Fold Holdings, Inc. (NASDAQ: FLD), a prominent bitcoin financial services firm specializing in consumer rewards solutions, has recently announced a strategic series of capital transactions aimed at eradicating secured debt, bolstering its balance sheet, and facilitating the next stages of its growth strategy.
The company liquidated approximately $45 million worth of bitcoin at an average price of about $71,000 per coin. Subsequently, it allocated $20 million of those proceeds to retire bitcoin-collateralized debts, while the remaining $25 million was directed toward growth initiatives across its consumer and enterprise platforms.
These strategic actions have resulted in Fold achieving a debt-free status concerning secured liabilities, while simultaneously maintaining a bitcoin treasury of approximately 1,492 BTC, valued at roughly $95 million based on current market prices.
Initially, Fold’s stock experienced a surge, reaching $1.50 during early trading and reflecting an increase of over 130%. However, it subsequently declined to below $1, concluding the day with only a 30% increase.
This headline transaction is part of a broader restructuring effort aimed at refinancing existing debt. Fold repaid approximately $66.3 million in convertible notes, a position that the company established in March 2025 when it added 475 BTC to its treasury through similar instruments. By retiring this debt, the company was able to release 521 BTC previously secured as collateral, thereby granting management greater flexibility over its bitcoin holdings moving forward.
“We have mitigated financing risks, enhanced our balance sheet, and ensured that short-term market fluctuations will not impede our strategic objectives,” remarked Will Reeves, Chairman and Chief Executive Officer. “As we prepare for several product launches, we believe Fold is poised to enter a crucial growth phase in its history.”
Fold’s Credit Card and New Products
At the core of management’s growth strategy is Fold’s flagship product, the Bitcoin Rewards Credit Card.
The elimination of debt has effectively removed monthly cash interest payments from the expense structure. In Reeves’ view, this provides the company with the financial agility necessary to support a growing cardholder base and develop funding relationships that align with the economic aspects of the card program as it expands.
Additionally, the company has established a $45 million revolving credit facility secured by bitcoin collateral, as well as a $250 million equity purchase facility aimed at facilitating future bitcoin accumulation. These instruments reflect the corporate treasury strategy Fold has committed to since its public offering on February 19, 2025, via a SPAC merger with FTAC Emerald Acquisition Corp.
This restructuring occurs amid tangible business momentum. For fiscal year 2025, Fold reported revenues of $31.8 million, marking a 34% year-over-year increase, driven by transaction volumes nearing $960 million during this period.
Since its inception in 2019, the company has processed over $2 billion in total transactions and distributed more than $45 million in bitcoin rewards to its users.
The combination of a debt-free balance sheet, a robust revenue generation model, and a treasury that benefits from potential bitcoin appreciation positions Fold with a capital structure that management contends is aptly suited for the current market environment—one where bitcoin-native financial products are increasingly gaining traction among both consumers and institutional financing partners.
“Over the past year, we have developed one of the most robust product roadmaps in our history,” Reeves stated. “Enhanced liquidity and reduced debt position us with the resources and flexibility necessary to execute our plans during this pivotal period for Fold.”
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