Company: FLDDW
Filing Date: 2025-08-12
Form Type: 10-Q
Source: 0000950170-25-107335
Chunk: 14

Company: Fold Holdings, Inc.
Filing Date: 2025-08-12
Form: 10-Q
Item: Item 8
Chunk 14
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 2025. The Company has an accumulated deficit of $136.8 million. Of that amount, $98.0 million relates to fair value adjustments on the Company's SAFE notes, $9.6 million relates to loss on extinguishment of debt, and $11.8 million relates to fair value adjustments on convertible debt instruments. As of June 30, 2025, the Company held 1,492 bitcoin in our Investment Treasury, valued at $159.9 million based on the price of bitcoin as of that date. Of that amount, 800 bitcoin, valued at $85.7 million, were restricted from use as operating capital and served as collateral for our convertible notes. Our Investment Treasury is considered a long-term investment and 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.As of June 30, 2025, we held 87 bitcoin in our Rewards Treasury, valued at $9.4 million, which matched our existing customer rewards liability, which is denominated in bitcoin. The Company anticipates being able to cover the costs for future rewards via future revenues and operational capital on hand.As of June 30, 2025, the Company had $66.3 million in principal debt outstanding in the form of two convertible notes. The June 2025 Amended Investor Note (as defined below) has a principal due of $20.0 million and is convertible into Common Stock at a conversion price of $9.00 per share. Refer to Note 10 for further details regarding the amendment of the December 2024 Initial Investor Note. This note is secured by Fold’s assets as collateral, including 300 of Fold’s proprietary bitcoin, and will mature on February 14, 2028. The March 2025 Investor Note has a principal balance of $46.3 million and is convertible into Common Stock at a price of $12.50 per share. This note is secured by Fold’s assets as collateral, including 500 of Fold’s proprietary bitcoin, and will mature on March 6, 2030. On the maturity date, the Company shall transfer to the investor the balance of any bitcoin not previously released to the Company upon conversion of the March 2025 Investor Note to Common Stock, with a maximum potential repayment of 500 bitcoin if