Company: FLDDW
Filing Date: 2025-04-11
Form Type: 424B3
Source: 0001213900-25-031004
Chunk: 138

Company: Fold Holdings, Inc.
Filing Date: 2025-04-11
Form: 424B3
Chunk 138
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 liquidate that treasury in the near term. We do not believe we will need
to sell or engage in other transactions with respect to any of our Investment Treasury within the next twelve months to meet our working
capital requirements, although we may from time to time sell or engage in other transactions with respect to our Investment Treasury as
part of treasury management operations.

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As of December 31, 2024, we held 92 bitcoin in
our Rewards Treasury, matching our existing customer rewards liability, which is denominated in bitcoin. We anticipate being able to cover
the costs for future rewards via future revenues and operational capital on hand.

As of December 31, 2024, the Company had debt
principal due of $20.0 million in the form of a convertible note. The entirety of this note relates to the “December 2024 Securities
Purchase Agreement” described in the ‘Recent Developments’ section above. This note is convertible into shares of New
Fold Common Stock at a conversion price of $11.50 per share. The note is secured by Fold’s assets as collateral, including 300 of
Fold’s proprietary bitcoin, and will mature three years after the closing of the Business Combination.

We may continue to pursue additional capital via
various capital instruments in the future, however, such funding may not be available on terms acceptable to us or at all.

As of December 31, 2024, the Company recorded
$171.1 million of liabilities related to SAFEs. For accounting purposes, outstanding SAFEs are classified as liabilities. However, Fold’s
SAFEs were structured to be settled via the delivery of common and/or preferred shares upon execution of an equity financing or liquidity
event. On February 14, 2025, upon finalization of the Merger Agreement with FTAC Emerald, all SAFE notes held by the Company converted
into common shares.

On March 6, 2025, the Company added debt principal
due of approximately $46.3 million in the form of a convertible note. The entirety of this note relates to the “March 2025 Securities
Purchase Agreement” described in the ‘Recent Developments’ section above. This note is convertible into shares of common
shares at a conversion price of $15.00 per share. The Note is secured by the 475 bitcoin proceeds held as collateral and will mature March
6, 2031.

For the year ended December 31, 2024 and