Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 1

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1
Chunk 1
---
 rotating
spending categories, mortgage, rent, and bills, as well as up to 15% or more on card-linked merchant offers. In addition to Fold Card
rewards, customers can earn up to 20% back in rewards through our expansive catalog of merchant offers at top merchants. Fold’s
expansive rewards network includes top offer aggregators and direct merchant relationships to maximize inventory and exclusive rewards.
Customers can also earn rewards for other types of behaviors such as referral bonuses, sign-up bonuses, spinning a daily rewards wheel,
and other behavioral actions that the Company chooses to incentivize. Both the amount of rewards earned and the qualifying actions that
are eligible to earn rewards change from time to time at Fold’s discretion.

1

Rewards are valued either as a percentage of a
transaction (i.e. 1.5% back) or as a flat amount of satoshis (“sats”), which is a subunit of bitcoin (i.e. 25 sats). There
are 100,000,000 sats in 1 bitcoin. For rewards valued as a percentage of a transaction, Fold calculates the value of those rewards as
the US dollar value of those rewards multiplied by the USD-BTC exchange rate at the time of the transaction based on the USD exchange
rate of one bitcoin on the Coinbase exchange. For example, assume a user earns 1.5% back on a $100 purchase when the USD-BTC exchange
rate is $50,000 per bitcoin. In that scenario, a user would earn 3,000 sats (($1.50 / $50,000) * 100,000,000 sats). Rewards are then credited
to a user’s account at the sats value (in this case 3,000 sats), regardless of future changes in the USD-BTC exchange rate.

All rewards are earned immediately upon the performance
of a qualifying action by the user, but not all rewards are immediately available for redemption. The redemption criteria for rewards
varies by the type of qualifying action or transaction as outlined in the terms and conditions of the Fold Rewards Program. For example,
rewards earned on the daily spin wheel are available for redemption immediately, while rewards earned via certain qualifying spend transactions
on the Fold Card are subject to a 30-day settlement period before becoming available for redemption, a policy that is in place to prevent
fraudulent activities.

Per the terms and conditions of the Fold Rewards
Program, rewards are subject to adjustment for