Company: FLDDW
Filing Date: 2025-04-11
Form Type: 424B3
Source: 0001213900-25-031004
Chunk: 53

Company: Fold Holdings, Inc.
Filing Date: 2025-04-11
Form: 424B3
Chunk 53
---
 actions and other events relating to companies operating in the digital asset industry, including the filings for bankruptcy
protection by Three Arrows Capital, Celsius Network, Voyager Digital, FTX Trading and Genesis Global Capital, the closure or liquidation
of certain financial institutions that provided lending and other services to the digital assets industry, including Signature Bank and
Silvergate Bank, SEC previous enforcement actions against Coinbase, Inc. and Binance Holdings Ltd., the placement of Prime Trust, LLC
into receivership following a cease-and desist order issued by Nevada’s Department of Business and Industry, and the filing and
subsequent settlement of a civil fraud lawsuit by the New York Attorney General against Genesis Global Capital, its parent company Digital
Currency Group, Inc., and former partner Gemini Trust Company, have highlighted the counterparty risks applicable to owning and transacting
in digital assets.

Although these bankruptcies,
closures, liquidations and other events have not resulted in any loss or misappropriation of our Bitcoin, nor have such events adversely
impacted our access to our Bitcoin, they created significant volatility in the markets for cryptocurrency generally and for Bitcoin particularly.
Additional bankruptcies, closures, liquidations, regulatory enforcement actions or other events involving participants in the digital
assets industry in the future could result in market prices being subject to erratic and abrupt market movement, which could harm our
business. Further, because there is no centralized authority which determines the price of Bitcoin, pricing often differs between exchanges.
When some exchanges are viewed as higher risk, that price differential can widen as traders attempt to exploit these differences. Volatility
in the price of Bitcoin, as well as the lack of a standard price, could lead consumers to see Bitcoin as an unsafe asset, which would
result in losses of customers and resulting harm to our business. In addition, if we were to attempt to monetize the Bitcoin we hold on
our balance sheet, such price volatility could lead to trading losses, impacting our financial position.

For example, based on aggregate
US exchange markets data collected by CoinMarketCap, on December 18, 2023, the price of Bitcoin at 10:00 P.M. UTC was $42,623.54.
On December 18, 2024, the price of Bitcoin at 10:00 P.M. UTC was $100,041.54. Between those dates, Bitcoin experienced significant
volatility. For example, on August 1, 2024, the price of Bitcoin was $65,353.50,