Company: FLDDW
Filing Date: 2025-04-11
Form Type: 424B3
Source: 0001213900-25-031004
Chunk: 128

Company: Fold Holdings, Inc.
Filing Date: 2025-04-11
Form: 424B3
Chunk 128
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. Interchange fees are set by the card network (Visa) and charged as a percentage 
 of the total sale. The amount of interchange earned by Fold is dependent on a wide variety of factors, including whether the transaction  
 is processed in- or out-of-network, the merchant and their assigned merchant category code (“MCC Code”), and the type of purchase         
 being made (signature v PIN debit transaction), among other variables. Interchange rates are subject to change by the card network (Visa) 
 at any time.                                                                                                                              |

| ● | Transaction Fees: Certain fees are charged to our cardholders depending on their membership tier                                          
 or the nature of the transaction. These fees primarily include instant transfer fees, international transaction fees, and ATM fees. These 
 fees are stated as either a percentage of each transaction or as a fixed dollar amount depending on the nature of the transaction.        |

| ● | Merchant Offers: Fold partners with a number of merchant offer wholesalers and individual merchants                                        
 to offer gift cards, card-linked offers, and other affiliate offers. Fold has established an extensive partnership network across multiple 
 vendors to provide customers with numerous and high quality merchant offers, and we regularly add new partnerships to optimize our offers  
 network. For accounting purposes, the Company is the principal in gift card transactions and therefore recognizes (1) gross revenues for   
 the sales price of the gift card to the customer, and (2) gross costs of sales for the cost of each gift card sold. Our merchant offers    
 revenue is subject to seasonality and is typically higher around major shopping periods (ex. Amazon Prime Day) and in the fourth quarter,  
 driven by holiday spending and travel.                                                                                                     |

The Company notes that the above categories of
revenue are combined into Banking and Payments given their interconnected nature. For example, for the year ended December 31, 2024, 96%
of merchant offers were purchased with a Fold Debit Card. In addition, Fold primarily incentivizes users to sign up for its Fold+ subscription
by reducing transaction fees and increasing rewards on Fold Debit Card transactions as well as by providing access to exclusive merchant
offers. While Fold assesses each of these revenue streams separately for revenue recognition purposes, they all derive primarily from
Fold Debit Card transactions which are funded by user accounts at Sutton Bank.

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Custody and trading revenue

Fold partners with BitGo Trust Company, Inc. (“BitGo”)
and Fortress Trust LLC (“Fortress”)