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Investments
 6 Months Ended
Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract]  
Investments Investments
Marketable Securities
The Company’s investments of marketable securities as of December 31, 2022, consisted of the following (in thousands):
 Amortized CostUnrealized GainsUnrealized LossesFair Value
U.S. treasury securities$26,250 $— $(181)$26,069 
Certificates of deposit and time deposits10,000 — — 10,000 
Total marketable securities$36,250 $— $(181)$36,069 
The Company’s investments of marketable securities as of June 30, 2022, consisted of the following (in thousands):
 Amortized CostUnrealized GainsUnrealized LossesFair Value
U.S. treasury securities$70,947 $— $(653)$70,294 
Certificates of deposit and time deposits3,000 — — 3,000 
Total marketable securities$73,947 $— $(653)$73,294 
The table below summarizes the Company’s marketable securities by remaining contractual maturity based on their effective maturity dates (in thousands):
December 31, 2022June 30, 2022
Due in one year or less$36,069 $73,294 
The Company regularly reviews the changes to the rating of its marketable securities by rating agencies and monitors the surrounding economic conditions to assess the risk of expected credit losses. As of December 31, 2022 and June 30, 2022, the unrealized losses and the related risk of expected credit losses were not material.
Strategic Investments
Carrying value of privately held debt securities
The Company’s investments of privately held debt securities as of December 31, 2022, consisted of the following (in thousands):
Amortized CostUnrealized GainsUnrealized LossesFair Value
Privately held debt securities$5,462 $— $(3,503)$1,959 
The Company’s investments of privately held debt securities as of June 30, 2022, consisted of the following (in thousands):
Amortized CostUnrealized GainsUnrealized LossesFair Value
Privately held debt securities$5,486 $— $(4,218)$1,268 
Carrying value of publicly traded and privately held equity securities
The carrying value is measured as the total initial cost plus the cumulative net gain (loss). Publicly traded equity securities are recorded at fair value and privately held equity securities are measured using the measurement alternative. The carrying values for publicly traded and privately held equity securities as of December 31, 2022 are summarized below (in thousands):
Publicly traded equity securitiesPrivately held
equity securities		 Total
Initial total cost$10,270 $128,800 $139,070 
Cumulative net gain (loss)9,055 (687)8,368 
Carrying Value$19,325 $128,113 $147,438 
Privately held equity securities cumulative net gain (loss) is comprised of upward adjustments of $5.5 million and downward adjustments and impairment of $6.2 million as of December 31, 2022.
The carrying values for publicly traded and privately held equity securities as of June 30, 2022 are summarized below (in thousands):
Publicly traded equity securitiesPrivately held
equity securities		 Total
Initial total cost$10,270 $120,300 $130,570 
Cumulative net gain20,531 6,695 27,226 
Carrying Value$30,801 $126,995 $157,796 
Privately held equity securities cumulative net gain is comprised of upward adjustments of $6.7 million as of June 30, 2022.
Gains and Losses on Strategic Investments
The components of gains and losses on strategic investments were as follows (in thousands):
Three Months Ended December 31,Six Months Ended December 31,
2022202120222021
Unrealized losses recognized on publicly traded equity securities$(1,669)$(22,135)$(11,477)$(57,945)
Unrealized gains recognized on privately held equity securities260 — 260 4,388 
Unrealized losses recognized on privately held equity securities including impairment(5,927)— (7,642)— 
Unrealized gains (losses), net$(7,336)$(22,135)$(18,859)$(53,557)
Realized losses on debt securities(212)— (212)— 
Losses on strategic investments, net$(7,548)$(22,135)$(19,071)$(53,557)
Unrealized gains and losses recognized during the reporting period on privately held equity securities still held at the reporting date$(5,667)$— $(7,382)$4,388 
Unrealized gains recognized on privately held equity securities includes upward adjustments from equity securities accounted for under the measurement alternative while unrealized losses recognized on privately held equity securities includes downward adjustments and impairment.
Equity Method Investment
On July 20, 2022, the Company completed a non-cash sale of its controlling interest of Vertical First Trust (“VFT”) to a third-party buyer. Please refer to Note 10, “Assets held for sale,” for additional details. The Company retained a minority equity interest of 13% in the form of ordinary units and has significant influence in VFT. The Company’s interest in VFT is accounted for using the equity method in the condensed consolidated financial statements.
The Company used a discounted cash flow model to calculate the fair value of its retained equity interest. The fair value of the retained interest was $88.9 million, and is classified as a Level 3 investment in the fair value hierarchy. The inputs to the valuation included observable inputs, including capitalization rate, discount rate, and other management inputs, including the underlying building practical completion date. The maximum exposure to loss related to the Company’s investment in VFT equals the Company’s capital investment.
The following table sets forth the carrying amounts of the equity method investment and the movements during the six months ended December 31, 2022 (in thousands):
Equity Method Investment
Balance as of July 20, 2022$88,853 
Effect of change in exchange rates(1,069)
Balance as of December 31, 2022
$87,784 
The carrying amount of the Company’s investment in VFT was reported within strategic investments in the condensed consolidated balance sheets. The Company’s share in the profits and losses of VFT was not material during the three and six months ended December 31, 2022.