Company: FLDDW
Filing Date: 2025-04-11
Form Type: 424B3
Source: 0001213900-25-031004
Chunk: 140

Company: Fold Holdings, Inc.
Filing Date: 2025-04-11
Form: 424B3
Chunk 140
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 GAAP. GAAP requires us
to make certain estimates and judgments that affect the amounts reported in our financial statements. We base our estimates on historical
experience, anticipated future trends, and other assumptions we believe to be reasonable under the circumstances. Because these accounting
estimates require significant judgment, our actual results may differ materially from our estimates. According to the U.S. Securities
and Exchange Commission (SEC), a “critical accounting estimate” is defined as an estimate that meets two criteria:

| 1. | Material impact: The accounting estimate must involve a significant degree of estimation uncertainty                     
 and have a material impact on the financial condition or operating performance as presented in the financial statements. |

| 2. | Judgment and complexity: The estimate involves a high degree of judgment and complexity, where                                     
 changes in the assumptions and estimates could significantly alter the financial portrayal of the company’s condition and results. |

Simple agreements for future equity (“SAFEs”)

The Company has issued certain SAFEs that grant
investors rights to participate in a future equity financing. The number of shares deliverable upon settlement is determined based on
the market price of the shares at the settlement date. The Company’s SAFEs are recorded as a liability in the accompanying balance
sheets and the Company records subsequent remeasurements in changes in fair value of SAFEs in the statements of operations. Issuance costs
related to the SAFEs are expensed in the period incurred.

Convertible note, net and warrants

The Company has accounted for the December 2024
Initial Investor Note and the related Investor Warrants issued 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 fair value of the December 2024 Initial Investor
Note included the fair value of the conversion option as well as the discounted future contractually obligated cash flows under scenarios
in which the Company achieved or did not achieve a public offering.

Recent accounting pronouncements

See “Recent accounting pronouncements”
described in Note 2, Summary of Significant Accounting Policies within Notes to the Financial Statements.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Macroeconomic trends impacting our market

The following macroeconomic factors as they relate
to bitcoin specifically impact our business:

| ● | Awareness: