Company: FLDDW
Filing Date: 2025-01-24
Form Type: 424B3
Source: 0001213900-25-006075
Chunk: 471

Company: Fold Holdings, Inc.
Filing Date: 2025-01-24
Form: 424B3
Chunk 471
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 any assets or surplus funds to the holders of convertible preferred and common stock. The combined value of the probability -weightedaverage of those outcomes is then discounted back to each reporting period in which the SAFEs are outstanding, in each case based on a risk -adjusteddiscount rate estimated to set the probability -weightedsum of each scenario to the purchase price. The discount rate at each valuation date was adjusted by the change in the USD CCC bond rate to reflect the market movement between the issuance date and valuation date. Fair value measurements associated with SAFEs were determined based on significant inputs not observable in the market, which represent Level 3 measurements within the fair value hierarchy. Increases and decreases in the fair value of the SAFEs can result from updates to assumptions such as expected timing and probability of a qualified financing event, or changes in discount rates, among other assumptions. Based on the Company’s assessment of the valuation of the SAFEs, performed by the Company’s third -partyvaluation specialists, none of the changes in the fair value of those instruments were due to changes in the Company’s own credit risk for the reporting periods presented. Judgment is used in determining these assumptions as of the initial valuation date and at each subsequent reporting period. Changes or updates to assumptions could have a material impact on the reported fair value and the change in fair value of SAFEs and the results of operations in any given period. The following table summarizes the significant inputs not observable in the market upon which the fair value measurements associated with the SAFEs were determined:

|             |     | VALUATION               
 TECHNIQUE               |     | UNOBSERVABLE                       
 INPUT                              |     |        AS OF 
 DECEMBER 31, 
         2023 |
|:------------|:----|:------------------------|:----|:-----------------------------------|:----|-------------:|
| Liabilities |     |                         |     |                                    |     |              |
| SAFEs       |     | Scenario-based approach |     | Probability weighting              |     | 1.0% – 80.0% |
|             |     |                         |     | Discount rate                      |     |       15.63% |
|             |     |                         |     | Remaining term to event (in years) |     |         0.75 |

F-25

Fold, Inc.
Notes to Financial Statements 13. FAIR VALUE MEASUREMENTS (cont.) The following table summarizes the changes in fair value associated with Level 3 financial instruments held at the beginning or