INVESTMENTS AND FAIR VALUE MEASUREMENT

12 Months Ended

Dec. 31, 2023

Fair Value Disclosures [Abstract]

INVESTMENTS AND FAIR VALUE MEASUREMENT

NOTE 8: INVESTMENTS AND FAIR VALUE MEASUREMENT

Investments

Available-for-sale

As of December 31, 2022, our available-for-sale investments, which are included in other current assets on the consolidated balance sheets, were $10 million with no significant unrealized gains or losses. These investments had a stated contractual maturity or redemption date within one year. As of December 31, 2023, we had a $500 million time deposit that was an available-for-sale investment classified as cash equivalents on the consolidated balance sheets. This investment has 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

We had no held-to-maturity investments as of December 31, 2022. The following table summarizes our held-to-maturity investments as of December 31, 2023:

	December 31, 2023
(in millions)	Amortized Cost		Allowance for Credit Losses		Unrealized Gains		Unrealized Losses		Fair Value
Debt securities:
Corporate debt securities	$	205	$	—	$	—	$	(1)	$	204
U.S. Treasury securities	202		—		—		—		202
U.S. government agency securities	42		—		—		—		42
Certificates of deposit	34		—		—		—		34
Commercial paper	3		—		—		—		3
Total held-to-maturity investments	$	486	$	—	$	—	$	(1)	$	485

There were no sales of held-to-maturity investments during the year ended December 31, 2023.

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 Year		1 to 2 Years		Total
Amortized cost
Debt securities:
Corporate debt securities	$	153	$	52	$	205
U.S. Treasury securities	184		18		202
U.S. government agency securities	39		3		42
Certificates of deposit	34		—		34
Commercial paper	3		—		3
Total held-to-maturity investments	$	413	$	73	$	486
Fair value
Debt securities:
Corporate debt securities	$	152	$	52	$	204
U.S. Treasury securities	184		18		202
U.S. government agency securities	39		3		42
Certificates of deposit	34		—		34
Commercial paper	3		—		3
Total held-to-maturity investments	$	412	$	73	$	485

Fair Value of Financial Instruments

Financial assets and liabilities measured at fair value on a recurring basis as of the date indicated below were presented on our consolidated balance sheets as follows:

	December 31, 2022
(in millions)	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents:
Money market funds	$	735	$	—	$	—	$	735
Other current assets:
Equity securities - securities owned	8		—		—		8
Commercial paper	—		5		—		5
Government bonds	3		—		—		3
Corporate bonds	—		2		—		2
Asset related to user cryptocurrencies safeguarding obligation	—		8,431		—		8,431
User-held fractional shares	997		—		—		997
Total financial assets	$	1,743	$	8,438	$	—	$	10,181
Liabilities
User cryptocurrencies safeguarding obligation	$	—	$	8,431	$	—	$	8,431
Fractional shares repurchase obligations	997		—		—		997
Total financial liabilities	$	997	$	8,431	$	—	$	9,428

	December 31, 2023
(in millions)	Level 1		Level 2		Level 3		Total
Assets
Cash equivalents:
Time deposit	$	—	$	500	$	—	$	500
Money market funds	146		—		—		146
Deposits with clearing organizations:
U.S. Treasury securities	50		—		—		50
Other current assets:
Stablecoin	20		—		—		20
Equity securities - securities owned	10		—		—		10
Other non-current assets:
Money market funds - escrow account	2		—		—		2
Asset related to user cryptocurrencies safeguarding obligation	—		14,708		—		14,708
User-held fractional shares	1,592		—		—		1,592
Total financial assets	$	1,820	$	15,208	$	—	$	17,028
Liabilities
User cryptocurrencies safeguarding obligation	$	—	$	14,708	$	—	14,708
Fractional shares repurchase obligations	1,592		—		—		1,592
Total financial liabilities	$	1,592	$	14,708	$	—	$	16,300

The fair value for certain financial instruments that are not required to be measured or reported at fair value was presented on our consolidated balance sheets as follows:

	December 31, 2023
(in millions)	Level 1		Level 2		Level 3		Total
Assets
Held-to-maturity investments:
Corporate debt securities	$	—	$	204	$	—	$	204
U.S. Treasury securities	202		—		—		202
U.S. government agency securities	—		42		—		42
Certificates of deposit	—		34		—		34
Commercial paper	—		3		—		3
Total held-to-maturity investments	$	202	$	283	$	—	$	485

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 year ended December 31, 2023, we did not have any transfers in or out of Level 3 assets or liabilities.

Safeguarded user cryptocurrencies

Safeguarded user cryptocurrencies were as follows:

	Year Ended December 31,
(in millions)	2022		2023
Bitcoin (BTC)	$	2,327	$	6,149
Ethereum (ETH)	2,341		3,761
Dogecoin (DOGE)	2,802		3,319
Other	961		1,479
Total user cryptocurrencies safeguarding obligation and corresponding asset	$	8,431	$	14,708

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, 2022 and 2023.