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PREPAID EXPENSES AND OTHER ASSETS
 12 Months Ended
Dec. 31, 2022
Deferred Costs, Capitalized, Prepaid, and Other Assets Disclosure [Abstract]  
PREPAID EXPENSES AND OTHER ASSETS PREPAID EXPENSES AND OTHER ASSETS
Prepaid expenses and other current assets, and other non-current assets consisted of the following (in thousands):
December 31,
20222021
Prepaid expenses and other current assets
Prepaid expenses$98,204 $123,246 
Deposits— 9,658 
Assets pledged as collateral100,007 — 
Other18,837 2,945 
Total prepaid expenses and other current assets$217,048 $135,849 
Other non-current assets
Strategic investments$326,683 $363,950 
Deferred tax assets1,046,791 573,547 
Deposits10,989 13,347 
Other17,257 1,463 
Total other non-current assets$1,401,720 $952,307 
Assets pledged as collateral
The Company has pledged USDC that serves exclusively as collateral for certain crypto asset borrowings with a fair value of at least 100% of the loan amount outstanding. The Company has pledged Bitcoin that serves exclusively as collateral for fiat loans with a fair value of at least 110% of the loan amount outstanding.
As of December 31, 2022, the balance of the Company’s pledged collateral consisted of the following (in thousands, except units):
December 31, 2022
UnitsFair Value
Asset
USDC47,633,897 $47,634 
Bitcoin650 10,743 
FiatN/A41,630 
Total$100,007 
As of December 31, 2021, the Company did not have any assets pledged as collateral recorded on the consolidated balance sheets.
Strategic investments
The Company makes strategic investments in various companies and technologies through Coinbase Ventures. Strategic investments primarily include equity investments in privately held companies without readily determinable fair values where the Company (1) holds less than 20% ownership in the entity, and (2) does not exercise significant influence, and accordingly, these investments are recorded at cost and adjusted for observable transactions for same or similar investments of the same issuer (referred to as the measurement alternative) and impairment. The changes in the carry value of strategic investments accounted for under the measurement alternative are presented below (in thousands):
Year Ended December 31,
20222021
Carrying amount, beginning of period$352,431 $26,146 
Net additions(1)
62,975 320,316 
Upward adjustments900 8,019 
Previously held interest in Bison Trails (see Note 4)— (2,000)
Impairments and downward adjustments(101,021)(50)
Carrying amount, end of period(2)
$315,285 $352,431 
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(1)Net additions include additions from purchases and reductions due to exits of securities and reclassifications due to changes to capital structure.
(2)Excludes $11.4 million and $11.5 million of strategic investments during the years ended December 31, 2022 and 2021, respectively, that are not accounted for under the measurement alternative.

Upward adjustments, impairments and downward adjustments from remeasurement of investments are included in other expense (income), net in the consolidated statements of operations. As of December 31, 2022, cumulative upward adjustments were $4.9 million and cumulative impairments and downward adjustments were $102.0 million. As of December 31, 2021, cumulative upward adjustments and cumulative impairments and downward adjustments were $4.6 million and $0.5 million, respectively.
During the years ended December 31, 2022 and 2021, the Company invested an aggregate of $13.8 million and $203.1 million, respectively, in investees in which certain related parties of the Company held an interest over 10%.