Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 39

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1
Chunk 39
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 and
BitGo Trust Company, Inc. (“BitGo” and together with Fortress, the “Bitcoin Service Providers”) safeguard Bitcoin
on behalf of our customers. Safeguarding customers’ cash and Bitcoin is integral to the trust we build with our customers. We believe
our and our partners’ policies, procedures, operational controls and controls over financial reporting, protect us from material
risks surrounding the safeguarding of these assets and conflicts of interest. Our partners’ controls include among others, controls
over the segregation of corporate Bitcoin balances from customer Bitcoin balances, controls over the processes of customer Bitcoin deposits
and customer Bitcoin withdrawals and corporate and customer fiat balances. 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.

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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