Company: FLDDW
Filing Date: 2025-01-22
Form Type: S-4/A
Source: 0001213900-25-005202
Chunk: 333

Company: Fold Holdings, Inc.
Filing Date: 2025-01-22
Form: S-4/A
Chunk 333
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 year. Currently, there are over 50 million Americans that own bitcoin or other digital assets, which we believe creates significant opportunity for growth within the current market. We expect this segment to increasingly seek access to bitcoin financial services as their bitcoin wealth grows (bitcoin has grown an average of 155% each of the last five years). 204 We believe we are in the early stages of realizing the full value of our existing platform. We seek to capitalize on the structural advantages of being a first -mover, customer -centricand built -to-scaleplatform as we continue to grow our business and customer base. Marketing Demand for bitcoin financial services is accelerating as more participants enter the market. Despite this growth, there remains a significant gap in available solutions with the exception of Fold. Fold has capitalized on this opportunity by marketing to and building a valuable customer base characterized by high credit scores, strong earning potential, and high lifetime values. Fold has achieved this with customer acquisition costs of less than $10 per user compared to industry averages of over $300 per customer for traditional financial service providers. In contrast to our low customer acquisition costs, using data from the period July31, 2023 to June30, 2024, we estimate: •Lifetime value of Rewards Accounts (as defined below) to be 13 times the customer acquisition cost •Lifetime value of Verified Accounts (as defined below) to be 26 times the customer acquisition cost •Lifetime value of Premium Customers (as defined below) to be 37 times the customer acquisition cost Our customer acquisition strategy relies primarily on paid and organic online advertising and social media. Fold also relies on television (streaming and linear), paid search, organic web traffic, and email marketing. Referrals and spend incentives drive incremental acquisition and engagement. Our marketing content is produced and edited by a lean, experienced, in -houseteam, well -versedin tailoring messages for our target segments. Product marketing efforts are aimed at increasing member engagement, through -funnelconversion, and retention at a low cost. Our customer acquisition channels combine a mix of online and offline, as well as paid and unpaid, channels. They include marketing affiliates, sponsorships, radio, direct mail, organic web traffic, email marketing, and online advertising, among others. Our primary strategic growth initiatives are as follows: 1. Continue Fundamental Execution We remain focused on enhancing our bitcoin financial services platform by continuing to invest in product development, sales, and marketing. We believe these efforts are key to expanding our user base and strengthening our partnerships