Company: FLDDW
Filing Date: 2025-04-11
Form Type: 424B3
Source: 0001213900-25-031004
Chunk: 45

Company: Fold Holdings, Inc.
Filing Date: 2025-04-11
Form: 424B3
Chunk 45
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 ability to manage our operations.

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While Fold regularly evaluates
strategic opportunities, Fold does 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 the date the rewards are earned,
and therefore we try to purchase Bitcoin for our Rewards Treasury at a similar cost basis to the rewards earned by our customers. If the
price of Bitcoin were to decrease, we may need to fulfill customer reward obligations with Bitcoin that we have previously purchased at
a higher price, which could adversely impact our financial position and operating results. In addition, if the price of Bitcoin were to
increase, demand for Bitcoin on the open market may also increase. If we were unable to obtain additional Bitcoin for our Rewards Treasury
in a cost-effective manner, that may adversely impact our financial position and operating results.

Our investments in
Bitcoin are subject to volatile market prices and risks of loss.

As of December 31, 2024, we had
approximately $102.1 million of Bitcoin in our Treasury accounts. The price of Bitcoin has been highly volatile and may continue
to be volatile in the future, including as a result of various associated risks and uncertainties. For example, the prevalence of Bitcoin
is a relatively recent trend, and the long-term adoption of Bitcoin by investors, consumers, and businesses remains uncertain. The lack
of a physical form, reliance on technology for creation, existence, and transactional validation, and decentralization may subject Bitcoin’s
integrity to the threat of malicious attacks and technological obsolescence. To the extent the market value of the Bitcoin we hold decreases
materially relative to our cost basis, our financial condition may be adversely impacted.

If there are future