Company: FLDDW
Filing Date: 2025-04-11
Form Type: 424B3
Source: 0001213900-25-031004
Chunk: 61

Company: Fold Holdings, Inc.
Filing Date: 2025-04-11
Form: 424B3
Chunk 61
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 tax regulations that apply to our operations could harm our business.

The nature of our business
requires the application of complex financial accounting rules, and there is limited guidance from accounting standard setting bodies
on certain topics. If financial accounting standards undergo significant changes, our operating results could be adversely affected.

The accounting rules and regulations
that we must comply with are complex and subject to interpretation by the Financial Accounting Standards Board (the “FASB”),
the SEC, and various other bodies formed to promulgate and interpret appropriate accounting principles. Recent actions and public comments
from the FASB and the SEC have focused on the integrity of financial reporting and internal controls and many companies’ accounting
policies are being subjected to heightened scrutiny by regulators and the public. Further, there has been limited precedent for the financial
accounting of crypto assets and related valuation and revenue recognition. Moreover, a change in these principles or interpretations could
have a significant effect on our reported financial results, and may even affect the reporting of transactions completed before the announcement
or effectiveness of a change. For example, on March 31, 2022, the staff of the SEC issued Staff Accounting Bulletin No. 121 (“SAB
121”), which represented a significant change regarding how a company safeguarding crypto assets held for its platform users reports
such crypto assets on its balance sheet and required retrospective application as of January 1, 2022. On January 30, 2025, the SEC issued
Staff Accounting Bulletin (“SAB”) No. 122 (“SAB 122”). SAB 122 rescinded the previously-issued SAB 121 guidance
with respect to accounting for obligations to safeguard digital assets that an entity holds for its customers. SAB 122 directs an entity
to apply Accounting Standards Codification (“ASC”) 450-20, Loss Contingencies to determine whether an entity has a liability
related to risk of loss from an obligation to safeguard digital assets for customers.

Uncertainties in or changes to
regulatory or financial accounting standards could result in the need to change our accounting methods and restate our financial statements
and impair our ability to provide timely and accurate financial information, which could adversely affect our financial statements, result
in a loss of investor confidence, and more generally impact our business, operating results, and financial condition.

Risks Related to Government
Regulation and Privacy Matters

The regulatory environment
in which the consumer finance industry operates could have a material adverse effect on our business and operating results.

The