Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 84

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1
Chunk 84
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 There can be no assurance that third parties that provide services to
us or to our customers on our behalf will continue to do so on acceptable terms, or at all. If any third parties do not adequately or
appropriately provide their services or perform their responsibilities to us or our customers on our behalf, such as if third-party service
providers to close their data center facilities without adequate notice, are unable to restore operations and data, fail to perform as
expected, or experience other unanticipated problems, we may be unable to procure alternatives in a timely and efficient manner and on
acceptable terms, or at all, and we may be subject to business disruptions, losses or costs to remediate any of the deficiencies, customer
dissatisfaction, reputational damage, legal or regulatory proceedings, or other adverse consequences which could harm our business.

48

We rely on our agreements with Fortress and BitGo to offer our
Bitcoin-related services. If our relationship with either Fortress or BitGo were to end, the ability to continue to offer our Bitcoin
services would be affected, which could affect our financial and business results.

We market certain Bitcoin services offered or supported
by the Bitcoin Service Providers to consumers through program agreements with the Bitcoin Service Providers. Fold utilizes both Fortress
and BitGo for the purpose of providing operational redundancy in the event of technical or regulatory limitations at one or the other.
In addition, certain states are supported by only one of the two Bitcoin Service Providers, and those states can change from time to time
based on the licensing status of each provider. If our relationship with one of the Bitcoin Service Providers were to end, or if either
of the Bitcoin Service Providers were to restrict or cease operations, our ability to continue to offer Bitcoin services would be affected,
which could adversely affect our financial and business results. In such an event, we may need to partner with a different financial institution
with authority to provide services substantially similar to our Bitcoin services to continue to offer these services. If we partner with
a new crypto service provider, our Bitcoin-related services would be disrupted and delayed as customers would be required to open new
accounts with a different Bitcoin service provider, and as we transition connectivity of our information technology systems to such different
financial institution partner. We also may face increased costs and compliance burdens if our program agreement with one of the Bitcoin
Service Providers is terminated. We entered into our agreement with Fortress in June, 2023, whereby Fortress would custody Bitcoin on
behalf of our customers itself or use BitGo as