Company: FLDDW
Filing Date: 2025-01-24
Form Type: 424B3
Source: 0001213900-25-006075
Chunk: 450

Company: Fold Holdings, Inc.
Filing Date: 2025-01-24
Form: 424B3
Chunk 450
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 asset with the intention to hold as a long -terminvestment. The Company accounts for digital assets as indefinite -livedintangible assets in accordance with ASC 350 -60, Intangibles — Goodwill and Other — Crypto Assets. Under this guidance, digital assets are initially measured at cost and subsequently remeasured at fair value, with gains or losses on remeasurement included in gain (loss) within the accompanying statements of operations. Fair value is measured using the quoted price of bitcoin per the principal market for the related digital assets at the time fair value is being measured. F-9

Fold, Inc.
Notes to Financial Statements 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (cont.) The Company has determined that the gains or losses on digital assets held for the purposes of satisfying its customer rewards are related to its core operations, and therefore classifies gains and losses on the remeasurement of bitcoin held for that purpose as operating income or expense in its statements of operations. The Company assigns costs to digital assets on a first -in, first -outbasis. Digital assets are classified as current in the Company’s accompanying balance sheets to the extent they are being held to fulfill customer reward redemptions as that is the amount that we reasonably expect to liquidate within a one -yearperiod. The excess of our digital assets held over the customer reward liability is classified as a long -termasset held for investment. Safeguarding customer digital assets and liabilities On March 31, 2022, the Securities and Exchange Commission issued Staff Accounting Bulletin Number 121 (“SAB 121”), which provides the SEC staff’s view that it would be appropriate for an entity that has an obligation to safeguard digital assets (such as bitcoin) held for platform users to record a liability and corresponding asset on its balance sheet at the fair value of the digital assets. We adopted the guidance in SAB 121 for the period beginning January 1, 2022, which was the first period where this guidance was applicable to our business. We provide custody services on behalf of our customers through unrelated third -partyservice providers, who are qualified custodians. We do not own digital assets held in a custodial capacity on behalf of our customers. We maintain internal record keeping of those assets and are obligated to safeguard the assets. We do not hold the cryptographic key information on behalf of our customers. The qualified custodians used by Fold hold our customer cryptographic key information. For further detail on our safeguarding customer digital assets and liabilities