Company: FLDDW
Filing Date: 2025-04-11
Form Type: 424B3
Source: 0001213900-25-031004
Chunk: 137

Company: Fold Holdings, Inc.
Filing Date: 2025-04-11
Form: 424B3
Chunk 137
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 and 2023.

Other income (expense)

Change in fair value of SAFEs results from unrealized
gain or loss due to the change in fair value of our long-term SAFE note liabilities, which is determined based on the aggregated, probability-weighted
average of the outcomes of certain scenarios. For accounting purposes, outstanding SAFEs are classified as liabilities and the change
in their fair value is reflected in the statement of operations. However, Fold’s SAFEs were structured to be settled via the delivery
of common and/or preferred shares upon execution of an equity financing or liquidity event. On February 14, 2025, upon finalization of
the Merger Agreement with FTAC Emerald, all SAFE notes held by the Company converted into common shares.

Gain (loss) on digital assets - investment treasury
include unrealized gains (losses) resulting from the remeasurement gain or loss for the change in fair value of bitcoin held by Fold as
a long-term investment. The price of bitcoin appreciated to approximately $93.4 thousand as of the year ended December 31, 2024. The price
change is the primary driver of gains for digital assets – investment treasury for the year ended December 31, 2024.

Financial condition

Liquidity and Capital Resources

Our ability to meet our requirements and plans
for cash, including meeting our working capital and capital expenditure requirements, will depend on many factors, including market acceptance
of bitcoin, our ability to attract and retain customers on our platform, the continuing market acceptance of our products and services,
our ability to timely and effectively introduce new products and services on our platform, expansion of sales and marketing activities,
and overall economic conditions.

We believe that our existing cash and cash equivalents
will be sufficient to meet our working capital needs, including any transaction expenditures related to our Merger Agreement with FTAC
Emerald Acquisition Corp., for at least the next 12 months.

As of December 31, 2024, the Company had cash
and cash equivalents of $18.3 million.

As of December 31, 2024, we held 700 bitcoin in
our Investment Treasury that was restricted from use as operating capital. Upon conversion of the SAFEs on February 14, 2025, the restrictions
for use of that bitcoin were removed. The value of that bitcoin on February 14, 2025 was $68.3 million. Our Investment Treasury is considered
a long-term investment and we do not have plans or intentions to