Company: FLDDW
Filing Date: 2025-04-11
Form Type: 424B3
Source: 0001213900-25-031004
Chunk: 56

Company: Fold Holdings, Inc.
Filing Date: 2025-04-11
Form: 424B3
Chunk 56
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 against
us, and financial liabilities, any of which could adversely affect our business.

BitGo has represented that they
will safekeep all Bitcoin held in custody by them, and that they have procedures to process redemptions and withdrawals expeditiously,
following the terms of the applicable user agreements. Our customers have not experienced excessive redemptions or withdrawals, or prolonged
suspended redemptions or withdrawals, of Bitcoin to date. However, similar to traditional financial institutions, our Bitcoin Service
Providers may experience temporary process-related withdrawal delays. For example, like traditional financial institutions, our Bitcoin
Service Providers may experience such delays if there is a significant volume of withdrawal requests that is vastly beyond anticipated
levels. This does not mean our Bitcoin Service Providers cannot or will not satisfy withdrawals, but this may mean a temporary delay in
satisfying withdrawal requests, which our customers still expect to be satisfied within the withdrawal timelines set forth in the applicable
user agreements or otherwise communicated by us or our Bitcoin Service Providers. To the extent we or one of our Bitcoin Service Providers
have process-related delays, even if brief or due to blockchain network congestion or heightened redemption activity, and within the terms
of an applicable user agreement or otherwise communicated by us, we may experience increased customer complaints and damage to our brand
and reputation and face additional regulatory scrutiny, any of which could adversely affect our business.

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A temporary or permanent
blockchain “fork” to Bitcoin could adversely affect our business.

Blockchain protocols, including
Bitcoin, are open source. Any user can download the software, modify it, and then propose that Bitcoin users and miners adopt the modification.
When a modification is introduced and a substantial majority of users and miners consent to the modification, the change is implemented
and the Bitcoin protocol network remains uninterrupted. However, if less than a substantial majority of users and miners consent to the
proposed modification, and the modification is not compatible with the software prior to its modification, the consequence would be what
is known as a “fork” (i.e., “split”) of the impacted blockchain protocol network and respective blockchain, with
one prong running the pre-modified software and the other running the modified software. The effect of such a fork would be the existence
of two parallel versions of the Bitcoin protocols running simultaneously, but with each split network’s Bitcoin lacking interchangeability.

Bitcoin has previously been subject
to “forks” that resulted in the creation of new networks, including Bitcoin Cash ABC,