Company: FLDDW
Filing Date: 2025-04-11
Form Type: 424B3
Source: 0001213900-25-031004
Chunk: 130

Company: Fold Holdings, Inc.
Filing Date: 2025-04-11
Form: 424B3
Chunk 130
---
 Card are subject to a 30-day settlement period before becoming available for redemption, a policy that is in place to prevent
fraudulent activities.

The Company accrues both Revenue Rewards and Marketing
Rewards, (collectively, the “Rewards”) within ‘Customer rewards liability’ in our accompanying balance sheets at
the time the Reward is earned, with the corresponding impact on our statements of operations dependent on the type of Reward. The liability
is initially recorded at the fair value of the bitcoin earned upon the action by the user and subsequently marked to fair value until
redeemed or reversed, with gains and losses on this liability recorded within ‘Gain (Loss) on customer rewards liability’ in our accompanying
statements of operations. The liability is derecognized when the Reward is redeemed by the user and delivered to the user’s bitcoin wallet.

Per the terms and conditions of the Fold Rewards
Program, rewards are subject to adjustment for chargebacks, returns, refunds, or other circumstances. In addition, rewards are subject
to expiry if users fail to maintain an active account for more than twelve consecutive months. The Company estimates the amount of rewards
that will expire based on historical data, current user trends, and other factors and accrues for those amounts in the period those rewards
were earned.

Sales returns and allowances

All revenue is recognized net of sales returns
and allowances, when applicable, which arise from time to time for various reasons. Returns and allowances have been primarily related
to merchant offers and have historically been immaterial to our business.

<div align='center'>70</div>

Operating Expenses

Operating expenses consist of the costs to satisfy
our performance obligations to our customers; compensation and benefits; marketing expenses; professional fees; amortization of capitalized
software development costs; and other selling, general, and administrative expenses.

Banking and payment costs

Banking and payments costs include direct costs
related to licensing, servicing, and processing transactions within our banking and payments products, including costs related to our
Fold Debit Card and Merchant Offers. For accounting purposes, the Company is the principal in gift card transactions and therefore recognizes
(1) gross revenues for the sales price of the gift card to the customer, and (2) gross costs of sales for the cost of each gift card sold.

Custody and trading costs

Custody and trading costs consist primarily of
licensing, servicing, and custodial fees related to our bitcoin exchange product. Custody and trading costs scale in proportion to our
v