We hold strategic investments primarily in privately held companies, which consist of equity securities, and to a lesser extent, debt securities. These strategic investments are primarily recorded at fair value on a non-recurring basis. The estimation of fair value for these privately held strategic investments requires the use of significant unobservable inputs, such as the issuance of new equity by the company, and as a result, we deem these assets as Level 3 financial instruments within the fair value measurement framework.


	As of December 31,
	2023		2022

	(in thousands)
Initial cost	$	106,368	$	125,564
Cumulative upward adjustments	147,317		157,186
Cumulative downward adjustments, including impairments	(58,357)		(30,411)
Carrying value	$	195,328	$	252,339


	Year Ended December 31,
	2023		2022		2021

	(in thousands)
Gains (losses) recognized on strategic investments sold during the period, net	$	—	$	45,935	$	27,820
Unrealized gains on strategic investments still held at the reporting date	1,368		19,946		145,010
Unrealized losses, including impairments, on strategic investments still held at the reporting date	(28,423)		(1,421)		(2,854)
Gains (losses) on strategic investments, net	$	(27,055)	$	64,460	$	169,976

Gains and losses on all strategic investments are included within other income (expense), net on our consolidated statements of operations and included as an adjustment to reconcile net loss to net cash provided by (used in) operating activities in our consolidated statements of cash flows. Strategic investments are included within other assets on our consolidated balance sheets.