Company: FLDDW
Filing Date: 2025-01-22
Form Type: S-4/A
Source: 0001213900-25-005202
Chunk: 326

Company: Fold Holdings, Inc.
Filing Date: 2025-01-22
Form: S-4/A
Chunk 326
---
 investment and financial use cases relevant to consumers’ everyday lives, such as saving, investing and making payments. The bitcoin industry is dynamic and rapidly evolving, offering substantial opportunities alongside significant risks. Continuous monitoring of technological, regulatory, and market developments is essential for stakeholders to navigate this complex landscape effectively. According to Yahoo Finance, 54% of the bitcoin mining ecosystem is powered by renewable energy sources (Yahoo Finance, Bitcoin mining’s green mile, January18, 2024). As of December18, 2024, based on aggregate US exchange markets data collected by CoinMarketCap, Bitcoin had increased by 2,502.9% in U.S. dollar terms since January 2019, making it among the best performing assets of the decade. The Bitcoin protocol includes programmatic, recurring events called “halvings”. Halving events reduce the block reward miners receive by 50%, which in turn reduces the supply of new bitcoin and leads to increased scarcity of new bitcoin. Halving events occur approximately once every four years and, historically, these events have been correlated with an increase in the bitcoin price. Historically, halvings have also proven to be beneficial for certain bitcoin -basedbusinesses. At Fold, this was evidenced through acceleration expansion of Fold’s user base from 2020 through 2021. Similar user expansion was seen at Coinbase in 2016 -2017and 2020 -2021.

| Year  |     | Fold’s EOP 
       User 
   Growth % |   |     | Bitcoin’s EOP 
         Price 
     Change %1 |    |
| 2019  |     |       49.5 | % |     |          92.2 | %  |
| 2020* |     |      196.9 | % |     |         303.2 | %  |
| 2021  |     |       84.5 | % |     |          59.7 | %  |
| 2022  |     |       10.7 | % |     |         (64.3 | )% |
| 2023  |     |        5.9 | % |     |         155.4 | %  |

____________ *Halving event occurred in this year (1)Source: market data from CoinMarketCap (August 26, 2024). We accordingly expect that the most recent halving from April 2024 may drive strong user growth in the near term.