — — 219 
Corporate bonds— 774 — 774 
Crypto asset options— 6,354 — 6,354 
Total assets$431,503 $231,434 $— $662,937 
Liabilities
Related party loans:
Derivative liabilities (1)
$— $413,700 $— $413,700 
Related party convertible notes:
Convertible notes— — 248,783 248,783 
Other current liabilities:
Crypto asset collateral payable— 15,275 — 15,275 
Crypto asset options— 6,371 — 6,371 
Crypto asset futures— 1,249 — 1,249 
Total liabilities$— $436,595 $248,783 $685,378 
__________________
(1) Excludes the related host contracts which are not measured and recorded at fair value as of December 31, 2024 and are disclosed in the table below.

Refer to Note 2. Summary of Significant Accounting Policies for further details on the valuation methods and significant inputs of the Level 2 and Level 3 assets and liabilities identified in the Company's audited annual consolidated financial statements for the year ended December 31, 2024.

During the nine months ended September 30, 2025 and 2024, the Company did not make any transfers in or out of the levels of the fair value hierarchy.

The following table is a roll-forward of Level 3 investments measured and recorded at fair value on a recurring basis (in thousands):

Level 3 Investments - Warrants
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
Beginning balance$— $— $— $— 
Additions4,345 — 4,345 — 
Unrealized loss attributable to change in fair value(2,686)— (2,686)— 
Ending balance$1,659 $— $1,659 $— 

Level 3 Investments - Convertible Notes
Three Months Ended September 30,Nine Months Ended September 30,
2025202420252024
Beginning balance related party convertible notes$273,454 $222,175 $248,783 $134,928 
Additions3,375 4,022 11,309 81,076 
OCI - Change in fair value attributable to instrument-specific credit risk— 1,067 (874)(2,261)
Unrealized loss attributable to change in fair value8,178 9,775 25,789 23,296 
Conversion of convertible notes to common stock in connection with IPO(285,007)— (285,007)— 
Ending balance related party convertible notes$— $237,039 $— $237,039 

Level 3 Investments - Term Loans
Three Months Ended September 30,Nine Months Ended September 30,
2025
2024(1)
2025
2024(1)
Beginning balance related party term loans$514,868 $— $237,209 $— 
Additions44,703 — 230,439 — 
OCI - Change in fair value attributable to instrument-specific credit risk— — (2,397)— 
Unrealized loss attributable to change in fair value24,989 — 119,309 — 
Conversion of related party term loans to common stock in connection with IPO(584,560)— (584,560)— 
Ending balance related party term loans$— $— $— $— 
__________________
(1) In 2024, the 2024 Term Loan was not yet amended to include a conversion option and was classified as a Level 2 investment.

The Company fair values its convertible notes and convertible term loans utilizing a scenario-based approach that considers various conversion and repayment scenarios, along with a discounted cash flow analysis, which is used to determine the value of an investment today based on projections of future cash flows. The significant input utilized in the discounted cash flow analysis included the discount rate which ranged from 19.5% - 21.7% for both the three and nine months ended September 30, 2025 and 2024.

Convertible notes and related party term loans outstanding prior to the IPO converted to equity and are no longer included in Level 3 investments as of September 30, 2025.

Assets and liabilities measured and recorded at fair value on a non-recurring basis
The Company’s non-financial assets and liabilities, such as intangible assets, software, property and equipment, and lease right-of-use assets, are adjusted to fair value on a non-recurring basis when an impairment charge is recognized. The fair value used in assessing an impairment for these assets are largely based on Level 2 or Level 3 inputs.

The Company’s strategic investments are also measured at fair value on a non-recurring basis. Such fair value measurements are based predominantly on Level 3 inputs such as the recent transaction price involving the same or similar investment, and are adjusted as necessary to reflect relevant market conditions and investment-specific factors. Refer to Note 8. Prepaid Expenses and Other Assets for additional information.

Financial assets and liabilities not measured and recorded at fair value

The following tables summarize the estimated fair values of our financial assets and financial liabilities that are measured at amortized cost, and not required to be carried at fair value on a recurring basis, as of September 30, 2025 and December 31, 2024 (in thousands):

September 30, 2025
Level 1Level 2Level 3
Total(1)
Financial Assets:
Financial assets for which carrying values equal or approximate fair value
Cash and cash equivalents$487,462 $— $— $487,462 
Restricted cash and cash equivalents86,073 — — 86,073 
Customer custodial funds532,804 — — 532,804 
Accounts receivable, net(2)
9,793 — 74,037 83,830 
Total assets$1,116,132 $— $74,037 $1,190,169 
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value
Custodial funds due to customer$532,676 $— $— $532,676 
Third party loans— 192,507 — 192,507 
Related party loans(2)
— 290,226 — 290,226 
Funding debt— 49,204 — 49,204 
Total liabilities$532,676 $531,937 $— $1,064,613 
December 31, 2024
Level 1Level 2Level 3
Total(1)
Financial Assets:
Financial assets for which carrying values equal or approximate fair value
Cash and cash equivalents$42,847 $— $— $42,847 
Restricted cash and cash equivalents26,776 — — 26,776 
Customer custodial funds575,628 — — 575,628 
Accounts receivable, net(2)
5,802 — 59,259 65,061 
Total Assets$651,053 $— $59,259 $710,312 
Financial Liabilities:
Financial liabilities for which carrying values equal or approximate fair value
Custodial funds due to customer$574,080 $— $— $574,080 
Third party loans— 117,612 — 117,612 
Related party loans(2)
— 385,671 — 385,671 
Total liabilities$574,080 $503,283 $— $1,077,363 
__________________
(1) The total carrying value is equal to the total estimated fair value for all financial assets and liabilities.
(2) Excludes the embedded derivatives which are measured and recorded at fair value as of September 30, 2025 and December 31, 2024 and are disclosed in the table above.

The carrying values of financial assets and liabilities equal or approximate fair value because they are short-term in duration, have no defined maturity or have a floating interest rate.

The Company determined credit card receivables to be Level 3 assets. While credit card receivables are short term in duration similar to above, the Company applied the current expected loss model to determine the value of receivables and therefore Level 3 classification is appropriate.