Company: FLDDW
Filing Date: 2025-01-22
Form Type: S-4/A
Source: 0001213900-25-005202
Chunk: 358

Company: Fold Holdings, Inc.
Filing Date: 2025-01-22
Form: S-4/A
Chunk 358
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 payments business. Excluding merchant offers, our gross banking and payments revenues were $1.4 million for the nine months ended September 30, 2024 compared to $1.8 million for the nine months ended September 30, 2023. This decrease was driven primarily by (1) a reduction in the number of third -partybill payment merchants available to our customers, specifically Chase Bank; and (2) reduced interchange fees on certain merchant category codes, including those related to Bill Pay (MCC 6012). Merchant offer revenues remained consistent in the two periods.

225 Operating expenses Banking and payments costs Banking and payments costs include direct costs related to licensing, servicing, and processing transactions within our banking and payments products, including costs related to our Fold Card and Merchant Offers. Banking and payments costs from merchant offers decreased 6% from $14.6 million for the nine months ended September 30, 2023 to $13.8 million for the nine months ended September 30, 2024. This decrease was driven by improved contracts with merchant offer wholesalers that resulted in lower costs to obtain those offers. Excluding merchant offers, our banking and payments costs decreased to $0.7 million for the nine months ended September 30, 2024 compared to $0.9 million for the nine months ended September 30, 2023. Custody and trading costs Custody and trading costs consist primarily of licensing, servicing, and custodial fees related to our bitcoin exchange product. Custody and trading costs scale in proportion to our volumes. Costs incurred in the nine months ended September 30, 2023 were inclusive of non -recurringset up costs incurred to transition our bitcoin exchange product to Fortress Trust LLC. In August 2024, we entered into a direct relationship with BitGo Trust Company, Inc., and we expect to incur additional non -recurringcosts as some of our customers transition to a direct relationship with BitGo rather than holding their Bitcoin through Fortress. Compensation and benefits Our compensation and benefits costs for the nine months ended September 30, 2024 were $0.7 million lower than for the comparable period in 2023. In September 2023 we restructured our employee base by reducing certain positions, primarily operational and growth related roles. As of September 30, 2024, we employed a total of 22 full time employees . Marketing expenses Marketing expenses for the nine months ended September 30, 2024 decreased by $0.2 million, or