Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 60

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1
Chunk 60
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 value of our business and could cause volatility
in the price of our stock.

36

The trading volume of Bitcoin typically increases
during periods of extreme volatility. For example, in the days following the federal elections in November 2024, the price of Bitcoin
rose sharply from $69,289.27 on November 2 to $87,250.43 on November 14, and volumes increased from 18,184,612,091 to 87,616,705,248 during
that time period according to aggregate data from US exchange markets collected by CoinMarketCap. Such volume increases can lead to extreme
pressures on our and our partners’ platforms and infrastructure that can lead to inadvertent suspension of services across parts
of the platforms or the entire platforms. As a result, from time to time we may experience outages. Outages can lead to increased customer
service expense, can cause customer loss and reputational damage, result in inquiries and actions by regulators, and can lead to other
damages for which we may be responsible, any of which could harm our business.

Risks Related to Bitcoin

Due to unfamiliarity and some negative publicity associated with
Bitcoin products and services, confidence or interest in our platforms may decline.

Bitcoin is relatively new. Many of our competitors
offering Bitcoin-related products and services are unlicensed, unregulated, operate without supervision by any governmental authorities,
and do not provide the public with significant information regarding their ownership structure, management team, corporate practices,
cybersecurity, and regulatory compliance. As a result, customers and the general public may lose confidence or interest in Bitcoin platforms,
including platforms like ours that partner with regulated providers.

Negative perception, a lack of stability and standardized
regulation in the cryptoeconomy, and the closure or temporary shutdown of crypto asset platforms due to fraud, business failure, hackers
or malware, or government mandated regulation, and associated losses suffered by customers may continue to reduce confidence or interest
in the cryptoeconomy and result in greater volatility of the prices of assets, including significant depreciation in value. Any of these
events could have an adverse impact on our business and our customers’ perception of us, including decreased use of our platform
and loss of customer demand for our products and services.

Transferring Bitcoin on the Bitcoin blockchain involves risks,
which could result in loss of customer assets or our proprietary assets, customer disputes and other liabilities, which could adversely
impact our business.

In order to transfer Bitcoin on the Bitcoin blockchain,
a person must