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INVESTMENTS AND FAIR VALUE MEASUREMENT
6 Months Ended
Jun. 30, 2024
Fair Value Disclosures [Abstract]  
INVESTMENTS AND FAIR VALUE MEASUREMENT
NOTE 6: INVESTMENTS AND FAIR VALUE MEASUREMENT
Investments
Available-for-sale
As of December 31, 2023 and June 30, 2024, we had $500 million and $750 million of available-for-sale time deposits classified as cash equivalents on the unaudited condensed consolidated balance sheets. These investments had a maturity of three months or less at the time of purchase, and an aggregate market value equal to amortized cost. Refer to Fair Value of Financial Instruments below for further details.
Held-to-maturity
The following tables summarize our held-to-maturity investments:
December 31, 2023
(in millions)Amortized CostAllowance for Credit LossesUnrealized GainsUnrealized LossesFair Value
Debt securities:
Corporate debt securities$205 $— $— $(1)$204 
U.S. Treasury securities202 — — — 202 
U.S. government agency securities42 — — — 42 
Certificates of deposit34 — — — 34 
Commercial paper— — — 
Total held-to-maturity investments$486 $— $— $(1)$485 
June 30, 2024
(in millions)Amortized CostAllowance for Credit LossesUnrealized GainsUnrealized LossesFair Value
Debt securities:
U.S. Treasury securities$371 $— $— $— $371 
Corporate debt securities124 — — (1)123 
U.S. government agency securities10 — — — 10 
Total held-to-maturity investments$505 $— $— $(1)$504 
There were no sales of held-to-maturity investments during the three and six months ended June 30, 2024.
The table below presents the amortized cost and fair value of held-to-maturity investments by contractual maturity; the [maximum maturity is two years]:
December 31, 2023
(in millions)Within 1 Year1 to 2 YearsTotal
Amortized cost
Debt securities:
Corporate debt securities$153 $52 $205 
U.S. Treasury securities184 18 202 
U.S. government agency securities39 42 
Certificates of deposit34 — 34 
Commercial paper— 
Total held-to-maturity investments$413 $73 $486 
Fair value
Debt securities:
Corporate debt securities$152 $52 $204 
U.S. Treasury securities184 18 202 
U.S. government agency securities39 42 
Certificates of deposit34 — 34 
Commercial paper— 
Total held-to-maturity investments$412 $73 $485 
June 30, 2024
(in millions)Within 1 Year1 to 2 YearsTotal
Amortized cost
Debt securities:
U.S. Treasury securities$371 $— $371 
Corporate debt securities124 — 124 
U.S. government agency securities10 
Total held-to-maturity investments$503 $$505 
Fair value
Debt securities:
U.S. Treasury securities$371 $— $371 
Corporate debt securities123 — 123 
U.S. government agency securities10 
Total held-to-maturity investments$502 $$504 
Fair Value of Financial Instruments
Financial assets and liabilities measured at fair value on a recurring basis were presented on our unaudited condensed consolidated balance sheets as follows:
December 31, 2023
(in millions)Level 1Level 2Level 3Total
Assets
Cash equivalents:
Time deposits$— $500 $— $500 
Money market funds146 — — 146 
Deposits with clearing organizations:
U.S. Treasury securities(1)
50 — — 50 
Other current assets:
Stablecoin20 — — 20 
Equity securities - securities owned10 — — 10 
Other non-current assets:
Money market funds - escrow account— — 
Asset related to user cryptocurrencies safeguarding obligation— 14,708 — 14,708 
User-held fractional shares1,592 — — 1,592 
Total financial assets$1,820 $15,208 $— $17,028 
Liabilities
Accounts payable and accrued expenses:
User cryptocurrencies safeguarding obligation$— $14,708 $— $14,708 
Fractional shares repurchase obligations1,592 — — 1,592 
Total financial liabilities$1,592 $14,708 $— $16,300 
June 30, 2024
(in millions)Level 1Level 2Level 3Total
Assets
Cash equivalents:
Time deposits$— $750 $— $750 
Money market funds113 — — 113 
U.S. Treasury securities— — 
Cash, cash equivalents, and securities segregated under federal and other regulations:
U.S. Treasury securities695 — — 695 
Deposits with clearing organizations:
U.S. Treasury securities(1)
149 — — 149 
Other current assets:
Stablecoin111 — — 111 
Equity securities - securities owned13 — — 13 
Other non-current assets:
Money market funds - escrow account— — 
Asset related to user cryptocurrencies safeguarding obligation— 20,643 — 20,643 
User-held fractional shares2,011 — — 2,011 
Total financial assets$3,102 $21,393 $— $24,495 
Liabilities
User cryptocurrencies safeguarding obligation$— $20,643 $— $20,643 
Fractional shares repurchase obligations2,011 — — 2,011 
Total financial liabilities$2,011 $20,643 $— $22,654 
____________________________
(1) U.S. Treasury securities were pledged to a clearing organization to meet margin requirements for our security lending program.
The fair value for certain financial instruments that are not required to be measured or reported at fair value was presented on our unaudited condensed consolidated balance sheets as follows:
December 31, 2023
(in millions)Level 1Level 2Level 3Total
Assets
Held-to-maturity investments:
Corporate debt securities$— $204 $— $204 
U.S. Treasury securities202 — — 202 
U.S. government agency securities— 42 — 42 
Certificates of deposit— 34 — 34 
Commercial paper— — 
Total held-to-maturity investments$202 $283 $— $485 
June 30, 2024
(in millions)Level 1Level 2Level 3Total
Assets
Held-to-maturity investments:
U.S. Treasury securities$371 $— $— $371 
Corporate debt securities— 123 — 123 
U.S. government agency securities— 10 — 10 
Total held-to-maturity investments$371 $133 $— $504 
The fair values used for held-to-maturity investments are obtained from an independent pricing service and represent fair values determined by pricing models using a market approach that considers observable market data, such as interest rate volatility, relevant yield curves, credit spreads and prices from market makers and live trading systems. Management reviews the valuation methodology and quality controls utilized by the pricing services in management's overall assessment of the reasonableness of the fair values provided.
During the six months ended June 30, 2024, we did not have any transfers in or out of Level 3 assets or liabilities.
Safeguarded user cryptocurrencies
Safeguarded user cryptocurrencies were as follows:
December 31,June 30,
(in millions)20232024
Bitcoin (BTC)$6,149 $9,204 
Ethereum (ETH)3,761 5,105 
Dogecoin (DOGE)3,319 4,298 
Other1,479 2,036 
Total user cryptocurrencies safeguarding obligation and corresponding asset$14,708 $20,643 
The fair value of the user cryptocurrencies safeguarding obligation and the corresponding asset were determined based on observed market pricing representing the last price executed for trades of each cryptocurrency as of December 31, 2023 and June 30, 2024.