Fold Holdings, Inc., a bitcoin financial services firm behind consumer reward products, (NASDAQ:FLD), announced A series capital transactions to fund the growth of the business, eliminate secured debts, improve its balance sheet and buy out its creditors.
The company monetized approximately $45 million in bitcoin at an average price of around $71,000 per coin, used $20 million of those proceeds to retire bitcoin-collateralized debt, and directed the remaining $25 million toward growth initiatives across its consumer and enterprise platforms.
Leave the move Fold debt-free on the secured side while preserving a bitcoin treasury of approximately 1,492 BTC — worth roughly $95 million at current prices.
Fold’s Stock exploded to $1.50 during early trading. That was an increase of over 130% for the day. The stock fell to below $1 since then and is only up 30% for the day.
The main transaction was part of a larger debt restructuring. Fold paid back approximately $66.3 millions in convertible notes. This was a position that it had originally acquired in March 2025, when the company purchased 475 BTC through these same instruments. In order to release 521 BTC, which were held in collateral as a result of the retirement of the debt, the management was able to have more control over future bitcoin holdings.
“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,” Will Reeves said, “I am the chairman and chief executive officer of this company.” “As we approach several product launches, we believe Fold is entering one of the most important growth periods in the company’s history.”
Fold’s new credit cards and products
Fold is the flagship product of Fold. Bitcoin Rewards Credit CardManagement’s growth theory is built around.
In Reeves’ view, the debt cancellation removes cash payments for interest from monthly expenses, giving the business the financial flexibility it needs to expand its cardholders and develop funding relationships with companies that will benefit the program as the scale increases.
It also offers a revolving $45 million credit line backed up by Bitcoin collateral, and a $250,000,000 equity facility. purchase facility aimed at future bitcoin accumulation — instruments that reflect the corporate treasury playbook Fold has committed to since going public on February 19, 2025, through a SPAC merger with FTAC Emerald Acquisition Corp.
A genuine business growth is the background to this restructuring. Fold’s revenue for fiscal year 2025 reached $31.8million, up 34% from the previous year, due to a transaction volume of almost $960million.
According to the company, since the launch of the service in 2019 the company has completed more than 2 billion transactions in total and awarded over 45 million dollars in bitcoins.
The combination of a debt-free balance sheet, a functioning revenue engine, and a treasury that retains exposure to bitcoin appreciation gives Fold a capital structure that management argues is designed for the current environment — one where bitcoin-native financial products are gaining traction with both consumers and institutional financing partners.
“Over the past year, we’ve built one of the strongest product roadmaps in our history,” Reeves said. “Increased liquidity and lower debt ensure we have the resources and flexibility to execute our plans during this pivotal moment for Fold.”
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Source: bitcoinmagazine.com
