Company: FLDDW
Filing Date: 2025-04-11
Form Type: 424B3
Source: 0001213900-25-031004
Chunk: 253

Company: Fold Holdings, Inc.
Filing Date: 2025-04-11
Form: 424B3
Chunk 253
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 has included the net balance of the December 2024 Initial
Investor Note within current liabilities, as the Public Company Date is not within the Company’s control and cannot be considered
probable to occur until the Merger transaction is consummated.

The Company has accounted for the December 2024
Initial Investor Note and the Investor Warrants using the relative fair value allocation method on the date of issuance. The estimated
fair values of the conversion option under the December 2024 Initial Investor Note and Investor Warrants were calculated under a Black-Scholes
model utilizing the enterprise valuation of Fold’s common shares as of December 31, 2024. The Company has elected not to subsequently
remeasure the convertible note. Further, the Company concluded that the Investor’s right to acquire the Additional Investor Note
is separately exercisable from the December 2024 Initial Investor Note and the Investor Warrants. Each of the Investor Notes will be sold
at an original issue discount of 5%.

<div align='center'>F-21

Fold, Inc.

Notes to Financial Statements</div>

The Company’s December 2024 Initial Investor Note
was comprised of the following components:

|                                          |     | December 31, 
 2024         |            |     | December 31, 
 2023         |   |
|:-----------------------------------------|:----|:-------------|-----------:|:----|:-------------|:--|
| Senior Secured Convertible Notes         |     | $            | 20,000,000 |     | $            | - |
| Less:                                    |     |              |            |     |              |   |
| Debt discount, net of amortization       |     |              |  6,636,805 |     |              | - |
| Debt issuance costs, net of amortization |     |              |  1,610,290 |     |              | - |
| Convertible debt, net                    |     | $            | 11,752,905 |     | $            | - |

The Company recorded interest expense under the
December 2024 Initial Investor Note based on a stated interest rate of 12% per annum, as well as the amortization of the debt discount
and debt issuance costs, which the Company computed using the effective interest method. The debt discount represents the 5% original
issue discount, as well as the bifurcation of the value ascribed to the Investor Warrants on a relative fair value basis