Company: FLDDW
Filing Date: 2025-01-14
Form Type: S-4/A
Source: 0001213900-25-003167
Chunk: 327

Company: Fold Holdings, Inc.
Filing Date: 2025-01-14
Form: S-4/A
Chunk 327
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 is a trustless decentralized digital currency operating on a peer -to-peernetwork. Bitcoin is built on free and open -sourcetechnology which ensures secure and transparent transactions. As of June30, 2024, bitcoin remains the largest cryptocurrency by market capitalization, with significant trading volumes across global exchanges. Over the first 15 years of its existence, the adoption rate of bitcoin as measured by the annual increase in the total number of users has exceeded that of the internet over the first 15 years of the latter’s existence. To date, the primary business models within the bitcoin industry have focused on exchange services, bitcoin mining, and exchange -tradedproducts like ETFs. Bitcoin financial services such as those offered by Fold are part of a fast -growingmarket opportunity to expand bitcoin’s scope into traditional investment and financial use cases relevant to consumers’ everyday lives, such as saving, investing and making payments. The bitcoin industry is dynamic and rapidly evolving, offering substantial opportunities alongside significant risks. Continuous monitoring of technological, regulatory, and market developments is essential for stakeholders to navigate this complex landscape effectively. According to Yahoo Finance, 54% of the bitcoin mining ecosystem is powered by renewable energy sources (Yahoo Finance, Bitcoin mining’s green mile, January18, 2024). As of December18, 2024, based on aggregate US exchange markets data collected by CoinMarketCap, Bitcoin had increased by 2,502.9% in U.S. dollar terms since January 2019, making it among the best performing assets of the decade. The Bitcoin protocol includes programmatic, recurring events called “halvings”. Halving events reduce the block reward miners receive by 50%, which in turn reduces the supply of new bitcoin and leads to increased scarcity of new bitcoin. Halving events occur approximately once every four years and, historically, these events have been correlated with an increase in the bitcoin price. Historically, halvings have also proven to be beneficial for certain bitcoin -basedbusinesses. At Fold, this was evidenced through acceleration expansion of Fold’s user base from 2020 through 2021. Similar user expansion was seen at Coinbase in 2016 -2017and 2020 -2021.

| Year  |     | Fold’s EOP 
       User 
   Growth % |   |     | Bitcoin’s EOP 
         Price 
     Change %1 |    |
| 2019  |     |       49.5 | % |     |          92.