Company: FLDDW
Filing Date: 2025-01-14
Form Type: S-4/A
Source: 0001213900-25-003167
Chunk: 333

Company: Fold Holdings, Inc.
Filing Date: 2025-01-14
Form: S-4/A
Chunk 333
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 and not as a trading asset. We believe holding bitcoin on our corporate balance sheet has the potential to provide stockholder value for several reasons: Price appreciation:Bitcoin has experienced meaningful price appreciation over the past decade, significantly outperforming the S&P 500, US treasury yields, and other traditional investments over the same time frame. We believe bitcoin adoption will continue to grow rapidly over the coming years, which has potential to provide an opportunity for continued price appreciation. Inflation hedge:Bitcoin, with its capped supply, has the potential to serve as a long -termhedge against inflation. We expect central banks to continue to devalue fiat currencies over the near term through inflationary monetary policies. Diversification:Bitcoin often shows low correlation with traditional financial assets like stocks, bonds, and commodities, offering diversification benefits to the overall portfolio. Liquidity:Unlike traditional financial markets, the market for bitcoin operates 24/7, offering constant access to liquidity. Enhanced brand perception:Companies investing in bitcoin may be viewed by certain consumers as more forward -thinking, appealing to progressive, tech -savvyconsumers and investors. Balance sheet management:We believe building a solid balance sheet with potential for growth will provide a solid foundation for us to better operate and grow our business over time. These factors suggest strategic benefits for Fold incorporating bitcoin into our financial strategies, aligning with modern financial trends and technological advancements. We believe Fold is on track to be the first publicly traded pure play bitcoin financial services company and the first public company to debut with more than 1,000 bitcoin in treasury. A number of public companies have implemented a bitcoin treasury strategy similar to Fold’s, including MicroStrategy Incorporated, Block, Inc., Tesla, Inc., Nexon Co., Ltd. and Semler Scientific, Inc. We anticipate many more companies will adopt a bitcoin treasury strategy to leverage bitcoin as a strategic asset, driven by the success seen by MicroStrategy, which as of September6, 2024 had grown 717% since adopting a bitcoin treasury strategy compared to the 418% growth of bitcoin over the same period. With nearly $7 trillion in cash reserves held by public companies according to a February16, 2024 report by Yahoo Finance, there is significant potential for additional allocation into bitcoin. Due to the limited supply of bitcoin, the total number of companies that can own more than 1,000 bitcoin would be less than 0.1% of total U.S. companies, assuming 33million total U.S. companies. This is why Fold is