v3.22.2.2
Fair Value Measurements (Tables)
 9 Months Ended
Sep. 30, 2022
Fair Value Disclosures [Abstract]  
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 September 30, 2022 and December 31, 2021 based on the three-tier fair value hierarchy:

September 30, 2022
Level 1Level 2Level 3Total
Assets
Cash equivalents:
Money market funds$201,560 
(1)
$— $— $201,560 
Other current assets:
Digital assets held for users— 47,951 
(2)
— 47,951 
Other non-current assets:
Derivative instruments— — 46,833 
(5)
46,833 
Equity securities19,150 
(3)
13,533 
(4)
— 32,683 
Total$220,710 $61,484 $46,833 $329,027 
Liabilities
Other current liabilities:
Digital assets held for users$— $47,951 
(2)
$— $47,951 
Warrant liabilities — 19,877 
(6)
— 19,877 
Total$— $67,828 $— $67,828 

December 31, 2021
Level 1Level 2Level 3Total
Assets
Cash equivalents:
Money market funds$550,169 
(1)
$— $— $550,169 
Other non-current assets:
Derivative instruments— — 3,850 
(5)
3,850 
Equity securities27,200 
(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 nine months ended September 30, 2022, the Company did not purchase or issue a significant amount of new derivative instruments. 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.
September 30, 2022December 31, 2021
Significant Unobservable InputRange (Weighted Average)
Underlying stock price
$7.66 - $39.22 ($34.26)
$10.88 
Volatility
65.0% - 75.0% (72.8%)
60.0 %
Risk-free rate
1.3% - 3.8% (1.7%)
0.3 %
(6)The Company measures its Private Warrants and the GNOG Private Warrants to fair value using a binomial lattice model or a Black-Scholes model, where appropriate, with the significant assumptions being observable inputs and, accordingly, classifies these liabilities as Level 2.