Company: FLDDW
Filing Date: 2025-08-11
Form Type: 424B3
Source: 0001213900-25-074298
Chunk: 278

Company: Fold Holdings, Inc.
Filing Date: 2025-08-11
Form: 424B3
Chunk 278
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            |     |         |           |     |         |   |     |         |            |
| Customer rewards liability |     | $                       |  5,333,384 |     | $       |         — |     | $       | — |     | $       |  5,333,384 |
| SAFEs                      |     |                         | 10,601,545 |     |         |         — |     |         | — |     |         | 10,601,545 |
| Total liabilities          |     | $                       | 15,934,929 |     | $       |         — |     | $       | — |     | $       | 15,934,929 |

The carrying amounts of certain financial instruments, including cash and cash equivalents, accounts receivables, accounts payable and accrued liabilities, and deferred revenue approximate their fair values due to their short -termnature. The fair value of our digital assets was determined using the Level 1 input of bitcoin prices in the market we determined to be the principal market as of December 31, 2024 and 2023.

F-28

Fold, Inc.
Notes to Financial Statements 14. FAIR VALUE MEASUREMENTS (cont.) Customer rewards liability The customer reward liability is classified as a Level 3 financial instrument within the fair value hierarchy primarily due to the reward forfeiture rate applied to the value of the bitcoin obligation, which is an unobservable input to the fair value measurement. The Company has determined the bitcoin price based on its value in the market we determined to be the principal market for the related digital asset as of December 31, 2024 and 2023, which is considered a Level 1 input. The forfeiture rate is then applied to reflect an estimated breakage rate of rewards that have been forfeited based on the contractual terms and conditions of our Rewards Program and historical trends of forfeiture rates on a three -yeartrailing basis. The estimated forfeiture rate applied to our customer rewards liability for each of the years ended December 31, 2024 and 2023 was 10%. Simple Agreements for Future Equity The estimated fair value of the SAFEs (refer to Note 8) is determined based on the aggregated, probability -weightedaverage of the outcomes of certain scenarios, including: (i) equity financing, with conversion of the SAFEs into a number of shares of convertible preferred stock at the lower of the post -moneyvaluation cap price or discount price (ii) liquidity