Company: FLDDW
Filing Date: 2025-03-28
Form Type: 10-K
Source: 0001013762-25-004107
Chunk: 37

Company: Fold Holdings, Inc.
Filing Date: 2025-03-28
Form: 10-K
Item: Item 1
Chunk 37
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 or unavailability of services in that are critical to our or our partners’ operations, developers or
customers, a further limit on available vendors, reduced quality in services For example, while our business and operations were not materially
affected by the closures of Silvergate Capital Corp. and Signature Bank and the cessation of their real-time fiat currency payment networks
in March 2023, large cryptoeconomy participants experienced a temporary inability to transfer fiat currencies outside of standard
business hours.

We also rely on insurance carriers to insure customer
losses resulting from a breach of our physical security, cyber security, or by employee or third party theft. Our ability to maintain
crime, specie, and cyber insurance is subject to the insurance carriers’ ongoing underwriting criteria and our inability to obtain
and maintain appropriate insurance coverage could cause a substantial business disruption, adverse reputational impact, inability to compete
with our competitors, and regulatory scrutiny.

24

Any significant disruption in our products and services, in our
information technology systems, or in blockchain networks related to our business, could result in a loss of customers or funds and adversely
impact our brand and reputation and our business, operating results, and financial condition.

Our reputation and ability to attract and retain
customers and grow our business depends on our ability to operate our service at high levels of reliability, scalability, and performance,
including the ability to process and monitor, on a daily basis, a large number of transactions that occur at high volume and frequencies
across multiple systems. Our platform, the ability of our customers to trade, and our ability to operate at a high level, are dependent
on our ability to access the blockchain networks underlying Bitcoin, for which access is dependent on our systems’ ability to access
the internet. Further, the successful and continued operations of such blockchain networks will depend on a network of computers, miners,
and validators, and their continued operations, all of which may be impacted by service interruptions.

Our systems, the systems of our third-party service
providers and partners, and certain blockchain networks have experienced from time to time, and may experience in the future service interruptions
or degradation because of hardware and software defects or malfunctions, computer viruses or other malware, distributed denial-of-service
and other cyberattacks, disruptions in telecommunications services, insider threats, break-ins, sabotage, human error, vandalism, earthquakes,
hurricanes, floods, fires, and other natural disasters, power losses, fraud, military or political conflicts, terrorist attacks, or other
events. In