Company: FLDDW
Filing Date: 2025-07-11
Form Type: S-1
Source: 0001213900-25-062935
Chunk: 332

Company: Fold Holdings, Inc.
Filing Date: 2025-07-11
Form: S-1
Chunk 332
---
     |   | Three Months 
        Ended 
    March 31, 
         2025 |   |     |   |   Year Ended 
 December 31, 
         2024 |   |
|:--------------------------------------------------------------------------------------|:----|:--|-------------:|:--|:----|:--|-------------:|:--|
| Beginning of the period contract liability                                            |     | $ |      875,466 |   |     | $ |    1,012,010 |   |
| Revenue recognized from the contract liabilities included in the beginning balance    |     |   |     (141,204 | ) |     |   |     (442,045 | ) |
| Increases due to cash received net of amounts recognized in revenue during the period |     |   |       94,630 |   |     |   |      305,501 |   |
| End of period contract liability                                                      |     | $ |      828,892 |   |     | $ |      875,466 |   |

Contract costs

For the three months ended March 31, 2025 and 2024, we incurred $ million and $ million, respectively, of incremental costs to obtain and/or fulfill contracts with customers. These costs are related to the implementation of the credit card program and are included within the prepaid expenses and other current assets on the balance sheets. The contract asset is expected to be expensed once the credit card has been implemented and made available to customers.

F-66

Fold Holdings, Inc.
Notes to Unaudited Condensed Financial Statements

5. DIGITAL ASSETS

The Company holds digital assets, comprised solely of bitcoin, for two purposes: (1) to fulfill bitcoin rewards to customers in accordance with the terms and conditions of the Fold Rewards Program (“Rewards Treasury”); and (2) as a treasury asset with the intention to hold as a long-term investment (“Investment Treasury”). The Company purchases bitcoin for its Rewards Treasury to maintain a balance that is equal to or greater than its customer rewards liability and disburses bitcoin from its Rewards Treasury when customers redeem their rewards and the liability is satisfied.

The following is a summary of Fold’s bitcoin held in treasury as of the dates shown:

|                              |     |   |   March 31, 
        2025 |     |   | December 31, 
         2024 |
|:-----------------------------|:----|:--|------------:|:----|:--|