Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 13

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1
Chunk 13
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the full value of our existing platform. We seek to capitalize on the structural advantages of being a first-mover, customer-centric and
built-to-scale platform as we continue to grow our business and customer base.

Marketing

Demand for bitcoin financial services is accelerating
as more participants enter the market. Despite this growth, there remains a significant gap in available solutions with the exception
of Fold.

Fold has capitalized on this opportunity by marketing to and building
a valuable customer base characterized by high credit scores, strong earning potential, and high lifetime values. Fold has achieved this
with customer acquisition costs of less than $10 per user compared to industry averages of over $300 per customer for traditional financial
service providers.

Our customer acquisition strategy relies primarily
on paid and organic online advertising and social media. Fold also relies on television (streaming and linear), paid search, organic web
traffic, and email marketing. Referrals and spend incentives drive incremental acquisition and engagement. Our marketing content is produced
and edited by a lean, experienced, in-house team, well-versed in tailoring messages for our target segments.

Product marketing efforts are aimed at increasing
member engagement, through-funnel conversion, and retention at a low cost. Our customer acquisition channels combine a mix of online and
offline, as well as paid and unpaid, channels. They include marketing affiliates, sponsorships, radio, direct mail, organic web traffic,
email marketing, and online advertising, among others.

Our primary strategic growth initiatives are as
follows:

1. Continue Fundamental Execution

We remain focused on enhancing our bitcoin financial
services platform by continuing to invest in product development, sales, and marketing. We believe these efforts are key to expanding
our user base and strengthening our partnerships. We also aim to optimize customer lifetime value (“LTV”) through new products
and features, enhanced retention strategies, and optimized pricing models. We expect our scalable platform, built through strategic investments,
to continue to deliver operational leverage as we grow.

2. Proven Acquisition Channels

Fold’s growth to date has been predominantly
fueled by organic word of mouth, partner co-marketing, and active social engagement which have contributed to low customer acquisition
costs (“CAC”). We believe these channels will continue to play a critical role in sustaining our growth trajectory. To further
accelerate expansion, we plan to increase investments in paid marketing and affiliate opportunities, with the objective of maintaining
low CAC while enhancing the LTV per user.

3. Expand Relationship with Existing and
New