Company: FLDDW
Filing Date: 2025-04-11
Form Type: 424B3
Source: 0001213900-25-031004
Chunk: 34

Company: Fold Holdings, Inc.
Filing Date: 2025-04-11
Form: 424B3
Chunk 34
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 storage wallet that is dedicated to Fold customer assets. Those funds are not commingled with Fold’s proprietary Bitcoin, BitGo’s
other customers, or BitGo itself. BitGo controls the keys to this wallet. 100% of this Bitcoin is held in cold storage.

As of December 31, 2024, 1% of
Fold customer Bitcoin was held directly at Fortress, 22% was held directly at BitGo, and 77% was held at BitGo in a sub-custodial capacity
for Fortress.

We hold cash at Sutton Bank in
accounts designated as for the benefit of our customers. We have also entered into partnerships with third parties where our partners
receive and hold customer funds. Our customers open accounts directly with Fortress and/or BitGo to custody their Bitcoin and receive
other Bitcoin-related services, and directly with Sutton Bank to hold cash and receive other fiat-related services. Our and our financial
partners’ abilities to accurately hold customer cash and Bitcoin, as well as cash and Bitcoin we hold for our own investment and
operating purposes, requires a high level of internal controls. We are limited in our ability to influence or manage the controls and
processes of third party partners or vendors and may be dependent on our partners’ and vendors’ operations, liquidity and
financial condition to manage these risks. As we maintain, grow and expand our product and services offerings we also must scale and strengthen
our internal controls and processes, and monitor our third party partners’ and vendors’ ability to similarly scale and strengthen.
Failure to do so could adversely impact our business, operating results, and financial condition. This is important both to the actual
controls and processes and the public perception of the same.

Any material failure by us or
our partners to maintain the necessary controls, policies, procedures or to manage the Bitcoin or cash we hold for our own investment
and operating purposes could also adversely impact our business, operating results, and financial condition. Further, any material failure
by us or our partners to maintain the necessary controls or to manage customer Bitcoin and funds appropriately and in compliance with
applicable regulatory requirements could result in reputational harm, litigation, regulatory enforcement actions, significant financial
losses, lead customers to discontinue or reduce their use of our and our partners’ products, and result in significant penalties
and fines and additional restrictions, which could adversely impact our business, operating results, and financial condition.

Our and our customers’
Bitcoin could be subject to risk in the event of an ins