v3.22.4
FAIR VALUE MEASUREMENTS (Tables)
 12 Months Ended
Dec. 31, 2022
Fair Value Disclosures [Abstract]  
Schedule of fair value of assets and liabilities
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):
December 31, 2022
Level 1Level 2Level 3Total
Assets
Cash equivalents(1)
$2,250,065 $— $— $2,250,065 
Customer custodial funds(2)
2,088,132 — — 2,088,132 
Crypto assets held(3)
201,565 — — 201,565 
Derivative assets(4)
— 3,838 — 3,838 
Crypto asset loan receivables(5)
— 85,826 — 85,826 
Customer crypto assets— 75,413,188 — 75,413,188 
Total assets$4,539,762 $75,502,852 $— $80,042,614 
Liabilities
Derivative liabilities(4)
$— $19,583 $— $19,583 
Contingent consideration arrangement— — 1,855 1,855 
Customer crypto liabilities— 75,413,188 — 75,413,188 
Total liabilities$— $75,432,771 $1,855 $75,434,626 
December 31, 2021
Level 1Level 2Level 3Total
Assets
Cash equivalents(1)
$4,813,621 $— $— $4,813,621 
Customer custodial funds(2)
3,566,072 — — 3,566,072 
Crypto assets held(3)
— 421,685 — 421,685 
Derivative assets(4)
— 345,429 — 345,429 
Total assets$8,379,693 $767,114 $— $9,146,807 
Liabilities
Derivative liabilities(4)
$— $93,616 $— $93,616 
Contingent consideration arrangement— — 14,828 14,828 
Total liabilities$— $93,616 $14,828 $108,444 
__________________
(1)Represents money market funds. Excludes $2.0 billion of corporate cash held in deposit at banks and $143.2 million held at venues, which were not measured and recorded at fair value as of December 31, 2022. Excludes $2.1 billion of corporate cash held in deposit at banks and $168.9 million held at venues, which were not measured and recorded at fair value as of December 31, 2021.
(2)Represents money market funds. Excludes customer custodial funds of $3.0 billion and $7.1 billion held in deposit at financial institutions and not measured and recorded at fair value as of December 31, 2022 and 2021, respectively.
(3)Includes crypto assets held that have been designated as hedged items in fair value hedges and excludes crypto assets of $222.8 million and $566.5 million held at cost as of December 31, 2022 and 2021, respectively.
(4)See Note 14. Derivatives for additional details.
(5)Includes the embedded derivative asset of $0.3 million and $0 and embedded derivative liability of $6.0 million and $0 related to the Company's crypto asset loan receivables as of December 31, 2022 and 2021, respectively. See Note 14. Derivatives for additional details.
Schedule of liabilities measured at fair value on a recurring basis
The following table presents a reconciliation of the contingent consideration arrangement measured at fair value on a recurring basis using significant unobservable inputs (in thousands):
Year Ended December 31,
20222021
Balance, beginning of period$14,828$—
Fair value recorded in connection with acquisition—15,752
Change in fair value(8,312)(924)
Settlement(4,661)—
Balance, end of period$1,855$14,828
Schedule of significant unobservable inputs The following significant unobservable inputs were used:
Year Ended December 31,
20222021
Discount rate30.0 %30.0 %
Volatility of forecasted revenues
100.0% - 129.0%
146.1 %