Company: FLDDW
Filing Date: 2025-01-24
Form Type: 424B3
Source: 0001213900-25-006075
Chunk: 349

Company: Fold Holdings, Inc.
Filing Date: 2025-01-24
Form: 424B3
Chunk 349
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 gross costs of sales for the cost of each gift card sold. Our merchant offers revenue is subject to seasonality and is typically higher around major shopping periods (ex. Amazon Prime Day) and in the fourth quarter, driven by holiday spending and travel. The Company notes that the above categories of revenue are combined into Banking and Payments given their interconnected nature. For example, for the nine months ended September30, 2024, 96% of merchant offers were purchased with a Fold Card. In addition, Visa incentive revenues are recorded in direct proportion to Fold Card volumes, and Fold primarily incentivizes users to sign up for its Fold+ subscription by reducing transaction fees and increasing rewards on Fold Card transactions as well as by providing access to exclusive merchant offers. While Fold assesses each of these revenue streams separately for revenue recognition purposes, they all derive primarily from Fold Card transactions which are funded by user accounts at Sutton Bank. Custody and trading revenue Fold partners with BitGo Trust Company, Inc. (“BitGo”) and Fortress Trust LLC (“Fortress”) (collectively “Bitcoin Service Providers”) to offer eligible customers the ability to buy, sell, store, and withdraw bitcoin using the Fold app via an “Exchange Account”. Fold earns revenue on these transactions via a combination of transaction fees and transaction spreads. Spreads on trades include two components: (1) spreads charged by our Bitcoin Service Providers, which include any spreads passed on by their liquidity providers, and (2) Fold’s spread. Spreads charged by our Bitcoin Service Providers are collected directly by those providers and are not recognized as revenue by Fold. For customers that do not have a Fold+ subscription, Fold also adds a transaction fee to certain buy and sell transactions as outlined in our terms and conditions which can change from time to time. Transaction fees are stated as a percentage of the purchase or sale amount (i.e. 1.5%). Other revenue We occasionally earn revenues from alternate sources, including Fold merchandise sales, sponsorship revenues, affiliate revenues, and other one -offrevenue models. These revenues are typically non -recurringand are not currently material to our business. Revenue Rewards Users can earn bitcoin rewards by engaging in qualifying revenue -generatingactivities (spending money on Fold’s products, “Revenue Rewards”). Revenue Rewards constitute a “non -revenueelement” of our contracts with customers and are accounted for under ASC 815 — Derivatives and Hedging. Under that guidance, for all applicable revenue streams, Revenue Rewards are recorded as a direct reduction in the transaction price of