Company: FLDDW
Filing Date: 2025-01-22
Form Type: S-4/A
Source: 0001213900-25-005202
Chunk: 497

Company: Fold Holdings, Inc.
Filing Date: 2025-01-22
Form: S-4/A
Chunk 497
---
 SAFEs, the current value of bitcoin was used as an estimate of the future value of a BTC -denominatedpayout. If there is not a Liquidity Event, the SAFE will result in the repayment of the bitcoin contributed at the issuance of the note. To value this scenario, which is weighted at an 18% probability, the Company considered the value of the underlying bitcoin as of the valuation date, reflecting an estimate of the future price. Fair value measurements associated with SAFEs were determined based on significant inputs not observable in the market, which represent Level 3 measurements within the fair value hierarchy. Increases and decreases in the fair value of the SAFEs can result from updates to assumptions such as expected timing and probability of a qualified financing event, or changes in discount rates, among other assumptions. Based on the Company’s assessment of the valuation of the SAFEs, performed by the Company’s third -partyvaluation specialists, none of the changes in the fair value of those instruments were due to changes in the Company’s own credit risk for the reporting periods presented. Judgment is used in determining these assumptions as of the initial valuation date and at each subsequent reporting period. Changes or updates to assumptions could have a material impact on the reported fair value and the change in fair value of SAFEs and the results of operations in any given period. The following table summarizes the significant inputs not observable in the market upon which the fair value measurements associated with the SAFEs were determined:

|             |     | VALUATION               
 TECHNIQUE               |     | UNOBSERVABLE                       
 INPUT                              |     |         AS OF 
 SEPTEMBER 30, 
          2024 |
|:------------|:----|:------------------------|:----|:-----------------------------------|:----|--------------:|
| Liabilities |     |                         |     |                                    |     |               |
| SAFEs       |     | Scenario-based approach |     | Probability weighting              |     |  1.0% – 80.0% |
|             |     |                         |     | Discount rate-Bitcoin SAFES        |     |        129.3% |
|             |     |                         |     | Discount rate-all other SAFEs      |     |         43.4% |
|             |     |                         |     | Remaining term to event (in years) |     |          0.75 |

F-44

Fold, Inc.
Notes to Unaudited Condensed Financial Statements 12. FAIR VALUE ME