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Fold Holdings, Inc. (NASDAQ: FLD), the bitcoin financial services firm known for its consumer rewards offerings, revealed a series of financial maneuvers intended to clear secured liabilities, bolster its financial standing, and finance the subsequent chapter of its development plans.
The corporation liquidated roughly $45 million worth of bitcoin at an approximate valuation of $71,000 per coin. It utilized $20 million of these funds to settle bitcoin-backed debt and allocated the remaining $25 million towards advancing its consumer and enterprise platforms.
These actions result in Fold having no outstanding secured debt, while maintaining a bitcoin reserve of approximately 1,492 BTC, currently valued around $95 million.
Fold’s stock surged to $1.50 in early trading, marking an increase of over 130% for the day. Subsequently, the stock has retreated to below $1, still showing a gain of 30% on the day.
The primary transaction is linked to a comprehensive debt overhaul. Fold settled approximately $66.3 million in convertible notes, a position established in March 2025 when the company acquired 475 BTC for its treasury via these same instruments. The repayment of this debt freed up 521 BTC that were held as collateral, granting the leadership greater discretion over the company’s bitcoin assets moving forward.
“We have diminished financing risks, fortified our financial position, and ensured that short-term market fluctuations will not impede the execution of our strategic plan,” stated Will Reeves, Chairman and Chief Executive Officer. “With numerous product releases imminent, we believe Fold is entering a period of significant expansion in its corporate history.”
Fold’s credit card and new offerings
The core of Fold’s expansion strategy centers on its premier product, the Bitcoin Rewards Credit Card.
The extinguishment of debt eliminates recurring monthly cash interest expenses and, according to Reeves, provides the company with the financial agility to accommodate a larger cardholder base and forge financing partnerships that align with the card program’s economic trajectory as it grows.
The company also maintains a $45 million revolving credit line secured by bitcoin collateral and a $250 million equity purchase facility designated for future bitcoin acquisitions. These mechanisms reflect the corporate treasury strategy Fold has adhered to since becoming publicly traded on February 19, 2025, through a SPAC merger with FTAC Emerald Acquisition Corp.
This financial restructuring occurs amidst tangible business progress. Fold reported fiscal year 2025 revenue of $31.8 million, a year-over-year increase of 34%, fueled by transaction volumes approaching $960 million during the period.
Since its inception in 2019, the company has processed over $2 billion in cumulative transactions and distributed more than $45 million in bitcoin rewards to its users, according to company statements.
The combination of a debt-free balance sheet, a productive revenue stream, and a treasury retaining exposure to bitcoin’s potential appreciation positions Fold with a capital structure that its management contends is optimized for the present landscape—a period characterized by increasing adoption of bitcoin-centric financial products among both consumers and institutional funding entities.
“Throughout the past year, we have developed one of the most robust product pipelines in our history,” Reeves commented. “Enhanced liquidity and reduced debt ensure we possess the necessary resources and adaptability to realize our objectives during this critical juncture for Fold.”
Learn more at : bitcoinmagazine.com