Strategic Investments

12 Months Ended

Dec. 31, 2023

Strategic Investments

Strategic Investments

Note 8 – Strategic Investments

Strategic investments include investments in a number of non-public technology driven companies. We account for strategic investments under ASC 321 measurement alternative for equity securities without readily determinable fair values, as there are no quoted market prices for the investments. The 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.

In conjunction with certain of our strategic investments, we 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.

The following tables provide a roll-forward of the balance of strategic investments (in thousands):

	Year Ended December 31, 2023								Year Ended December 31, 2022
	Strategic investments		Warrants			Call options	Total		Strategic investments		Warrants			Call Options		Total
Balance, beginning of period	$	277,676	$	1,654	$	17,233	$	296,563	$	80,775	$	2,745	$	—	$	83,520
Investments		15,016		1,176		—		16,192		56,914		459		17,233		74,606
Fair value adjustments
Unrealized gains		—		—		—		—		44,376		28,539		—		72,915
Unrealized losses and impairments		(81,196)		(1,329)		—		(82,525)		(1,108)		—		—		(1,108)
Exercises		1,500		—		—		1,500		96,719		(30,089)		—		66,630
Balance, end of period	$	212,996	$	1,501	$	17,233	$	231,730	$	277,676	$	1,654	$	17,233	$	296,563

	Inception to date
	Strategic investments		Warrants			Call options	Total
Investments	$	124,498	$	4,222	$	17,233	$	145,953
Fair value adjustments
Realized gains		12,312		—		—		12,312
Unrealized gains		74,817		29,073		—		103,890
Unrealized losses and impairments		(82,304)		(1,705)		—		(84,009)
Exercises		98,219		(30,089)		—		68,130
Sales		(14,546)		—		—		(14,546)
Balance, end of period	$	212,996	$	1,501	$	17,233	$	231,730

In accordance with ASC 321-10-35-3, we determined an impairment indicator existed for one of our strategic investments as of June 30, 2023. Thus, we performed a quantitative analysis and concluded the fair value was less than the carrying value. An unrealized impairment loss of $73.8 million related to our strategic investment and related warrants was recorded in interest and other income, net on our consolidated statement of operations for the year ended December 31, 2023.