Company: FLDDW
Filing Date: 2025-05-15
Form Type: 424B3
Source: 0000950170-25-072851
Chunk: 34

Company: Fold Holdings, Inc.
Filing Date: 2025-05-15
Form: 424B3
Chunk 34
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-|:----|:------|-------------:|:--|
| Balance at January 1, 2024       |     | $     |   10,601,545 |   |
| Proceeds from issuances of SAFEs |     |       |      500,000 |   |
| Change in fair value of SAFEs    |     |       |       95,064 |   |
| Balance at March 31, 2024        |     |       |   11,196,609 |   |
| Proceeds from issuances of SAFEs |     |       |   71,606,134 |   |
| Change in fair value of SAFEs    |     |       |   88,277,790 |   |
| Balance at December 31, 2024     |     |       |  171,080,533 |   |
| Proceeds from issuances of SAFEs |     |       |            - |   |
| Change in fair value of SAFEs    |     |       |    6,503,113 |   |
| Conversion of SAFEs              |     |       | (177,583,646 | ) |
| Balance at March 31, 2025        |     | $     |            - |   |

Convertible Note The estimated fair value of the convertible note (refer to Note 10) was determined using a Monte Carlo simulation model, which requires the use of several inputs and significant assumptions, including the risk-free rate and volatility. The discount rate at each valuation date was the risk free rate. Additionally, in the Company’s estimate of the fair value of the convertible note, the forced conversion right was treated as soft call options within the valuation model. Fair value measurements associated with the convertible note 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 convertible note can result from updates to assumptions such as the price of bitcoin, expected timing and probability of the Company being able to exercise their forced conversion right, or changes in the risk-free rate, among other assumptions. Based on the Company’s assessment of the valuation of the convertible note, performed by the Company’s third-party valuation 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