Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 237

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1A
Chunk 237
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 a critical banking or insurance relationship could adversely
impact our business, operating results, and financial condition.

Although a number of significant U.S. banks
and investment institutions, such as Goldman Sachs, Citigroup, J.P. Morgan, Bank of America and BlackRock, have indicated they plan
to begin allowing their customers to carry and invest in Bitcoin, the acceptance and use of Bitcoin by banks is relatively uncommon and
may never become mainstream. Indeed, a number of companies and individuals engaged in Bitcoin-related activities have been unable to find
banks or financial institutions that are willing to provide them with banking services. Similarly, a number of companies and individuals
or businesses associated with Bitcoin may have had and may continue to have their existing banking services discontinued with financial
institutions in response to government action. We also may be unable to obtain or maintain these services for our business. To date, we
have not experienced such issues in finding banks or financial institutions willing to provide services to us that has had a material
impact on our business, financial condition or results of operations.

We rely on bank relationships to provide our products
and services and to connect us to mobile card networks. As a bitcoin-asset related business, our banking partners view us as a higher
risk customer for purposes of their anti-money laundering programs. We may face difficulty establishing or maintaining banking relationships
due to instability in the global banking system, increasing regulatory uncertainty and scrutiny, or our banking partners’ policies.
The loss of these banking partners or the imposition of operational restrictions by these banking partners and the inability for us to
utilize other redundant financial institutions may result in a disruption of business activity as well as regulatory risks.

However, if these financial institutions are subject
to receivership, resolution or failure, or if banking relationships become severely limited or unavailable to Bitcoin participants, there
could be temporary delays in or unavailability of services in that are critical to our or our partners’ operations, developers or
customers, a further limit on available vendors, reduced quality in services For example, while our business and operations were not materially
affected by the closures of Silvergate Capital Corp. and Signature Bank and the cessation of their real-time fiat currency payment networks
in March 2023, large cryptoeconomy participants experienced a temporary inability to transfer fiat currencies outside of standard
business hours.

We also rely on insurance carriers to insure customer
losses resulting from a breach of our physical security, cyber security, or by employee or third party theft. Our ability to