Company: FLDDW
Filing Date: 2025-01-22
Form Type: S-4/A
Source: 0001213900-25-005202
Chunk: 331

Company: Fold Holdings, Inc.
Filing Date: 2025-01-22
Form: S-4/A
Chunk 331
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 Starbucks’ Rewards Program has over 33million members and grew 7% over the last year. However, traditional rewards are often tied to specific ecosystems and frequently lose value over time. In contrast, bitcoin rewards offer the potential for value appreciation of the rewards customers receive. We believe offering rewards that have potential to grow in value differentiates Fold from traditional loyalty programs and positions Fold at the forefront of what we believe will be a new financial service trend. As of June30, 2024, we have distributed nearly $20million in bitcoin rewards — the value of which as of such date was more than double the dollar value of such rewards at the time of distribution. Graph shows relative value of cash rewards vs bitcoin rewards using the aggregate Fold rewards as a case study using rewards values and bitcoin pricing data as of June 30, 2024. Bitcoin Treasury & Accumulation Strategy In addition to our core operating business, Fold has adopted a bitcoin treasury strategy that aligns our corporate goals with the products we offer to our customers. We consider bitcoin to be an important strategic reserve asset that, due to its finite fixed supply, has the ability to mitigate inflationary trends. Bitcoin is a unique store of value with a finite fixed supply, which we believe provides price appreciation potential for bitcoin in both the near- and long -term. We believe that the adoption tailwinds powering bitcoin’s growth over the last 15 years will continue with potential to accelerate, providing attractive value growth opportunities. 203 As of September30, 2024, Fold has accumulated more than 1,103 bitcoin in our treasury, and we plan to continue to accumulate bitcoin over time. We view our bitcoin holdings as a long -termstrategic investment 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