Company: FLDDW
Filing Date: 2025-01-22
Form Type: S-4/A
Source: 0001213900-25-005202
Chunk: 332

Company: Fold Holdings, Inc.
Filing Date: 2025-01-22
Form: S-4/A
Chunk 332
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 overall portfolio. Liquidity:Unlike traditional financial markets, the market for bitcoin operates 24/7, offering constant access to liquidity. Enhanced brand perception:Companies investing in bitcoin may be viewed by certain consumers as more forward -thinking, appealing to progressive, tech -savvyconsumers and investors. Balance sheet management:We believe building a solid balance sheet with potential for growth will provide a solid foundation for us to better operate and grow our business over time. These factors suggest strategic benefits for Fold incorporating bitcoin into our financial strategies, aligning with modern financial trends and technological advancements. We believe Fold is on track to be the first publicly traded pure play bitcoin financial services company and the first public company to debut with more than 1,000 bitcoin in treasury. A number of public companies have implemented a bitcoin treasury strategy similar to Fold’s, including MicroStrategy Incorporated, Block, Inc., Tesla, Inc., Nexon Co., Ltd. and Semler Scientific, Inc. We anticipate many more companies will adopt a bitcoin treasury strategy to leverage bitcoin as a strategic asset, driven by the success seen by MicroStrategy, which as of September6, 2024 had grown 717% since adopting a bitcoin treasury strategy compared to the 418% growth of bitcoin over the same period. With nearly $7 trillion in cash reserves held by public companies according to a February16, 2024 report by Yahoo Finance, there is significant potential for additional allocation into bitcoin. Due to the limited supply of bitcoin, the total number of companies that can own more than 1,000 bitcoin would be less than 0.1% of total U.S. companies, assuming 33million total U.S. companies. This is why Fold is committed to being a first mover in demonstrating how bitcoin can drive and preserve company value. Flywheel Effect We expect demand for bitcoin financial services to continue to increase over time, and Fold has positioned itself as a first mover to benefit from this acceleration. As the bitcoin network expands, we believe demand for our services will grow, fueling a cycle where we build more financial products to meet consumer needs, further increasing our cash flows, our bitcoin treasury, and the bitcoin holdings of our customers. This flywheel, powered by aligned incentives and our first -moveradvantage, positions Fold to capitalize on Bitcoin’s rapid growth and increasing value. Our Growth Strategy Fold aims to grow alongside the emerging bitcoin economy, which is expected to reach one billion users by 2030, based on a historical growth rate of 63.2% per