BITCOIN HELD FOR OTHER PARTIES

6 Months Ended

Jun. 30, 2023

Other Liabilities Disclosure [Abstract]

BITCOIN HELD FOR OTHER PARTIESThe Company allows its Cash App customers to store their bitcoin in the Company’s digital wallets free of charge. The Company also holds an immaterial amount of bitcoin from select trading partners to facilitate bitcoin transactions for customers on Cash App. Other than bitcoin, the Company does not hold or store any other types of crypto-assets for customers or trading partners. The Company holds the cryptographic key information and maintains the internal recordkeeping of the bitcoin held for other parties. The Company's contractual arrangements state that its customers and trading partners retain legal ownership of the bitcoin; have the right to sell, pledge, or transfer the bitcoin; and also benefit from the rewards and bear the risks associated with the ownership, including as a result of any bitcoin price fluctuations. The customer also bears the risk of loss as a result of fraud or theft, unless the loss was caused by the Company’s gross negligence or the Company’s willful misconduct. The Company does not use any of the bitcoin custodied for customers or trading partners as collateral for any of the Company’s loans or other financing arrangements; nor does it lend or pledge bitcoin held for others to any third parties. The Company occasionally engages third-party custodians to store and safeguard bitcoin on the Company's behalf. As of June 30, 2023, an immaterial amount of the bitcoin was held by third-party custodians on the Company's behalf.

The Company records a bitcoin safeguarding obligation liability and a corresponding bitcoin safeguarding asset based on the fair value of the bitcoin held for other parties at each reporting date in accordance with Staff Accounting Bulletin No. 121 ( "SAB 121"). The Company was not aware of any actual or possible safeguarding loss events as of June 30, 2023 or December 31, 2022, and accordingly, the bitcoin safeguarding obligation liability and the associated bitcoin safeguarding asset were recorded at the same value.

The following table summarizes the Company’s bitcoin held for other parties (in thousands, except number of bitcoin):


	June 30, 2023		December 31, 2022
Approximate number of bitcoin held for customers	25,058		25,850
Approximate number of bitcoin held for trading partners	—		62
Total approximate number of bitcoin held for other parties	25,058		25,912

Safeguarding obligation liability related to bitcoin held for customers	$	763,516	$	427,221
Safeguarding obligation liability related to bitcoin held for trading partners	—		1,022
Safeguarding obligation liability related to bitcoin held for other parties	$	763,516	$	428,243
Safeguarding asset related to bitcoin held for other parties	$	763,516	$	428,243