Summary
- Fold Holdings divested approximately $45 million in Bitcoin, utilizing $20 million to eliminate all secured debt while allocating the remaining $25 million for growth initiatives.
- The company's debt-free status aims to enhance the expansion of its Bitcoin rewards credit card and facilitate new product introductions.
- This strategy also eradicates monthly interest payments, thereby boosting cash flow for a company that reported a 21% revenue drop in Q1 2026.
Fold Holdings, a fintech firm based in Phoenix that enables consumers to earn and utilize Bitcoin via everyday financial solutions, announced on Wednesday that it has completely eliminated its secured debt and generated $25 million in new capital by liquidating part of its Bitcoin assets. Following this news, the company's share price more than doubled shortly after the market opened.
The Nasdaq-listed company sold roughly $45 million worth of Bitcoin at an average price of around $71,000 per coin, using $20 million of the proceeds to pay off Bitcoin-collateralized debt and directing the remaining $25 million towards growth initiatives. This restructuring leaves Fold with no secured debt obligations.
CEO Will Reeves stated in a statement, "This decision reflects our conviction in Fold. We have reduced financing risk, strengthened our balance sheet, and ensured that short-term market volatility cannot stand in the way of executing our roadmap.”
He further noted, “As we approach several product launches, we believe Fold is entering one of the most important growth periods in the company's history.”
Investors reacted positively, with FLD shares soaring to as high as $1.60—an impressive 162% increase compared to Tuesday’s closing price. Currently, shares are trading at $1.10, which still represents an over 80% rise for the day.
Despite this substantial rebound, FLD shares have decreased by approximately 58% since the beginning of the year and over 78% in the past year.
Recent initiatives from Fold include a Bitcoin rewards credit card, a Bitcoin gift card service, and a business-oriented offering featuring its “Bitcoin Bonus” program that allows employers to distribute crypto bonuses to their employees.
Reeves emphasized that the Fold Bitcoin Credit Card is viewed as a significant long-term growth opportunity within its ecosystem, and that the cleaner balance sheet will enable the company to broaden its cardholder base and seek additional lending partnerships.
Eliminating the debt also instantly removes the burden of monthly cash interest payments, which Fold indicated should enhance its cash flow profile as new products are launched throughout the year.
According to the company’s latest earnings report, Fold's revenue for the first quarter stood at $5.6 million, marking a 21% decline from the previous year.