Strategic Investments

6 Months Ended

Jun. 30, 2021

Investments, Debt and Equity Securities [Abstract]

Strategic Investments

6. Strategic Investments

Strategic investments include investments in a number of non-public technology-driven companies. We account for strategic investments under the 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 carrying amount may not be recoverable.

In conjunction with one of our strategic investments, we have the ability to commit additional capital over time through warrants where the exercisability and exercise prices are conditional on the achievement of certain partnership performance metrics. The amount reflected in other assets represents the fair value of the preferred stock warrants as of June 30, 2021.

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

	Six Months Ended June 30, 2021
	Strategic investments		Warrants for strategic investment		Total
Balance, beginning of period	$	9,500	$	2,211	$	11,711
Investments		20,500		-		20,500
Observable price changes		40,321		534		40,855
Sales		(14,546)		-		(14,546)
Balance, end of period	$	55,775	$	2,745	$	58,520
	Inception to date
	Strategic investments		Warrants for strategic investment		Total
Investments	$	27,568	$	2,588	$	30,156
Observable price changes		42,753		157		42,910
Sales		(14,546)		-		(14,546)
Balance, end of period	$	55,775	$	2,745	$	58,520

During the period ended June 30, 2021, certain of our strategic investees issued new equity to us and/or other investors. These events represented observable price changes for our existing investments and related warrants. Of the total observable price changes, we realized a gain of approximately $12.3 million on the sale of a portion of one of our existing investments. The estimated fair value of the retained existing investments was calculated using valuation techniques that included both observable and unobservable inputs, and was lower than the issue per share of the new equity issued by the strategic investee because of different characteristics of the newly issued equity instruments compared to our existing investments. The valuation techniques included both Level 2 and Level 3 inputs as defined by ASC Topic 820.