Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 9

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1
Chunk 9
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 and emerging fintech solutions.
The banking and payments industry is undergoing significant transformation driven by technological advancements, changing consumer behavior,
and regulatory developments. While the industry presents substantial growth opportunities, stakeholders must navigate various risks and
challenges to remain competitive and compliant in this dynamic landscape. Continuous innovation, robust risk management, and adherence
to regulatory standards are essential for sustained success.

Macroeconomic trends impacting our market

The following macroeconomic factors as they relate
to bitcoin specifically impact our business:

— Awareness: The
perception of bitcoin as a legitimate and secure asset class and technology by the general public plays a crucial role. The pace and effectiveness
of continued education and awareness will impact adoption rates.

— Regulation: The
global regulatory landscape for bitcoin, including clarity around legal status, accounting and tax treatment, and other compliance requirements
will significantly impact its growth. Favorable regulations can encourage adoption, while restrictive measures can hinder it.

— Institutional Adoption: Increased
participation by institutional investors, including hedge funds, mutual funds, corporations, and nation states can drive market confidence
and liquidity, supporting continued growth. Recently launched spot bitcoin ETFs sponsored by large financial service firms have seen significant
inflows, introducing bitcoin to a large pool of new investors and further legitimizing bitcoin as an asset appropriate for institutions.

— Political Environment: Bitcoin
has entered the political conversation in the United States and abroad. As a global leader in innovation and new technologies, we
anticipate the United States political environment to become increasingly favorable for our industry.

— Monetary Policy: Central
bank monetary policies, especially in terms of interest rates and quantitative easing, can influence bitcoin adoption. Low interest rates
and expansive monetary policies that lead to currency debasement often lead to a search for alternative investments like bitcoin.

— Technological Innovation: Advances
in blockchain technology, improvements in scalability (e.g., bitcoin’s Lightning Network), and enhanced security protocols can increase
bitcoin adoption and integration into various financial systems.

We expect each of the above, among other factors,
to contribute to the pace of acceptance of bitcoin and an increase in the addressable market for our products and services. The timing
of these events as well as the potential occurrence of other unforeseeable events that impact our industry is uncertain and may have a
direct impact on our business.

6

Our Customers

Fold caters to one of the most valuable customer
segments in the world. Our current core customer demographic is just entering their financial