Fold Holdings Inc., the bitcoin‑centric financial services firm, has completed a decisive capital move that will see the company exit its secured debt obligations while preserving a substantial bitcoin treasury. By monetizing roughly $45 million worth of its own BTC holdings, the company used $20 million to retire bitcoin‑collateralized debt and allocated the remaining $25 million to fund expansion across both consumer and enterprise platforms.
This transaction, conducted at an average price of approximately $71,000 per coin, effectively frees the firm from secured liabilities and bolsters its balance sheet. The move also releases 521 BTC that had been locked as collateral for convertible notes, providing Fold with greater flexibility over its crypto assets.
Following the announcement, Fold’s shares briefly surged more than 130%, reaching $1.50 in early trading before settling below $1. The volatility reflects market uncertainty, yet the underlying fundamentals paint a compelling picture. In FY 2025, the company reported $31.8 million in revenue—a 34% year‑over‑year increase—driven by nearly $960 million in transaction volume. Since its inception in 2019, Fold has processed over $2 billion in total transactions and distributed more than $45 million in bitcoin rewards to users.
CEO Will Reeves emphasized that the debt elimination reduces financing risk and removes monthly interest expenses, freeing capital for growth initiatives. “With a debt‑free balance sheet, we can scale our Bitcoin Rewards Credit Card program and forge new funding relationships that align with our long‑term strategy,” Reeves said.
The company’s restructuring aligns with broader market dynamics. As institutional and retail demand for crypto‑backed financial products continues to rise, having a robust, debt‑free foundation positions Fold to capture market share in the burgeoning bitcoin rewards space.
Looking ahead, Fold plans to deploy its $25 million growth budget across product development, marketing, and strategic partnerships. The firm also maintains a $45 million revolving credit facility secured by bitcoin and a $250 million equity purchase facility aimed at future bitcoin accumulation—tools that underscore its commitment to a corporate treasury playbook.
In summary, Fold Holdings’ recent capital maneuver not only eliminates its secured debt but also sets the stage for an aggressive expansion of its bitcoin rewards ecosystem, potentially reshaping the competitive landscape of crypto‑enabled consumer finance.
