Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 87

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1
Chunk 87
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, impose requirements on us that are cumbersome or that we cannot satisfy, our business may be materially and adversely
affected.

Any change to the Bitcoin Service Providers’ fee schedules
could adversely impact our business.

We rely on our cryptocurrency custody providers
to process customers’ Bitcoin transactions and we pay these providers fees for their services. From time to time, our crypto custody
providers have increased, and may increase in the future, the fees they charge for the provision of custody services and for transactions
that use their networks. While these fees are payable directly by our customers, any increases in such fees might result in the loss of
customers to other custodians or cryptocurrency platforms.

We are subject to economic and geopolitical risk, business cycles,
and the overall level of consumer, business and government spending, which could negatively affect our business, financial condition,
results of operations, and cash flows.

The payments technology industry depends heavily
on the overall level of consumer, business and government spending. We are exposed to general economic conditions that affect consumer
confidence, spending, and discretionary income and changes in consumer purchasing habits. A sustained deterioration in general economic
conditions in the markets in which we operate, supply chain disruptions, inflationary pressure or interest rate fluctuations may adversely
affect our financial performance by reducing demand for cryptocurrencies and cryptocurrency-based services and thereby reducing transaction
volumes. A reduction in transaction volumes could result in a decrease in our revenues and profits.

A downturn in the economy could force retailers
or financial institutions to close or petition for bankruptcy protection, resulting in lower revenue and earnings for us. We also have
a certain amount of fixed costs, such as rents and salaries, which could limit our ability to quickly adjust costs and respond to changes
in our business and the economy. Changes in economic conditions could also adversely affect our future revenues and profits and cause
a materially adverse effect on our business, financial condition, results of operations, and cash flows.

50

In addition, our business, growth, financial condition
or results of operations could be materially adversely affected by instability or changes in a country’s or region’s economic
conditions; inflation; changes in laws or regulations or in the interpretation of existing laws or regulations, whether caused by a change
in government or otherwise; increased difficulty of conducting business in a country or region due to actual or potential political or
military conflict; or action by the U.S. or foreign governments that may restrict our ability to transact business in a foreign country
or with certain foreign individuals or entities.