Company: FLDDW
Filing Date: 2025-04-11
Form Type: 424B3
Source: 0001213900-25-031004
Chunk: 144

Company: Fold Holdings, Inc.
Filing Date: 2025-04-11
Form: 424B3
Chunk 144
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, which they provide during their redemption request. In the future, Fold may offer the ability
for users to redeem their rewards for other goods and services but has no immediate plans to do so.

Customer rewards are valued in
bitcoin as of the date the rewards are earned, and therefore we try to match the cost basis of those rewards with the cost basis of our
Rewards Treasury. To do so, Fold typically purchases bitcoin once per day in an amount that approximates the amount of rewards earned
by customers on that day. Our goal is to always maintain an amount of bitcoin in our Rewards Treasury equal to or greater than our
customer rewards obligations. We monitor the balances of our Rewards Treasury and customer rewards obligations on a daily basis to ensure
that we have appropriate reserves to fulfill customer obligations. In the event that the balance of our Rewards Treasury were to fall
below the balance of our corresponding customer rewards liability, Fold may utilize excess bitcoin reserves from our Investment Treasury
to fulfill customer liabilities. Fold purchases bitcoin for our Investment Treasury on an intermittent basis when we have available discretionary
cash balances to do so.

Custody &
Trading

Fold partners with Fortress Trust
LLC, a Nevada-chartered trust company (“Fortress”), and BitGo Trust Company, Inc., a South Dakota-chartered trust company
(“BitGo”) (collectively, the “Bitcoin Service Providers”), to offer eligible customers the ability to buy, sell,
store, and withdraw Bitcoin through Fold. These Bitcoin Service Providers are both qualified custodians, meaning they are qualified under
applicable state banking, payments or trust laws to custody digital assets, that offer institutional-grade custody, liquidity, and security
solutions for digital assets, specializing in multi-signature wallets and cold storage services for bitcoin. Additional information with
respect to the Bitcoin Service Providers’ respective qualifications under applicable law can be found online at https://fortresstrust.com/licenses,
with respect to Fortress, and https://www.bitgo.com/company/licenses, with respect to BitGo. Fold does not directly hold or control
any of its customers’ digital assets.

Fold utilizes both Fortress and
BitGo for the purpose of providing operational redundancy in the event of technical or regulatory limitations at one or the other. In
addition, certain states are supported by only one of the two Bitcoin Service Providers, and those states can change from time to time
based on the licensing status of each provider.

To access Custody &
Trading products, Fold’s customers are first onboarded to the Fold