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Strategic Investments
 9 Months Ended
Sep. 30, 2025
Investments, Debt and Equity Securities [Abstract]  
Strategic Investments Strategic Investments
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 investments, we have elected to account for these investments and the associated embedded derivatives utilizing the fair value option. Unrealized and realized changes in fair value for the entire hybrid instruments are recorded within other income, net in the consolidated statements of operations and comprehensive income (loss).
During the nine months ended September 30, 2025, we closed a series of transactions to acquire additional equity interests in an existing strategic investee for an aggregate amount of $215.1 million.

During the first quarter of 2025, we also recognized a gain of $167.4 million related to an observable price change of a separate existing strategic investee. Furthermore, we entered into a series of transactions to sell certain interests and recognized proceeds from the sales of $340.7 million for the nine months ended September 30, 2025. Previously unrealized gains of $320.8 million were realized from the collective sales, net of $1.3 million of transaction costs.

During the third quarter of 2025, a strategic investee completed a change-of-control transaction resulting in liquidation of the entity and distribution of consideration to its shareholders. In connection with the transaction, we received consideration of $36.9 million. We recognized a gain of $14.6 million from the sale, net of $0.1 million of transaction costs. Previously unrealized gains of $2.6 million were realized as a result of this sale.
The following table presents the carrying value of our strategic investments (in thousands) as of:
September 30, 2025
Strategic investmentsWarrants Call optionsTotal
Equity securities:
Non-marketable equity securities$368,184 $6,617 $11,600 $386,401 
Debt securities:
Non-marketable debt securities546 — — 546 
Total strategic investments$368,730 $6,617 $11,600 $386,947 
December 31, 2024
Strategic investmentsWarrantsCall optionsTotal
Equity securities:
Non-marketable equity securities$319,598 $4,368 $— $323,966 
Debt securities:
Non-marketable debt securities8,584 — — 8,584 
Total strategic investments$328,182 $4,368 $— $332,550 
The life to date cumulative upward and downward adjustments to the carrying value of our strategic equity investments accounted for under the ASC 321 measurement alternative and still held as of September 30, 2025 were $10.4 million and $16.3 million, respectively.
The following tables summarize the gains and losses associated with our strategic investments during the three and nine months ended September 30, 2025 and 2024 (in thousands):
Three Months Ended September 30, 2025Three Months Ended September 30, 2024
Strategic InvestmentsWarrantsCall optionsTotalStrategic InvestmentsWarrantsCall optionsTotal
Realized gains recognized on strategic investments during the period, net$17,157 $— $— $17,157 $— $— $— $— 
Reversal of prior period cumulative unrealized gains, net, for securities sold during the period(2,585)— — (2,585)— — — — 
Unrealized gains on strategic investments still held at the reporting date (1)
46 — — 46 449 — — 449 
Unrealized losses, including impairments, on strategic investments still held at the reporting date — — — — — — — — 
Gains on strategic investments, net$14,618 $— $— $14,618 $449 $— $— $449 
(1)Includes unrealized gains of $0.5 million for the entire hybrid debt security strategic investment instrument of a strategic investee for the three months ended September 30, 2024.
Nine Months Ended September 30, 2025Nine Months Ended September 30, 2024
Strategic InvestmentsWarrantsCall optionsTotalStrategic InvestmentsWarrantsCall optionsTotal
Realized gains (losses) recognized on strategic investments during the period, net (1)
$337,974 $— $— $337,974 $45,162 $— $(2,849)$42,313 
Reversal of prior period cumulative unrealized gains, net, for securities sold during the period (1)
(161,820)— — (161,820)— — — — 
Unrealized gains on strategic investments still held at the reporting date (2)
6,536 — — 6,536 75,370 855 — 76,225 
Unrealized losses, including impairments, on strategic investments still held at the reporting date (2,048)— — (2,048)— — — — 
Gains (losses) on strategic investments, net$180,642 $— $— $180,642 $120,532 $855 $(2,849)$118,538 
(1)Includes realized gains and reversal of prior unrealized gains of $2.6 million and $1.1 million, respectively, for a hybrid debt security strategic investment instrument related to a strategic investee liquidation event for the nine months ended September 30, 2025.
(2)Includes unrealized gains of $0.6 million for the entire hybrid debt security strategic investment instrument of a strategic investee for the nine months ended September 30, 2024.