The Company holds digital assets, comprised solely of bitcoin, for two purposes: (1) to fulfill bitcoin rewards to customers in accordance with the terms and conditions of the Fold Rewards Program (“Rewards Treasury”); and (2) as a treasury asset to support our operating business with the option to hold as a near- to long-term investment to preserve potential upside in the value of that bitcoin (“Investment Treasury”). The Company purchases bitcoin for its Rewards Treasury to maintain a balance that is equal to or greater than its customer rewards liability and disburses bitcoin from its Rewards Treasury when customers redeem their rewards and the liability is satisfied.

As of March 31, 2026 and December 31, 2025, the Company held 903 and 1,606 bitcoin, respectively, with an aggregate cost of $74.8 million and $118.8 million, respectively. As of March 31, 2026, 430 bitcoin are restricted from use in operations under collateral agreements related to our Credit Facility. Refer to Note 10 for further details.

A reconciliation, in the aggregate, of beginning and ending balances of the Company’s digital assets as of the dates shown is as follows:


	Rewards Treasury			Investment Treasury			Digital Assets
Bitcoin held at January 1, 2025	$	8,569,651		$	93,568,700		$	102,138,351
Purchases of bitcoin		522,293			1,040,680			1,562,973
Bitcoin received from March 2025 Investor Note (2)		-			43,965,525			43,965,525
Disbursements of bitcoin (1)		(715,814	)		-			(715,814	)
Remeasurement gain (loss) on bitcoin (4)		(1,010,586	)		(15,617,152	)		(16,627,738	)
Bitcoin held at March 31, 2025	$	7,365,544		$	122,957,753		$	130,323,297
Purchases of bitcoin		2,130,176			4,322,120			6,452,296
Disbursements of bitcoin (1)		(3,239,166	)		-			(3,239,166	)
Remeasurement gain (loss) on bitcoin		616,315			6,378,918			6,995,233
Bitcoin held at December 31, 2025	$	6,872,869		$	133,658,791		$	140,531,660
Purchases of bitcoin		716,500			-			716,500
Bitcoin repayment for March 2025 Investor Note		-			(34,007,466	)		(34,007,466	)
Sale of bitcoin (3)		-			(14,376,468	)		(14,376,468	)
Disbursements of bitcoin (1)		(936,101	)	-				(936,101	)
Transfers of bitcoin from investment treasury		290,089			(290,089	)		-
Remeasurement gain (loss) on bitcoin (4)		(1,689,455	)		(28,629,465	)		(30,318,920	)
Bitcoin held at March 31, 2026	$	5,253,902		$	56,355,303		$	61,609,205

(1) Disbursements of bitcoin represent amounts that were distributed to customers to fulfill customer rewards obligations or to satisfy other current obligations.

(2) The bitcoin received from the March 2025 Investor Note is net of prepaid interest. Refer to Note 10 for additional details.

(3) Proceeds from the sale of bitcoin were used to pay off the June 2025 Amended Investor Note. Refer to Note 10 for additional details.

(4) The remeasurement loss of $30.3 million recognized on the digital assets balances for the three months ended March 31, 2026 consisted of a realized gain of $4.6 million and an unrealized loss of $34.9 million. The remeasurement loss of $16.6 million recognized on the digital assets balance for the three months ended March 31, 2025 consisted of a realized gain of $0.5 million and an unrealized loss of $17.1 million.