Company: FLDDW
Filing Date: 2025-01-14
Form Type: S-4/A
Source: 0001213900-25-003167
Chunk: 334

Company: Fold Holdings, Inc.
Filing Date: 2025-01-14
Form: S-4/A
Chunk 334
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 committed to being a first mover in demonstrating how bitcoin can drive and preserve company value. Flywheel Effect We expect demand for bitcoin financial services to continue to increase over time, and Fold has positioned itself as a first mover to benefit from this acceleration. As the bitcoin network expands, we believe demand for our services will grow, fueling a cycle where we build more financial products to meet consumer needs, further increasing our cash flows, our bitcoin treasury, and the bitcoin holdings of our customers. This flywheel, powered by aligned incentives and our first -moveradvantage, positions Fold to capitalize on Bitcoin’s rapid growth and increasing value. Our Growth Strategy Fold aims to grow alongside the emerging bitcoin economy, which is expected to reach one billion users by 2030, based on a historical growth rate of 63.2% per year. Currently, there are over 50 million Americans that own bitcoin or other digital assets, which we believe creates significant opportunity for growth within the current market. We expect this segment to increasingly seek access to bitcoin financial services as their bitcoin wealth grows (bitcoin has grown an average of 155% each of the last five years). 204 We believe we are in the early stages of realizing the full value of our existing platform. We seek to capitalize on the structural advantages of being a first -mover, customer -centricand built -to-scaleplatform as we continue to grow our business and customer base. Marketing Demand for bitcoin financial services is accelerating as more participants enter the market. Despite this growth, there remains a significant gap in available solutions with the exception of Fold. Fold has capitalized on this opportunity by marketing to and building a valuable customer base characterized by high credit scores, strong earning potential, and high lifetime values. Fold has achieved this with customer acquisition costs of less than $10 per user compared to industry averages of over $300 per customer for traditional financial service providers. In contrast to our low customer acquisition costs, using data from the period July31, 2023 to June30, 2024, we estimate: •Lifetime value of Rewards Accounts (as defined below) to be 13 times the customer acquisition cost •Lifetime value of Verified Accounts (as defined below) to be 26 times the customer acquisition cost •Lifetime value of Premium Customers (as defined below) to be 37 times the customer acquisition cost Our customer acquisition strategy relies primarily on paid and organic online advertising and social media. Fold also relies on television (streaming and linear), paid search, organic web traffic, and email marketing.