Item 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Market risk is the risk to our Condensed Consolidated Financial Statements associated with the effect of changes in market factors, including risks associated with interest rates, foreign currency, derivatives, equity investments, and crypto assets. These assets, liabilities, and equities are held for purposes other than trading. There have been no material changes to our market risk exposures from the information presented in Part II, Item 7A. “Quantitative and Qualitative Disclosures About Market Risk,” in our Annual Report on Form 10-K for the year ended December 31, 2024 except for our market risk exposure on our crypto assets held for investment and on our marketable equity securities held within strategic investments.

Market Risk of Crypto Assets

Though the nature of this exposure and the overall implied volatility of the crypto assets underlying this exposure have not changed since December 31, 2024, the number of units we hold and the price of the assets have changed, resulting in a material change in the result of our sensitivity analysis.

Crypto assets held for investment are primarily held long term, and historically, we have not attempted to reduce our market risk exposure associated with these crypto assets. Crypto asset prices have been volatile, as demonstrated by the one year historical volatility of Bitcoin and Ethereum of approximately 50% implied from the annualized standard deviation of daily price returns observed in the past 24 months. A hypothetical 50% increase or decrease in crypto assets prices as of June 30, 2025 and December 31, 2024 would result in a $919.4 million and $776.5 million impact, respectively, to the value of our Crypto assets held for investment and would have been recorded as gains or losses in our Condensed Consolidated Statements of Operations. The increase in the hypothetical gains or losses since December 31, 2024 primarily reflects changes in the prices of Bitcoin and Ethereum and an increase in the units of each that we hold, as we increased our investment in crypto assets during the six months ended June 30, 2025, deploying available cash.

Equity Investment Risk

Marketable Equity Securities Risk

We hold marketable equity securities measured and recorded at fair value on a recurring basis, exposing us to risk that the fair value of these securities will decline due to changes in market prices. These marketable equity securities are considered strategic investments primarily held long term, and we have not attempted to reduce our market risk exposure associated with these investments.

As of June 30, 2025, our strategic investments in marketable equity securities were $1.6 billion. No marketable equity securities were held as of December 31, 2024. Adjustments to the fair value of these investments are recorded in Other (income) expense, net in our Condensed Consolidated Statements of Operations. During the three and six months ended June 30, 2025, we recognized gains of $1.5 billion on

strategic investments in marketable equity securities, driven primarily by the fair value remeasurement of our investment in Circle Internet Group, Inc. following its initial public offering in June 2025.

Changes in market prices of our strategic investments could materially impact our future results of operations and cash flows, the impact of which is difficult to predict as it depends on market factors that we cannot forecast with reliable accuracy, including due to lack of extended price history for our largest holding as the entity recently entered the public market, and its high price volatility since public debut. In addition, this holding, which comprises nearly all of our marketable equity securities balance at June 30, 2025, is subject to standard post-initial public offering restrictions as to disposition, limiting our flexibility to change strategy with respect to this holding based on changes in market conditions or other circumstances. The restriction ends on the earlier of (i) the date that is the second trading day after the entity publicly announces its earnings for the quarter ending September 30, 2025 and (ii) December 1, 2025. If an adverse 10% fair value remeasurement was applied to our strategic investment marketable equity security holdings as of June 30, 2025, it would result in a $155.4 million loss within Other (income) expense, net in our Condensed Consolidated Statements of Operations.