Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 260

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1A
Chunk 260
---
 particularly. Additional
bankruptcies, closures, liquidations, regulatory enforcement actions or other events involving participants in the digital assets industry
in the future could result in market prices being subject to erratic and abrupt market movement, which could harm our business. Further,
because there is no centralized authority which determines the price of Bitcoin, pricing often differs between exchanges. When some exchanges
are viewed as higher risk, that price differential can widen as traders attempt to exploit these differences. Volatility in the price
of Bitcoin, as well as the lack of a standard price, could lead consumers to see Bitcoin as an unsafe asset, which would result in losses
of customers and resulting harm to our business. In addition, if we were to attempt to monetize the Bitcoin we hold on our balance sheet,
such price volatility could lead to trading losses, impacting our financial position.

For example, based on aggregate US exchange markets
data collected by CoinMarketCap, on December 18, 2023, the price of Bitcoin at 10:00 P.M. UTC was $42,623.54. On December 18, 2024, the
price of Bitcoin at 10:00 P.M. UTC was $100,041.54. Between those dates, Bitcoin experienced significant volatility. For example, on August
1, 2024, the price of Bitcoin was $65,353.50, and on August 5, 2024 the price of Bitcoin was $53,991.35. On August 24, 2024, the price
of Bitcoin had risen again to $64,176.37. In 2022, price swings were even more drastic, with prices as high as $47,459 at the end of March
2022 and as low as $16,530 at the end of the year. Such volatility will impact the overall value of our business and could cause volatility
in the price of our stock.

36

The trading volume of Bitcoin typically increases
during periods of extreme volatility. For example, in the days following the federal elections in November 2024, the price of Bitcoin
rose sharply from $69,289.27 on November 2 to $87,250.43 on November 14, and volumes increased from 18,184,612,091 to 87,616,705,248 during
that time period according to aggregate data from US exchange markets collected by CoinMarketCap. Such volume increases can lead to extreme
pressures on our and our