Company: FLDDW
Filing Date: 2025-04-11
Form Type: 424B3
Source: 0001213900-25-031004
Chunk: 241

Company: Fold Holdings, Inc.
Filing Date: 2025-04-11
Form: 424B3
Chunk 241
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 Wallet”. Fold earns revenue on exchange transactions
via a combination of transaction fees and transaction spreads.

The Company’s performance obligation for
Custody & Trading revenues is the maintenance of the Bitcoin Wallet feature of the Fold mobile app. The processing of bitcoin transactions
within the Bitcoin Wallet is a series of distinct services provided over time that are substantially the same and have the same pattern
of transfer to the customer. The Company has determined that it is the agent for its Custody and Trading revenues as Fold does not control
the services of the Exchange Providers – all Bitcoin Wallet transactions are performed via the Exchange Provider for the customer.

The Company’s promise to its customers is
to act as the agent to perform an unknown or unspecified quantity of tasks and the consideration received is contingent upon the customers’
use; as such, the total transaction price is variable. In addition, the Company applies the right to invoice practical expedient to its
Custody and Trading revenues as each performance obligation is recognized over time and the amounts invoiced are reflective of the value
transferred to the customer.

The Company does not have full discretion in determining
transaction spreads. The Company therefore recognizes transaction spread revenues net of any costs charged by the Exchange Provider to
execute those transactions. The Company does have the discretion to determine transaction fees on Bitcoin Wallet transactions and considers
those transaction fees to be analogous for revenue recognition purposes to the fees charged for the debit card program.

Revenues related to this revenue stream were not
material for the years ended December 31, 2024 or 2023.

Other revenues

Occasionally, Fold earns revenues from alternate
sources, including Fold merchandise sales, sponsorship revenues, affiliate revenues, and other one-off revenue models. These revenues
are typically non-recurring and immaterial to Fold’s business.

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 been historically immaterial.

Deferred revenue

Deferred revenues relate to (1) amounts received
from customers who prepay for annual Fold+ subscriptions, and (2) the unearned portion of a bonus paid to us by Visa under our Visa Agreement
(“Visa Bonus”). The Visa Bonus is recognized ratably in accordance with transaction volume in accordance with the terms of
our Visa Agreement. We have determined that these arrangements do not contain a significant financing component, and therefore the transaction
price is not adjusted for