Company: FLDDW
Filing Date: 2025-04-11
Form Type: 424B3
Source: 0001213900-25-031004
Chunk: 33

Company: Fold Holdings, Inc.
Filing Date: 2025-04-11
Form: 424B3
Chunk 33
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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.

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.

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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 95% 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 95% 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 this sub-custodial arrangement, Fortress sends Fold customer funds to an omnibus BitGo
cold