Strategic investments include equity and debt investments in a number of non-public technology driven companies. We generally account for strategic equity investments under the ASC 321 measurement alternative for equity securities without readily determinable fair values, as there are no quoted market prices for the equity investments. The equity investments are measured at cost less impairment, adjusted for observable price changes and are assessed for impairment whenever events or changes in circumstances indicate that the fair value may be less than its carrying value.

For the debt security strategic investment, we have elected to account for this investment and the associated embedded derivatives utilizing the fair value option. Unrealized changes in fair value for the entire hybrid instrument are recorded within other income (loss), net in the consolidated statement of operations.

In conjunction with certain of our strategic investments, we may have the ability to commit additional capital over time through warrants and call options; for some investments, the exercisability and exercise prices are conditional on the achievement of certain performance metrics. Depending on their contractual terms, our warrants and call options may be accounted for under either the ASC 321 measurement alternative or as derivative instruments under ASC 815.


	Year Ended December 31, 2024										Year Ended December 31, 2023
	Equity investments		Warrants		Call options		Debt investments		Total		Equity investments		Warrants		Call Options		Total
Balance, beginning of period	$	212,996	$	1,501	$	17,233	$	—	$	231,730	$	277,676	$	1,654	$	17,233	$	296,563
Investments	103,888		2,012		—		7,500		113,400		15,016		1,176		—		16,192
Fair value adjustments:
Realized gains (losses) during the period, net	95,429		—		(4,279)		—		91,150		—		—		—		—
Unrealized gains on strategic investments still held at the reporting date	74,784		855		—		1,084		76,723		—		—		—		—
Unrealized losses on strategic investments still held at the reporting date	(4,093)		—		(893)		—		(4,986)		(81,196)		(1,329)		—		(82,525)
Exercises	(163,406)		—		(12,061)		—		(175,467)		1,500		—		—		1,500
Balance, end of period	$	319,598	$	4,368	$	—	$	8,584	$	332,550	$	212,996	$	1,501	$	17,233	$	231,730

During the year ended December 31, 2024, we exercised call options and acquired the remaining outstanding stock of two strategic investments - Fusus L.L.C. ("Fusus") and Dedrone Holdings, Inc. ("Dedrone"). Our pre-existing interests had fair values at the acquisition dates of $63.3 million and $112.2 million, respectively. The acquisitions of Fusus and Dedrone resulted in net non-taxable gains of $42.3 million and $51.6 million related to the existing strategic equity investments and call options in Fusus and Dedrone, respectively. For additional discussion, refer to Note 21.

Additionally, as a result of an observable price change for a separate strategic investee, we recognized an unrealized gain of $75.6 million for the strategic investment and related warrants in other income (loss), net on our consolidated statement of operations during the year ended December 31, 2024.

For the debt security strategic investment, we recognized an unrealized gain of $1.1 million for the entire hybrid instrument in other income (loss), net on our consolidated statement of operations during the year ended December 31, 2024.


	Inception to date
	Equity investments		Warrants		Call options		Debt investments		Total
Investments	$	325,105	$	6,235	$	17,232	$	7,500	$	356,072
Fair value adjustments:
Realized gains (losses) on strategic investment transactions, net	107,741		—		(4,279)		—		103,462
Cumulative unrealized gains (losses)	63,203		88,298		(893)		1,084		151,692
Exercises	(161,905)		(90,165)		(12,060)		—		(264,130)
Sales	(14,546)		—		—		—		(14,546)
Balance, end of period	$	319,598	$	4,368	$	—	$	8,584	$	332,550