Fair Value Measurements
The following table provides the financial instruments measured at fair value on a recurring basis, within the fair value hierarchy as of December 31, 2025 and 2024:
As of December 31, 2025Level 1Level 2Level 3Total
Cash equivalents:
Money market funds$9,543 $— $— $9,543 
Commercial paper— 69,844 — 69,844 
Corporate bonds— 5,778 — 5,778 
Total cash equivalents$9,543 $75,622 $— $85,165 
Marketable securities:
U.S. agency securities$— $93,754 $— $93,754 
U.S. treasury securities— 515,359 — 515,359 
Commercial paper— 123,517 — 123,517 
Corporate bonds— 446,155 — 446,155 
Bitcoin exchange traded fund73,689 — — 73,689 
Total marketable securities$73,689 $1,178,785 $— $1,252,474 
Digital assets, current
USDC$15,575 $— $— $15,575 
Digital assets, non-current
Bitcoin$15,116 $— $— $15,116 
As of December 31, 2024Level 1Level 2Level 3Total
Cash equivalents:
Money market funds$1,865 $— $— $1,865 
Commercial paper— 86,179 — 86,179 
Total cash equivalents$1,865 $86,179 $— $88,044 
Marketable securities:
U.S. agency securities$— $101,060 $— $101,060 
U.S. treasury securities— 371,924 — 371,924 
Commercial paper— 190,155 — 190,155 
Corporate bonds— 228,953 — 228,953 
Bitcoin exchange traded fund78,791 — — 78,791 
Total marketable securities$78,791 $892,092 $— $970,883 
The Company had no transfers between levels of the fair value hierarchy during any period presented. The tables above exclude strategic investments which had a carrying value of $13.0 million as of December 31, 2025, and were not material as of December 31, 2024.

About Fair Value Disclosures

Fair value disclosures classify all assets and liabilities measured at fair value into a three-level hierarchy: Level 1 (quoted market prices), Level 2 (observable inputs like yield curves), and Level 3 (unobservable inputs requiring management estimates). The proportion of Level 3 assets directly reflects how much of the balance sheet depends on internal models rather than market evidence.

Key signals: a growing Level 3 balance relative to total fair-value assets increases valuation uncertainty and earnings volatility risk. Watch for transfers between levels — assets moving from Level 2 to Level 3 often signal deteriorating market liquidity. Unrealized gains and losses on Level 3 positions flow through earnings or other comprehensive income, so large swings deserve scrutiny. For financial institutions, examine the sensitivity disclosures that show how Level 3 valuations change under alternative assumptions. Compare the fair value of debt against its carrying amount to gauge hidden leverage.