Company: FLDDW
Filing Date: 2025-04-11
Form Type: 424B3
Source: 0001213900-25-031004
Chunk: 231

Company: Fold Holdings, Inc.
Filing Date: 2025-04-11
Form: 424B3
Chunk 231
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 qualified custodians or via secure multi-signature cold storage vaults and performs a regular
assessment of these venues as part of its risk management process.

Inventories

Our inventories consist of prepaid merchant offers
for sale to our customers and physical debit cards to ship to consumers that participate in our debit card product. Inventory is stated
at the lower of cost on a first-in, first-out basis or net realizable value. Inventory that is obsolete or in excess of forecasted usage
is written down to its net realizable value based on the estimated selling prices in the ordinary course of business. Control of the Company’s
inventory is generally transferred to customers within a short period of time from purchase, and therefore the Company has not recognized
inventory obsolescence expense during the years ended December 31, 2024 or 2023.

Digital assets

The Company holds digital assets, comprised solely
of bitcoin, for two purposes:

| (1) | to fulfill rewards to customers in accordance with the terms       
 and conditions of Fold’s user agreements (“Rewards Treasury”); and |

| (2) | as a treasury asset with the intention to hold as a long-term 
 investment (“Investment Treasury”).                           |

The Company accounts for digital assets as indefinite-lived
intangible assets in accordance with ASC 350-60, Intangibles - Goodwill and Other – Crypto Assets. Under this guidance, digital
assets are initially measured at cost and subsequently remeasured at fair value, with gains or losses on remeasurement included in gain
(loss) within the accompanying statements of operations. Fair value is measured using the quoted price of bitcoin per the principal market
for the related digital assets at the time fair value is being measured.

The Company has determined that the gains or losses
on digital assets held for the purposes of satisfying its customer rewards are related to its core operations, and therefore classifies
gains and losses on the remeasurement of bitcoin held for that purpose as operating income or expense in its statements of operations.
The Company has separately determined that gains or losses on digital assets held as a long-term investment are not related to its core
operations, and therefore classifies all gains and losses on the remeasurement of these digital assets as a non-operating income or expense
in its financial statements.

The Company assigns costs to digital assets on
a first-in, first-out basis. Digital assets are classified as current in the Company’s accompanying balance sheets to the extent they
are being held to fulfill