Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 44

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1
Chunk 44
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, expose us to regulatory enforcement actions, including substantial fines, limit our
ability to provide services, subject us to litigation, significant financial losses, damage our reputation, and adversely affect our business,
operating results, financial condition, and cash flows.

BitGo has advised us that it carries a $250 million
umbrella insurance policy for the digital assets it custodies. However, this insurance policy covers all digital assets custodied by BitGo,
not only those held on behalf of us and our customers. In addition, BitGo has not contractually committed to maintain any specific levels
of insurance coverage, and has no obligation to reimburse us for any damages due to loss or theft of Bitcoin (including claims by our
customers) except where such loss or theft is due to BitGo’s gross negligence or willful misconduct.

Other Risks Related to Our Business and Financial Position

If we fail to retain existing customers or add new customers,
or if our customers decrease their level of engagement with our products, services and platform, our business, operating results, and
financial condition may be significantly harmed.

Our success depends on our ability to retain existing
customers and attract new customers, including developers, to increase engagement with our products, services, and platform. To do so,
we must continue to offer leading technologies and ensure that our products and services are secure, reliable, and engaging. We must also
expand our products and services, and offer competitive prices in an increasingly crowded and price-sensitive market. There is no assurance
that we will be able to continue to do so, that we will be able to retain our current customers or attract new customers, or keep our
customers engaged. Any number of factors can negatively affect customer retention, growth, and engagement, including if:

●customers increasingly engage with competing products and
services, including products and services that we are unable to offer due to regulatory reasons;

●we fail to introduce new and improved products and services,
or if we introduce new products or services that are not favorably received;

●there are changes in sentiment about the quality or usefulness
of our products and services or concerns related to privacy, security, fiat pegging or other factors;

28

●there are adverse changes in our products and services that
are mandated by legislation, regulatory authorities, or litigation;

●customers perceive Bitcoin to be a bad investment;

●technical or other problems prevent us from delivering our
products and services with the speed, functionality, security, and reliability that our customers expect;

●cybersecurity incidents,