Company: FLDDW
Filing Date: 2025-08-11
Form Type: 424B3
Source: 0001213900-25-074298
Chunk: 37

Company: Fold Holdings, Inc.
Filing Date: 2025-08-11
Form: 424B3
Chunk 37
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 operational purposes. Bitcoin held on behalf of our customers is stored in one of three places: (1) directly at Fortress; (2) directly at BitGo, or (3) at BitGo in a sub -custodialarrangement with Fortress. (1)Bitcoin held on behalf of our customers directly at Fortress is held primarily in omnibus cold storage wallets for which Fortress controls the private keys. At any given time, approximately 95% of bitcoin held in this capacity is held in omnibus cold storage wallets, with the remainder held in hot wallets used to facilitate customer withdrawals and other real -timeoperational needs. (2)Bitcoin held on behalf of our customers directly at BitGo is held primarily in omnibus cold storage wallets for which BitGo controls the private keys. At any given time, approximately 95% of bitcoin held in this capacity is held in omnibus cold storage wallets, with the remainder held in hot wallets used to facilitate customer withdrawals and other real -timeoperational needs. (3)Fortress also utilizes BitGo as a sub -custodian. Within this sub -custodialarrangement, Fortress sends Fold customer funds to an omnibus BitGo cold storage wallet that is dedicated to Fold customer assets. Those funds are not commingled with Fold’s proprietary bitcoin, BitGo’s other customers, or BitGo itself. BitGo controls the keys to this wallet. 100% of this bitcoin is held in cold storage. As of December 31, 2024, 1% of Fold customer bitcoin was held directly at Fortress, 22% was held directly at BitGo, and 77% was held at BitGo in a sub -custodialcapacity for Fortress. We hold cash at Sutton Bank in accounts designated as for the benefit of our customers. We have also entered into partnerships with third parties where our partners receive and hold customer funds. Our customers open accounts directly with Fortress and/or BitGo to custody their bitcoin and receive other Bitcoin -relatedservices, and directly with Sutton Bank to hold cash and receive other fiat -relatedservices. Our and our financial partners’ abilities to accurately hold customer cash and bitcoin, as well as cash and bitcoin we hold for our own investment and operating purposes, requires a high level of internal controls. We are limited in our ability to influence or manage the controls and processes of third party partners or vendors and may be dependent on our partners’ and vendors’ operations, liquidity and financial condition to manage these risks. As we maintain, grow and expand our product and