Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 251

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1A
Chunk 251
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 that we will receive a favorable return on investment for our acquisitions. We may in the
future be required to write off acquisitions or investments. Moreover, our future acquisitions may not achieve our goals, and any future
acquisitions we complete could be viewed negatively by customers, developers, advertisers, or investors. In addition, if we fail to successfully
close or integrate any acquisitions, or integrate the products or technologies associated with such acquisitions into our company, our
net revenue and operating results could be adversely affected. Our ability to acquire and integrate companies, products, services, licenses,
employees, or technologies in a successful manner is unproven. Any integration process may require significant time and resources, and
we may not be able to manage the process successfully, including successfully securing regulatory approvals which may be required to close
the transaction and to continue to operate the target firm’s business or products in a manner that is useful to us. We may not successfully
evaluate or utilize the acquired products, services, technology, or personnel, or accurately forecast the financial impact of an acquisition
transaction, including accounting charges. We may have to pay cash, incur debt, or issue equity securities to pay for any such acquisition,
any of which could adversely affect our financial results. The sale of equity or issuance of debt to finance any such acquisitions could
result in dilution to our stockholders, which, depending on the size of the acquisition, may be significant. The incurrence of indebtedness
would result in increased fixed obligations and could also include covenants or other restrictions that would impede our ability to manage
our operations.

While we regularly evaluate strategic opportunities,
we do not currently have any plans, proposals or understandings, formally or informally, to make acquisitions or strategic investments.

Our business could be harmed if we are unable to accurately forecast
customer demand for Bitcoin and to adequately manage our Bitcoin balances, including the Bitcoin balances we maintain for our own account
or Bitcoin balances that may be maintained for use in our rewards program.

Our purpose for holding Bitcoin in treasury is twofold:
(1) to fulfill Bitcoin rewards to customers in accordance with the terms and conditions of Fold’s user agreements (“Rewards
Treasury”); and (2) as a treasury asset with the intention to hold as a long-term investment (“Investment Treasury”).
Our goal is to maintain an amount of Bitcoin in our Rewards Treasury sufficient to satisfy our obligations to provide customer rewards
in accordance with our user agreements. Customer rewards are denominated in Bitcoin as of