Company: FLDDW
Filing Date: 2025-01-22
Form Type: S-4/A
Source: 0001213900-25-005202
Chunk: 351

Company: Fold Holdings, Inc.
Filing Date: 2025-01-22
Form: S-4/A
Chunk 351
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 dollar amount depending on the nature of the transaction.

218 • Merchant Offers:Fold partners with a number of merchant offer wholesalers and individual merchants to offer gift cards, card -linkedoffers, and other affiliate offers. Fold has established an extensive partnership network across multiple vendors to provide customers with numerous and high quality merchant offers, and we regularly add new partnerships to optimize our offers network. For accounting purposes, the Company is the principal in gift card transactions and therefore recognizes (1) gross revenues for the sales price of the gift card to the customer, and (2) gross costs of sales for the cost of each gift card sold. Our merchant offers revenue is subject to seasonality and is typically higher around major shopping periods (ex. Amazon Prime Day) and in the fourth quarter, driven by holiday spending and travel. The Company notes that the above categories of revenue are combined into Banking and Payments given their interconnected nature. For example, for the nine months ended September30, 2024, 96% of merchant offers were purchased with a Fold Card. In addition, Visa incentive revenues are recorded in direct proportion to Fold Card volumes, and Fold primarily incentivizes users to sign up for its Fold+ subscription by reducing transaction fees and increasing rewards on Fold Card transactions as well as by providing access to exclusive merchant offers. While Fold assesses each of these revenue streams separately for revenue recognition purposes, they all derive primarily from Fold Card transactions which are funded by user accounts at Sutton Bank. Custody and trading revenue Fold partners with BitGo Trust Company, Inc. (“BitGo”) and Fortress Trust LLC (“Fortress”) (collectively “Bitcoin Service Providers”) to offer eligible customers the ability to buy, sell, store, and withdraw bitcoin using the Fold app via an “Exchange Account”. Fold earns revenue on these transactions via a combination of transaction fees and transaction spreads. Spreads on trades include two components: (1) spreads charged by our Bitcoin Service Providers, which include any spreads passed on by their liquidity providers, and (2) Fold’s spread. Spreads charged by our Bitcoin Service Providers are collected directly by those providers and are not recognized as revenue by Fold. For customers that do not have a Fold+ subscription, Fold also adds a transaction fee to certain buy and sell transactions as outlined in our terms and conditions which can change from time to time. Transaction fees are stated as a percentage of the purchase or sale amount (i.e. 1.5%). Other revenue We occasionally earn revenues from alternate sources, including Fold merchandise sales, sponsorship revenues, affiliate