Company: FLDDW
Filing Date: 2025-04-11
Form Type: 424B3
Source: 0001213900-25-031004
Chunk: 129

Company: Fold Holdings, Inc.
Filing Date: 2025-04-11
Form: 424B3
Chunk 129
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 (collectively “Exchange Providers”) to offer eligible customers the ability
to buy, sell, store, insure, and withdraw bitcoin using the Fold app via an “Exchange Account”. Fold earns revenue on these
transactions via a combination of transaction fees and transaction spreads. Spreads on trades include two components: (1) spreads charged
by our Exchange Providers, which include any spreads passed on by their liquidity providers, and (2) Fold’s spread. For customers
that do not have a Fold+ subscription, Fold also adds a transaction fee to certain buy and sell transactions as outlined in our terms
and conditions which can change from time to time. Transaction fees are stated as a percentage of the purchase or sale amount (i.e. 1.5%).

Other revenue

We occasionally earn 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 are not currently material to our business.

Revenue Rewards

Users can earn bitcoin rewards by engaging in
qualifying revenue-generating activities (spending money on Fold’s products, “Revenue Rewards”). Revenue Rewards are
defined as those that are earned in direct relation to a qualifying spend transaction such as spending on the Fold Debit Card, purchasing
bitcoin, purchasing merchant offers, etc. Marketing Rewards are defined as those that are earned for behaviors unrelated to qualifying
spend transactions such as sign-up bonuses, referral bonuses, spinning the daily spin wheel, etc. For accounting purposes, any reward
that derives from a transaction where Fold receives revenue constitutes a Revenue Reward, whereas all other rewards constitute Marketing
Rewards. Marketing Rewards are recorded as a marketing expense within operating expenses.

Revenue Rewards constitute a “non-revenue
element” of our contracts with customers and are accounted for under ASC 815 – Derivatives and Hedging. Under that guidance,
for all applicable revenue streams, Revenue Rewards are recorded as a direct reduction in the transaction price of the related revenue
earned (ex. we reduce interchange revenue by the amount of rewards earned by customers when completing qualifying spend transactions).

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