Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 240

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1A
Chunk 240
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. Our financial statements and disclosures, as a whole, will
be available through periodic filings on a quarterly basis, and compliant with annual audit requirements of Article 3 of Regulation S-X.

25

As of December 31, 2024, 99%+ of our proprietary Bitcoin was held at
BitGo. Bitcoin that we hold at BitGo is held in separate wallets under Fold’s name and is not commingled with the Bitcoin held on
behalf of our customers, BitGo’s other customers, or BitGo itself. As of December 31, 2024, 99% of our proprietary Bitcoin that
we custody with BitGo was held in multi-signature cold storage wallets, with the remainder held in self-managed hot wallets for operational
purposes.

Bitcoin held on behalf of our customers is stored
in one of three places: (1) directly at Fortress; (2) directly at BitGo, or (3) at BitGo in a sub-custodial arrangement with Fortress.

(1)Bitcoin held on behalf of our customers directly at Fortress
is held primarily in omnibus cold storage wallets for which Fortress controls the private keys. At any given time, approximately 90%
of Bitcoin held in this capacity is held in omnibus cold storage wallets, with the remainder held in hot wallets used to facilitate customer
withdrawals and other real-time operational needs.

(2)Bitcoin held on behalf of our customers directly at BitGo
is held primarily in omnibus cold storage wallets for which BitGo controls the private keys. At any given time, approximately 90% of
Bitcoin held in this capacity is held in omnibus cold storage wallets, with the remainder held in hot wallets used to facilitate customer
withdrawals and other real-time operational needs.

(3)Fortress also utilizes BitGo as a sub-custodian. Within this
sub-custodial arrangement, Fortress sends Fold customer funds to an omnibus BitGo cold storage wallet that is dedicated to Fold customer
assets. Those funds are not commingled with Fold’s proprietary Bitcoin, BitGo’s other customers, or BitGo itself. BitGo controls
the keys to this wallet. 100% of this Bitcoin is held in cold storage.

As of December 31, 2024, 1% of Fold customer Bitcoin was held directly
at Fortress, 22% was held directly at BitGo, and 77% was held at BitGo in a sub-custodial capacity for Fortress.

We hold