Company: FLDDW
Filing Date: 2025-01-14
Form Type: S-4/A
Source: 0001213900-25-003167
Chunk: 367

Company: Fold Holdings, Inc.
Filing Date: 2025-01-14
Form: S-4/A
Chunk 367
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 months ended September 30, 2023, primarily due to less purchases of bitcoin to satisfy customer rewards. Cash flows from financing activities For the nine months ended September 30, 2024, cash provided by financing activities was $8.0 million, which is attributable entirely to cash received from SAFEs financings. There were SAFEs financing proceeds of $0.5 million collected for the nine months ended September 30, 2023. Safeguarding Obligation Liability and Safeguarding Asset Related to Bitcoin Held for Other Parties As detailed in Note 14, Safeguarding Obligation for Digital Assetswithin Notes to our financial statements, we recorded a safeguarding obligation liability and a corresponding safeguarding asset related to the bitcoin held for other parties. As of September 30, 2024, the safeguarding obligation liability related to bitcoin held for other parties was $6.8 million. As of December 31, 2023 and 2022, the safeguarding obligation liability related to bitcoin held for other parties was $1.2 million and $0.3 million, respectively. Fold partners with BitGo Trust Company, Inc., a South Dakota -charteredtrust company (“BitGo”), and Fortress Trust LLC, a Nevada -charteredtrust company (“Fortress”) (collectively, the “Bitcoin Service Providers”) to offer eligible customers the ability to buy, sell, store, and withdraw bitcoin through Fold. These Bitcoin Service Providers are both qualified custodians, meaning they are qualified under applicable state banking, payments or trust laws to custody digital assets, that offer institutional -gradecustody, liquidity, and security solutions for digital assets, specializing in multi -signaturewallets and cold storage services for bitcoin. Additional information with respect to the Bitcoin Service Providers’ respective qualifications under applicable law can be found online at https://fortresstrust.com/licenses, with respect to Fortress, and https://www.bitgo.com/company/licenses, with respect to BitGo. Fold does not directly hold or control any of its customers’ digital assets. Safeguarding customers’ cash and bitcoin is integral to the trust we build with our customers. We believe our policies, procedures, operational controls, and controls over financial reporting help protect us from material risks surrounding the safeguarding of these assets and conflicts of interest. Our controls over financial reporting include among others, controls over the segregation of corporate bitcoin balances from customer bitcoin balances. We have taken steps to mitigate the potential risk of loss for the bitcoin held for our customers, including by